India Joins US-Led Critical Minerals Alliance to Counter China's Supply Chain Dominance

India has aligned with the United States on critical minerals cooperation through support for the US-led FORGE initiative, positioning itself as a key partner in building supply chains independent of China's dominance. The alignment was announced alongside the 2026 Critical Minerals Ministerial and a sweeping bilateral trade pact.

The trade agreement reduces US tariffs on Indian goods to 18 percent from up to 50 percent, while India commits to eliminating tariffs on American imports and boosting purchases of US energy, technology, agricultural products, and coal valued at over $500 billion.

Breaking China's Mineral Monopoly

The Critical Minerals Ministerial, a high-level forum involving over 50 countries, addresses vulnerabilities in supply chains dominated by China. Beijing controls processing and refining for key minerals at alarming levels:

This midstream monopoly enables price manipulation, export restrictions, and geopolitical leverage affecting EV batteries, renewable energy systems, and defense technology worldwide.

Trade Mechanics Enable Cooperation

The bilateral trade deal facilitates critical minerals flow through multiple mechanisms. US investment in Indian exploration, mining, processing, and recycling will leverage complementary strengths—India's geological resources paired with American capital and technology.

India pledges increased purchases of US products, potentially shifting away from Russian oil dependence. The Trade Policy Forum will hold early meetings to operationalize agreements, including 2024 MOUs on supply chain cooperation.

Key Commitments

Tariff Structure:

• US reduces tariffs to 18% on Indian imports
• India eliminates tariffs on US goods

FORGE Initiative:

India backs this "OPEC-like" bloc—successor to the Minerals Security Partnership—designed to create diverse production centers and attract stable investments in critical mineral extraction and processing.

Bilateral Framework:

External Affairs Minister S. Jaishankar and US officials including Secretary of State Marco Rubio and Treasury Secretary Scott Bessent agreed on Quad and multilateral expansion, de-risking strategies through India's National Critical Mineral Mission and US frameworks.

India's Strategic Positioning

India remains 100 percent import-dependent on minerals like lithium and rare earths, making supply chain diversification critical. The National Critical Mineral Mission, launched in 2024, drives domestic exploration, auctions, and overseas acquisitions.

Union Minister Ashwini Vaishnaw represented India at the ministerial, where the US signed 11 bilateral frameworks or MOUs with nations including Argentina to secure processed minerals through allied cooperation.

Building the Alternative

The partnership positions India as a potential processing hub for lithium, cobalt, rare earths, and other strategic minerals. By combining Indian geological potential with US technology and capital, both nations aim to create viable alternatives to Chinese-controlled supply chains essential for clean energy transition and defense manufacturing.

The US emphasizes global alliances over self-sufficiency, using executive orders for bilateral deals, trade remedies, and price supports to counter China's dominance while avoiding complete decoupling that could disrupt global markets.