Editor’s Note
India has voiced its support for structured international cooperation to mitigate risks in critical minerals supply chains, aligning with broader global efforts to establish coordinated trading frameworks.
On Wednesday, External Affairs Minister Dr. S. Jaishankar stated that India supports structured international cooperation to reduce risks in critical minerals supply chains. This statement comes at a time when the United States has urged its allied countries to work towards a coordinated trading framework.
Addressing the ‘Critical Minerals Ministerial’ in Washington, the External Affairs Minister highlighted the risks arising from excessive concentration in global supply chains. He said that coordinated and structured cooperation among countries is essential to mitigate these risks.
Jaishankar mentioned India’s initiatives to strengthen supply chains, including the National Critical Minerals Mission, Rare Earth Corridors, and responsible commerce. He also affirmed India’s support for the ‘FORGE’ initiative related to critical minerals.
His remarks came as US Vice President J.D. Vance called on allied and partner countries to collectively reshape the global critical minerals market. Vance stated that modern economies still depend on “real things” and that critical minerals are as essential as oil and gas. He warned that existing supply chains are fragile and limited to only a few regions.
According to Vance, price volatility and market distortions have made long-term investment difficult. He cited several instances where sudden supply surges in the market caused prices to crash, halting mining and processing projects.
He noted that the countries participating in the meeting collectively represent nearly two-thirds of the global Gross Domestic Product (GDP) and have the capacity to collectively change market dynamics. Vance said, “We are all on the same team.”
The Vice President proposed a preferential trade zone for critical minerals among allied and partner countries. He said this zone would be shielded from external disruptions and based on reference prices set for every stage of production.
According to Vance, these prices would serve as a floor, enforced through adjustable tariffs, to prevent dumping that harms domestic producers.
He explained that the aim of this initiative is to stabilize prices, encourage private investment, enable long-term planning, and ensure the availability of critical minerals during emergencies.