Quad Critical Minerals Initiative: USD 20 Billion Supply-Chain Pact
Why in the news
The four Quad nations launched a joint framework for critical minerals and rare earths, plus a separate India-US bilateral mineral pact, to cut reliance on China-dominated processing.
Key facts
- Members: India, the United States, Japan, Australia.
- Venue: 11th Quad Foreign Ministers’ Meeting, New Delhi.
- Parallel deal: bilateral India-US Mineral Pact, adding cooperation on mining, processing, refining and joint investment, building on iCET.
- China controls roughly 60-90% of world supply in several critical mineral categories, mainly in processing and refining.
Six core features
| Feature | Detail |
|---|---|
| Funding | About USD 20 billion from public money, soft loans and private capital |
| Location and ownership | Projects in Quad countries, run by Quad-based firms |
| Coverage | Mining, processing, refining, manufacturing inputs, recycling |
| Regulation | Aligned customs, environmental and legal standards |
| E-waste | Recovering rare earths and strategic metals from e-waste and scrap |
| Security | Joint export controls and monitoring against hostile actors |
Why minerals matter
- EVs: lithium, cobalt, nickel, manganese, graphite.
- Semiconductors: silicon, gallium, germanium, rare earths.
- Wind turbines and defence: neodymium, dysprosium, samarium.
- Solar panels: tellurium, indium. Hydrogen economy: platinum group metals.
Background
- Critical minerals are those whose secure supply is vital but disruption-prone; each country draws up its own list. India has identified 30, based on a 2023 Ministry of Mines expert committee.
- Rare Earth Elements are 17 metals used in magnets, lasers, defence electronics and catalysts; they are not truly rare but scattered, making mining and refining costly.
- NCMM (Ministry of Mines, 2024): ₹16,300 crore outlay plus about ₹18,000 crore expected from PSUs and others; covers exploration (GSI), overseas assets (KABIL), refining, recycling, stockpiling, R&D and international tie-ups.
- KABIL is a joint venture of NALCO, HCL and MECL; India also has mineral cooperation deals with Australia, the US, Argentina, Chile and Zambia, among others.
- Groupings named: Quad, Mineral Security Partnership, IPEF.
Exam angle
- Meeting: 11th Quad Foreign Ministers’ Meeting, New Delhi.
- Money mobilised: about USD 20 billion.
- Related terms: REEs, NCMM, KABIL, iCET, Mineral Security Partnership.