India Calls for Stronger Critical Mineral Supply Chains, Flags China Dependence

India on Monday highlighted the need to urgently secure and diversify critical mineral supply chains to support its manufacturing ambitions and fast-growing electronics sector, amid concerns over heavy global dependence on China.

Union Minister Ashwini Vaishnaw raised the issue at a high-level ministerial meeting on securing critical minerals supply chains hosted by US Treasury Secretary Scott Bessent in Washington. The discussions focused on reducing risks and vulnerabilities in global supply chains for critical minerals, including rare earth elements.

Vaishnaw said secure access to critical minerals is vital for strengthening India’s manufacturing resilience and achieving the goal of Viksit Bharat. The Indian Embassy in Washington said India reaffirmed its commitment to building reliable and diversified mineral supply chains critical for economic growth and technological self-reliance.

India’s push is closely linked to China’s dominance in the sector. China accounts for around 60–70 per cent of global rare earth mining and nearly 90 per cent of processing and refining capacity. It also controls a large share of the global supply of lithium, cobalt and graphite key inputs for batteries, semiconductors, electric vehicles and renewable energy systems. India currently imports most of its rare earths and critical mineral processing inputs, making it vulnerable to supply disruptions and geopolitical tensions.

US Treasury Secretary Bessent said participating countries shared concerns over the high concentration of critical mineral supply chains and agreed on the need for swift, coordinated action to “derisk” supply chains without breaking global trade links.

Finance and economy ministers from major economies, including Australia, Canada, the European Union, Japan, Germany and the UK, attended the meeting.

Critical minerals are central to future industries such as clean energy, defence, advanced electronics and artificial intelligence, for securing critical minerals India also launched the National Critical Mineral mission (NCMM) in early 2025. For India, securing alternative sources, developing domestic processing capacity and partnering with trusted countries are seen as key to reducing dependence on China and ensuring long-term economic and strategic security.

During the visit, Vaishnaw also held discussions at the White House on the upcoming India-AI Impact Summit, which will be hosted in New Delhi in February 2026.