India and U.S. Explore Strategic Partnership to Invest in Africa’s Critical Minerals

In a landmark development that underscores the evolving contours of global strategic alignments, India and the United States are in advanced discussions to jointly invest in Africa’s critical minerals sector. The collaboration is aimed at securing key resources essential for the green energy transition, reducing dependency on Chinese supply chains, and strengthening economic ties with the African continent.

This prospective investment partnership reflects a broader effort to diversify and secure access to minerals like lithium, cobalt, nickel, graphite, manganese, and rare earth elements—resources that are fundamental to the global shift towards electric mobility, clean energy technologies, and digital infrastructure.

Image for representation | Economic Times

Shifting Supply Chains: A Shared Strategic Priority

The growing demand for critical minerals globally has drawn attention to Africa’s untapped reserves. While China currently controls a significant portion of the global refining and supply chains—reportedly over 70% of lithium and 60% of rare earth processing—the strategic calculus of both India and the U.S. is now shifting toward diversification and resilience.

To counterbalance China's dominance, India and the U.S. are pursuing bilateral and multilateral partnerships to co-develop supply chains that are not only diversified but also transparent, environmentally responsible, and ethically governed. The collaboration extends beyond mere trade interests to include shared political and economic imperatives, such as climate security, industrial competitiveness, and geostrategic autonomy.

Institutional Mechanisms and Agreements

In June 2023, India formally joined the U.S.-led Minerals Security Partnership (MSP), a coalition of like-minded countries that seeks to build secure and sustainable supply chains for critical minerals. This was followed by the signing of a Memorandum of Understanding in October 2024 between India and the U.S., covering cooperation in the entire value chain of battery and energy minerals—exploration, mining, processing, and recycling.

These agreements aim to facilitate collaboration not only in Africa but also in Latin America and Southeast Asia, where strategic mineral deposits remain underdeveloped. They also underscore the willingness of the two democracies to combine diplomatic, technological, and financial resources in a bid to access and process these minerals responsibly.

Africa at the Heart of the Strategy

Africa has become the focal point of these joint efforts due to its vast and underutilized mineral reserves. Countries like the Democratic Republic of Congo, Zambia, Namibia, Ghana, and South Africa possess abundant resources critical to green technologies. However, many of these nations lack the infrastructure and investment needed to process minerals domestically, often exporting raw materials with little local value addition.

India, under its newly launched National Critical Minerals Mission, is actively seeking mineral exploration opportunities across the continent. Indian state-owned companies such as NMDC have established regional hubs to identify and acquire mineral assets. The Indian government is also engaging diplomatically with African nations through high-level visits and strategic dialogues aimed at long-term resource partnerships.

On the U.S. side, the International Development Finance Corporation (DFC) has committed resources to support infrastructure projects such as the Lobito Corridor railway, which connects mineral-rich regions of Zambia and Congo to Angolan ports, thereby improving the logistics of mineral exports from the continent. The corridor is being seen as a template for how joint U.S.-India-backed infrastructure can enhance Africa’s export capacity and regional development.

Alignment with African Priorities

African nations are increasingly demanding a new model of mineral development—one that ensures value addition within their borders, promotes local employment, and contributes to sustainable development. India and the U.S. have both expressed their commitment to a “beneficiation-first” model, where raw materials are processed and refined closer to the source, thereby helping African economies move up the global value chain.

This aligns well with domestic priorities in several African countries that are looking to escape the historical cycle of extractive dependence and underdevelopment. Experts argue that such a model, if implemented in partnership with responsible investors, can transform Africa from a raw resource exporter into a key player in the global green economy.

A New Framework for India–U.S.–Africa Collaboration

Policy research institutions such as the Centre for Social and Economic Progress (CSEP) have proposed the establishment of a “Critical Minerals Compact” between India and African nations. This compact would focus on capacity building, joint exploration ventures, environmentally safe extraction, and equitable benefit-sharing models. The idea is gaining traction and could be formally discussed during the next India–Africa Forum Summit.

Simultaneously, think tanks like the Atlantic Council have recommended a trilateral approach, where U.S. and Indian institutions work with African governments to create investment frameworks, mitigate project risks, and co-finance mineral development ventures. Such collaboration could also integrate climate financing, infrastructure development, and industrial policy to support local processing industries in Africa.

Conclusion: Toward a Multipolar Mineral Future

The India–U.S. partnership in Africa’s critical minerals sector marks a strategic shift in how nations approach resource diplomacy in the 21st century. No longer limited to bilateral deals or extractive models, the new approach emphasizes joint investments, local empowerment, and sustainable value chains. While challenges remain—ranging from political instability in parts of Africa to the capital-intensive nature of mining and refining—the shared intent of India and the U.S. to create secure, diversified, and ethical supply chains offers a promising pathway.

If executed with vision and accountability, this trilateral cooperation can contribute not just to the decarbonization of the global economy but also to a more equitable and multipolar future in which Africa becomes a central player in the world’s energy transition.

(Sources: Hindustan Times, Economic Times)