Jaishankar Urges Global De-Risking of Critical Minerals Supply Chains as Strategic Competition Intensifies

India’s External Affairs Minister S. Jaishankar has called for urgent and coordinated global action to reduce the risks created by highly concentrated critical minerals supply chains, warning that the current structure poses serious economic, technological, and national security vulnerabilities. Speaking at the inaugural Critical Minerals Ministerial in Washington, Jaishankar underscored that dependence on a narrow group of suppliers has transformed minerals from a commercial commodity into a strategic pressure point in global geopolitics.

Addressing representatives from over 50 countries, Jaishankar emphasized that excessive concentration of mining, processing, and refining capacity undermines supply security for industries central to the future economy, including clean energy, electric vehicles, semiconductors, defence manufacturing, and advanced digital infrastructure. His remarks reflect growing international recognition that critical minerals are no longer just an industrial input but a strategic asset shaping power relations between nations.

India flags risks in mineral supply | Moneycontrol

India’s Expanding Role in Mineral Security

Jaishankar highlighted India’s domestic initiatives to strengthen its position in the critical minerals ecosystem. These include the National Critical Minerals Mission, the development of Rare Earth Corridors, and a policy push to promote responsible mining, processing, and downstream manufacturing. These efforts are aimed at reducing India’s dependence on external suppliers while positioning the country as a reliable and trusted partner in emerging global supply chains.

India’s approach is designed not merely to secure raw materials but to build value-added capabilities such as separation, refining, magnet manufacturing, and advanced material processing. This signals a strategic shift from being a resource-dependent consumer to becoming an integrated player across the minerals value chain, aligning industrial policy with long-term energy transition and technological ambitions.

The US-Led Push to Reshape Global Supply Chains

The Washington ministerial marks a significant escalation in US-led efforts to restructure the global critical minerals architecture. A key focus of the meeting was the FORGE initiative, which aims to establish structured cooperation among partner countries on exploration, processing, refining, recycling, and stockpiling of strategic minerals. The initiative is widely seen as a successor to earlier mineral security frameworks and reflects Washington’s intent to build durable, allied supply networks.

In parallel, the United States has announced Project Vault, a multi-billion-dollar effort to create strategic reserves and preferential trading arrangements for critical minerals. These measures are intended to protect partner economies from supply disruptions, market manipulation, and geopolitical leverage, while encouraging investment into alternative mining and processing hubs outside dominant supply centers.

China’s Dominance and Growing Global Concern

Underlying these initiatives is widespread concern over China’s dominant position in several key segments of the critical minerals supply chain. While mineral deposits are distributed across many countries, China controls a large share of global processing and refining capacity for rare earths, lithium, graphite, and other battery and clean energy materials. This has given Beijing significant influence over downstream industries and pricing dynamics.

Western governments and their partners increasingly view this concentration as a strategic vulnerability. The push for diversification is therefore not only about economic efficiency but about reducing geopolitical exposure and ensuring that access to critical materials cannot be used as a tool of political or economic coercion.

India–US Strategic Alignment on Critical Minerals

Jaishankar’s participation also reflects deepening strategic alignment between India and the United States on critical minerals. Recent agreements and dialogues have focused on joint exploration, technology collaboration, investment facilitation, and engagement with mineral-rich third countries in regions such as Africa, Latin America, and Australia. These partnerships aim to integrate India more closely into trusted supply chain networks while expanding alternatives to existing dominant players.

For India, this alignment offers an opportunity to attract investment, access advanced processing technologies, and strengthen its industrial base. At the same time, it allows New Delhi to play a more influential role in shaping the emerging rules and structures governing global mineral trade and cooperation.

The MGMM Outlook

India’s External Affairs Minister S. Jaishankar’s remarks in Washington highlight a growing global recognition that critical minerals are no longer just industrial inputs but strategic assets that shape economic power, technological leadership, and national security. The heavy concentration of mining, processing, and refining in a limited number of countries has created serious vulnerabilities for sectors such as clean energy, electric vehicles, semiconductors, defence manufacturing, and digital infrastructure. The push led by the United States through initiatives like FORGE and Project Vault reflects a broader effort to restructure global supply chains, reduce exposure to geopolitical pressure, and build trusted, allied networks that can withstand disruptions and market manipulation.

India’s expanding role in this evolving landscape signals a strategic shift from dependence to integration. Through initiatives such as the National Critical Minerals Mission and Rare Earth Corridors, India is working to strengthen domestic capabilities while also positioning itself as a reliable partner in global supply chains. This approach goes beyond securing raw materials and focuses on building value-added capacity in refining, separation, and advanced manufacturing. At the same time, deeper India–US alignment on minerals reflects a shared objective to diversify away from excessive concentration, particularly in processing and refining, and to create a more balanced, resilient global ecosystem where access to critical resources cannot be used as a tool of geopolitical leverage.

(Sources: Moneycontrol, India Today, Economic Times)