MC EXPLAINER Can the Quad break China’s rare earth monopoly? Inside its new minerals initiative

The minerals initiative is part of a broader Quad push to strengthen economic and strategic cooperation

The Quad, a strategic grouping of India, the United States, Japan, and Australia, has launched a new initiative focused on critical minerals.

Called the Quad Critical Minerals Initiative, it was announced after a foreign ministers’ meeting in Washington, D.C., on July 1. The meeting was attended by External Affairs Minister S Jaishankar, US Secretary of State Marco Rubio, Australian Foreign Minister Penny Wong and her Japanese counterpart Takeshi Iwaya.

The initiative aims to build secure, diverse, and reliable supply chains for minerals that are essential to modern technologies, clean energy, and national defence, especially lithium, nickel, cobalt, and rare earth elements.

Why are these minerals so important?

Critical minerals are used in:

• Electric vehicle (EV) batteries
• Mobile phones and laptops
• Solar panels and wind turbines
• Defence and aerospace equipmentAs demand for green and digital technologies rises, so does the global competition for these minerals. China currently dominates this space, controlling much of the world’s refining and processing capacity, even if the raw materials are mined elsewhere.

What’s the problem the quad is trying to solve?

The issue is not just supply, it's dependency.

Right now:

• China is the top processor of many key minerals.
• Any disruption, trade restrictions, price manipulation, or export bans can rattle global industries.
• Countries like India and others in the Indo-Pacific are vulnerable to economic pressure and supply chain shocks.

The Quad wants to change this by creating alternative sources and routes for these minerals and reducing strategic reliance on one country.

What will the initiative do?

According to the official Quad factsheet, the initiative will:

• Secure and diversify critical mineral supply chains
• Encourage e-waste recovery and mineral reprocessing
• Attract private investment into mining and refining
• Build capacity in partner countries across the Indo-Pacific

The four countries will also work together on technology transfer, regulatory coordination, and building infrastructure to support these goals.

Why does this matter for India?

For India, this initiative brings:

• Stronger energy security as it ramps up EV and renewable projects
• Reduced reliance on China for key inputs
• Opportunities to attract investment into its own mining and refining sectors
• Strategic partnerships with like-minded nations on future tech

It also fits into India’s larger goals of becoming a global manufacturing hub and building resilient supply chains under the Atmanirbhar Bharat agenda.

What else was announced?

The minerals initiative is part of a broader Quad push to strengthen economic and strategic cooperation, including:

• A Ports of the Future Partnership, with a logistics summit in Mumbai in October 2025.
• Expanded maritime law enforcement and domain awareness across the Indo-Pacific.
• A new undersea cable forum to secure digital infrastructure.
• Greater focus on illegal maritime activity, including fishing and smuggling.

What’s the long-term impact?

If implemented successfully, the Quad Critical Minerals Initiative could:

• Create alternative global supply chains independent of China
• Stabilise prices and reduce volatility in mineral markets
• Support faster adoption of clean energy technologies
• Strengthen regional trust in the Quad’s leadership

The Quad's minerals initiative is part of a broader effort to build stable and diversified supply networks.