Critical minerals have gained significant prominence in geopolitics due to their crucial role in renewable technologies and the competition for non-fuel minerals in resource-rich, developing countries.
During the Quad Foreign Ministers' meeting on July 1, a joint statement was released announcing the Quad Critical Minerals Initiative, through which the four-nation grouping aims to secure a stable supply of critical minerals and reduce dependence on China.
This move follows Beijing’s implementation of export restrictions in April on seven rare earth elements and magnets used in defense, energy, and automotive industries, a response to US President Donald Trump’s tariff measures against Chinese goods.
The Quad group mentioning China the group the statement outlined concerns over abrupt constriction and future reliability of critical minerals supply chains.
What is Quad Critical Minerals initiative?
The initiative, launched in July 2025, focuses on collaborating to secure and diversify supply chains for essential minerals used in industries ranging from automotive manufacturing to wind energy.
It aims towards enhancing cooperation on key priorities such as securing and diversifying reliable supply chains, along with the recovery and reprocessing of critical minerals from electronic waste.
The Quad countries share a common concern about reducing dependence on a single nation, as China has used mineral restrictions as leverage during the recent US-China trade conflict.
The goal is to build resilience so that industries from Silicon Valley to New Delhi are not vulnerable to Beijing’s influence. The Quad is now taking concrete steps in this high-stakes area.
On the sidelines of the Foreign Ministers’ Meeting, around 30 to 40 companies from Quad nations convened to discuss private sector cooperation, including participation in the planned initiative.
The China angle
China holds a dominant position as a leading investor in mining operations across Africa and South America.
It also accounts for a substantial share of global mineral processing it handles about 60% of lithium, 90% of rare earth elements, and 62% of cobalt refining, according to the Observer Research Foundation.
Although India, Australia, and the US have significant natural resource reserves, they are currently not in a position to fully displace China’s role in the supply chain.
Following the 2010 tensions between China and Japan over the Senkaku Islands, Japan began reviving parts of its domestic mineral processing capacity.
As geopolitical friction increases in the South China Sea, Japan is stepping up its efforts to diversify its sources for critical minerals.
China has used its market position strategically amid ongoing tech-related and trade disputes with the United States. Recently, Chinese authorities pledged “zero tolerance” for the illegal export of strategic minerals, Bloomberg reported.
In addition, China suspended exports of seven heavy rare earth elements - samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium as well as rare earth magnets.
In 2024, following US policies aimed at restricting China’s access to semiconductor technology, Beijing responded by banning exports of gallium, germanium, antimony, and graphite, citing their potential for dual-use.
According to Chinese customs statistics, exports of rare earth magnets declined by 52.85% in May, marking the most significant monthly drop since January 2012.
How is India pacing up it's game?
During his recent visit to Argentina, Prime Minister Narendra Modi met with Chilean President Gabriel Boric representing two countries in the lithium triangle on the sidelines of the recent BRICS summit in Brazil.
The discussions were strategically focused on exploring cooperation and engagement in the area of critical minerals.
At the BRICS summit PM Modi has warned the weaponization of critical minerals and stressed the need to work together to make supply chains secure and reliable.
India has long relied heavily on mineral imports but is now taking active steps to diversify its sources.
To support this goal, Khanij Bidesh India Ltd. (KABIL) was established in 2019 as a joint venture between National Aluminium Company Ltd, Hindustan Copper Ltd, and Mineral Exploration and Consultancy Ltd. The company’s primary objective is to secure access to mineral resources abroad.
In 2024, KABIL signed a lithium supply agreement with Argentina - one of several strategic collaborations across regions including Latin America, Central Asia, and Africa.
India has also joined the Mineral Security Partnership (MSP) in 2023, becoming the first developing country in the coalition.
Its trilateral engagement with Japan and Australia under the Supply Chain Resilience Initiative (SCRI), launched in 2021, is aimed at reducing dependence on Chinese-controlled networks.
The India-US TRUST (Transforming Relationship Utilizing Strategic Technology) also has a focus on strategic minerals processing and recovery.
India is also in early stage of sourcing from countries such as Zambia, Mongolia, and the Democratic Republic of Congo (DRC).
India has engaged in technology transfer talks with Japan and actively participated in global forums such as the Quad Security Dialogue, Minerals Security Partnership, Critical Raw Materials Club (EU+), and the Supply Chain Resilience Initiative to strengthen its position in critical mineral supply chains.
Path to counter China
Countering China today involves reducing the world’s reliance on its control over strategic mineral supply chains, positioning the Quad as a key platform to tackle this challenge.
The Quad’s approach places stronger emphasis on security, which may shift the focus toward risk mitigation rather than purely commercial interests, further underscoring the strategic importance of these resources.
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