Washington, February 5: Indian External Affairs Minister Dr. S. Jaishankar stated on Wednesday that India supports structured international cooperation to mitigate risks in critical minerals supply chains. This remark comes as the United States urges allied nations to work towards a coordinated trading framework.
Addressing the ‘Critical Minerals Ministerial’ in Washington, Jaishankar highlighted the risks posed by excessive concentration in global supply chains. He emphasized the need for coordinated and structured cooperation among countries to address these risks.
Jaishankar mentioned India’s initiatives to strengthen supply chains, including the National Critical Minerals Mission, Rare Earth Corridors, and responsible commerce. He also expressed India’s support for the ‘Forge’ initiative related to critical minerals.
His comments coincided with U.S. Vice President J.D. Vance’s call for allied and partner nations to reshape the global critical minerals market.
Vance noted that modern economies still rely on “real things,” asserting that critical minerals are as essential as oil and gas. He warned that existing supply chains have weakened and are limited to a few regions.
“Nothing is more real than critical minerals,” he stated.
According to Vance, price volatility and market distortions have made long-term investments challenging. He cited instances where sudden supply increases led to price drops, halting mining and processing projects.
He pointed out that the countries participating in the meeting represent nearly two-thirds of the global GDP and collectively have the power to change market dynamics. “We are all on the same team,” Vance remarked.
The Vice President proposed establishing a preferential trade zone for critical minerals among allied and partner countries. This zone would be insulated from external disruptions and based on predetermined reference prices at every stage of production.
Vance explained that these prices would serve as a minimum level, implemented through adjustable tariffs to prevent dumping that harms domestic producers. “We want allied and partner countries to come together to form a trading block,” he added.
He noted that the initiative aims to stabilize prices, encourage private investment, and facilitate long-term planning, while also ensuring the availability of critical minerals during emergencies.