Rare Earth Deals at Quad — Why 17 Metals Are Reshaping Global Politics

General Studies Paper 3 — Economy, Science and Technology Source: Ministry of Mines / Quad FM Meeting, New Delhi 2026

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1. What happened

On the sidelines of the 11th Quad Foreign Ministers’ Meeting in New Delhi, two landmark agreements were signed:

• India–United States bilateral deal — titled “Securing of supply in the mining and processing of critical minerals and rare earths” — covering the full supply chain from mining to recycling.
• Quad Critical Minerals Initiative Framework — a four-nation agreement to mobilise $20 billion in government and private support to build supply chains only among Quad partner countries.

Both deals are a direct response to China imposing export controls on rare earth elements in 2025 — its retaliation to United States tariffs — which exposed how dangerously dependent the world is on China for these materials.

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2. What are Rare Earth Elements — the basics

Rare Earth Elements — What Students Must Know

• 17 metallic elements — 15 lanthanides + scandium + yttrium
• 60%+ global rare earth mining controlled by China
• 90% global rare earth processing and refining controlled by China

Why “rare” is a misnomer: These elements are not actually rare in the Earth’s crust — some are as abundant as copper. They are called “rare” because they are widely dispersed and almost never found in concentrated, economically usable deposits.

Where they are used

• Permanent magnets in electric vehicle motors and wind turbines
• Smartphone screens, lasers, and fibre optic cables
• Precision-guided missiles and radar systems — critical for defence
• Quantum computers and semiconductor chips

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3. Why this matters — China’s chokehold

How China weaponised rare earths — the chain of events:

• United States imposes tariffs on China
• China imposes export controls on rare earths (2025)
• Tech and defence manufacturing worldwide disrupted
• Quad nations rush to build alternative supply chains

Simple way to think about it: Controlling rare earths today is like controlling oil in the 20th century.

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4. The two deals — what they say and what they exclude

India–United States bilateral deal

• Covers full supply chain — mining, processing, recycling, investment
• Builds on India joining the United States-led Pax Silica initiative (February 2026)
• Promotes collaborative financing and scrap material management

Quad Critical Minerals Framework

• Mobilises $20 billion in combined government and private support
• Only projects in Quad countries, run by Quad-headquartered companies
• Harmonises domestic laws across four nations for seamless cross-border mineral access

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5. Value box — key institutions and laws

KABIL — Khanij Bidesh India Limited

Joint venture under the Ministry of Mines to acquire critical mineral assets overseas — lithium, cobalt, nickel.

Mines and Minerals (Development and Regulation) Amendment Act

Removed lithium, niobium, and rare earth elements from the atomic minerals list — now allowing private sector companies to mine them in India.

India’s Critical Minerals List (2023)

India’s first-ever list of 30 minerals deemed critical for economic and national security.

Pax Silica initiative

United States-led initiative to build a trusted, allied supply chain for silicon and semiconductor-related critical minerals.

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Prelims Practice Question

Consider the following statements regarding Rare Earth Elements and India’s critical minerals policy:

1. Rare Earth Elements are a set of 17 metallic elements and are called “rare” because they are extremely scarce in the Earth’s crust.
2. India’s Critical Minerals List, released in 2023, includes 30 minerals considered critical for India’s economic and national security.
3. The Mines and Minerals (Development and Regulation) Amendment Act allowed private sector companies to mine lithium, niobium, and rare earth elements by removing them from the atomic minerals list.

(a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Correct answer: (b) 2 and 3 only