New Delhi: In a strategic move to loosen China’s stronghold on critical minerals vital for modern technology and defence, the United States has extended special invitations to India and Australia for a high-level G7 finance ministers’ meeting in Washington.
Hosted by US Treasury Secretary Scott Bessman, the discussions, slated for Monday, aim to fortify global supply chains and reduce over-reliance on Beijing for rare earth elements.
These minerals, essential for manufacturing mobile phones, batteries, semiconductors, renewable energy systems, and military hardware, have become a geopolitical flashpoint.
According to data from the International Energy Agency, China dominates 47% to 87% of the refining processes for key resources like copper, lithium, cobalt, graphite, and rare earths.
Recent export curbs imposed by China on Japan for rare earths and dual-use items have amplified Western anxieties over potential economic disruptions and security risks.
Secretary Bessman confirmed India’s invitation during a recent briefing, though acceptance remains uncertain. The initiative builds on talks initiated at last summer’s G7 summit, underscoring a collective push to diversify sources. Australia, already deepening ties with the US through an $8.5 billion deal signed in October, is poised to play a pivotal role. This pact focuses on building strategic reserves of rare earths and lithium, drawing interest from Europe, Japan, South Korea, and Singapore.
Experts view this as a game-changer, potentially reshaping global trade dynamics and bolstering India’s position in the minerals sector.
As nations scramble to secure supplies amid rising tensions, the meeting could herald a new era of international collaboration against monopolistic practices.