India Invited to US-Hosted G7 Talks on Critical Minerals

India, Australia and several other countries are expected to take part in a meeting of finance ministers from the Group of Seven (G7) countries that the United States is hosting on Monday to discuss on critical minerals, US Treasury Secretary Scott Bessent told Reuters.

Bessent said the US has been pushing for focused discussions on critical minerals since the G7 leaders’ summit last summer, given growing concerns over supply disruptions. Finance ministers had already held a virtual meeting on the issue in December. However, Bessent added that he was not yet sure whether India had formally accepted the invitation to attend Monday’s meeting.

Point to note: Global supplies of critical minerals were disrupted after China, the world’s top producer, introduced trade curbs last year.

The G7 includes the United States, Britain, Japan, France, Germany, Italy and Canada, along with the European Union. Most of these economies are heavily dependent on China for supplies of critical minerals such as rare earths, lithium and cobalt. At their meeting last June, G7 leaders agreed on an action plan to strengthen supply chains and reduce reliance on any single country, the report further stated.

Notably, India has been increasingly involved in global discussions on critical minerals, which are essential for electric vehicles, renewable energy, defence equipment and electronics.

In 2023, India identified 30 minerals as “critical” to its economic and national security, and has since stepped up efforts to secure overseas supplies through partnerships and state-backed ventures such as Khanij Bidesh India Ltd (KABIL).

China currently dominates the global critical minerals supply chain, refining between 47% and 87% of key minerals such as copper, lithium, cobalt, graphite and rare earths, according to the International Energy Agency, cited by Reuters. These materials are vital for semiconductors, clean energy technologies, batteries and military equipment.

Western countries, including India’s partners in the G7, have been trying to reduce their dependence on China, especially after Beijing imposed stricter export controls on certain rare earths and related products. The urgency has grown after recent reports that China began restricting exports of rare earths and powerful magnets to Japanese companies and banned shipments of some dual-use items to Japan’s military.

Bessent told Reuters that China is still meeting its commitments to buy US soybeans and ship critical minerals to US firms.