What is the Pax Silica initiative?

The Pax Silica initiative is a global collaboration launched by the US in December 2025 to diversify critical mineral supply chains and challenge China's dominance in sectors like AI and electric vehicles.

Why is China's dominance in critical minerals a concern?

China controls a significant portion of global rare-earth processing and lithium-ion battery production, leading to concerns about supply chain vulnerability and export restrictions.

What challenges does India face in the critical mineral supply chain?

India faces challenges in technological capabilities and capital expenditure needed for mining and processing critical minerals, despite holding significant rare-earth reserves.

Home / Business and Economy / India Joins US Race to Curb China's Mineral Grip

India Joins US Race to Curb China's Mineral Grip

8 Feb

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Summary

US invites India to Pax Silica initiative to challenge China's critical mineral dominance.
Initiative aims to diversify supply chains for minerals vital to AI, EVs, and green energy.
India's rare-earth reserves are significant, but technology and capital remain hurdles.

India Joins US Race to Curb China's Mineral Grip

The United States is actively seeking India's participation in the Pax Silica initiative, a global collaboration designed to disrupt China's control over critical mineral supply chains. Launched in December 2025 by the US, the initiative aims to foster international cooperation in mining, processing, and technology for essential minerals like lithium and rare-earth elements, which are vital for artificial intelligence, electric vehicles, and green energy technologies.

Currently, nine nations, including Australia, Japan, and South Korea, are official signatories, with several others as partners. China's significant market share, controlling around 90% of global rare-earth processing and a substantial portion of lithium-ion battery production, has prompted this diversification effort. Recent Chinese export restrictions on rare-earth magnets have underscored the vulnerability of global supply chains to single-country dependence.