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Foreign Policy Watch: India-United States

US critical minerals self-sufficiency push collides with 2027 deadline

Why in News

The United States is facing challenges in achieving self-sufficiency in defence critical minerals before its January 2027 target. The effort is complicated by China’s dominance, which accounts for over 80% of global critical minerals refining capacity.

Key Highlights

  • Target minerals: The US is prioritising rare earth elements, tungsten and tantalum for defence and high-technology manufacturing.
  • Project Vault: The US is building strategic reserves through Project Vault, a programme to stockpile critical minerals for defence and industrial security.

What are Critical Minerals?

  • Critical minerals are minerals essential for economic development, clean energy and national security, but whose supply chains are vulnerable to disruption.
  • They are indispensable for semiconductors, batteries, electric vehicles, renewable energy systems, aerospace and defence equipment.

Importance of the Target Minerals

  • Rare Earth Elements (REEs): Used in permanent magnets, fighter aircraft, missiles, radar systems, wind turbines and electric vehicles.
  • Tungsten: Known for its high melting point and hardness; used in armour-piercing ammunition, aerospace components and cutting tools.
  • Tantalum: Used in electronic capacitors, semiconductors, medical devices and defence electronics because of its excellent heat and corrosion resistance.

Why China Dominates

  • Controls a large share of mining, refining and processing capacity.
  • Built an integrated mine-to-manufacturing supply chain over several decades.
  • Benefits from state support, advanced processing technology and economies of scale.
  • Has previously used export restrictions as a strategic tool in geopolitical disputes.

Why It Matters

  • Critical minerals are essential for national security, defence preparedness and advanced manufacturing.
  • Supply disruptions can affect clean energy transitions, semiconductor production and military readiness.
  • Diversifying supply chains has become a strategic priority for the US, EU, Japan, India and Australia.

India’s Position

  • India has identified 30 critical minerals as strategically important.
  • The National Critical Mineral Mission (NCMM) aims to strengthen exploration, mining, processing, recycling and overseas acquisition of critical mineral assets.
  • India is also diversifying imports through partnerships under initiatives such as the Minerals Security Partnership (MSP).

[2026] Which of the following statements about Rare Earth Elements (REEs) and Critical Minerals is/are correct?

1. Modern technological innovations including Artificial Intelligence, robotics and space exploration extensively utilise Rare Earth Elements (REEs).

2. China has the highest share in mining of REEs followed by India.

3. The Government of India launched the National Critical Mineral Mission (NCMM) in 2025 to establish a robust framework for self-reliance in the critical mineral sector.

4. Rare Earth Elements are a set of 13 metallic elements.

(a) 1 and 3 only (b) 3 only (c) 1, 3 and 4 (d) 1, 2 and 4


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