{"id":53340,"date":"2025-07-04T10:00:59","date_gmt":"2025-07-04T04:30:59","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=53340"},"modified":"2025-07-04T11:38:33","modified_gmt":"2025-07-04T06:08:33","slug":"quad-launches-critical-minerals-initiative-to-reduce-dependence-on-china","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/quad-launches-critical-minerals-initiative-to-reduce-dependence-on-china\/","title":{"rendered":"Quad Launches Critical Minerals Initiative to Reduce Dependence on China"},"content":{"rendered":"<h2><b>Critical Minerals Latest News<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/quad\/\" target=\"_blank\"><span style=\"font-weight: 400;\">Quad<\/span><\/a><span style=\"font-weight: 400;\"> nations\u2014India, Australia, Japan, and the US\u2014have launched a joint initiative to secure critical mineral supply chains amid growing concerns over China\u2019s dominance and potential disruptions.<\/span><\/li>\n<\/ul>\n<h2><b>Quad Foreign Ministers Meet in Washington, DC<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The second Quad foreign ministers\u2019 meeting took place in Washington, DC.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">During the meeting, members reaffirmed its commitment to four key areas: <\/span><b>maritime and transnational security, economic prosperity and security, critical and emerging technologies, and humanitarian assistance<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The ministers strongly condemned the Pahalgam terror attack, urging that the perpetrators, organisers, and financiers be brought to justice promptly.<\/span><\/li>\n<\/ul>\n<h3><b>Launch of Quad Critical Minerals Initiative<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The ministers launched the Quad Critical Minerals Initiative to secure supply chains and reduce dependency on China for essential resources.<\/span><\/li>\n<\/ul>\n<h3><b>Focus on Maritime and Logistics Cooperation<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The participating ministers also announced:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The first Quad Indo-Pacific Logistics Network field training exercise to be held this year.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The launch of the Quad Ports of the Future Partnership in Mumbai later this year.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><b>Quad Critical Minerals Initiative<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India, Australia, Japan, and the United States have jointly launched the <\/span><b>Quad Critical <\/b><span style=\"font-weight: 400;\">Minerals Initiative to build resilient and diversified supply chains for critical minerals vital to modern technologies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The initiative will enhance cooperation on <\/span><span style=\"font-weight: 400;\">securing and diversifying supply chains, recovering critical minerals from e-waste, and boosting private sector investment to strengthen supply chain resilience<\/span><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Quad members expressed serious concerns about the growing dependency on China for processing and refining critical minerals, warning of risks like economic coercion, price manipulation, and supply disruptions.<\/span><\/li>\n<\/ul>\n<h2><b>China\u2019s Dominance in Critical Minerals<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Critical minerals, including rare earth elements (REEs), are essential for advanced technologies like semiconductors, EVs, and jet fighters.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">China dominates the production of neodymium-iron-boron (NdFeB) magnets, which are vital for EV motors, power steering, braking, and more.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Though rare earth metals are globally available, China leads in efficient processing\u2014a position once held by the US and Japan.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Japan has revived part of its mineral processing industry through policy measures, while the US and India remain largely dependent on Chinese exports.<\/span><\/li>\n<\/ul>\n<h3><b>Supply Chain Barriers Amid Geopolitical Tensions<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In response to US tariffs under President Trump, China imposed bureaucratic barriers and later restricted exports of key critical minerals.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">China has also restricted the export of several heavy rare earth elements and high-tech materials with potential military uses, intensifying supply chain concerns globally.<\/span><\/li>\n<\/ul>\n<h2><b>India\u2019s EV Industry Hit by Chinese Export Curbs<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India\u2019s emerging electric vehicle sector is facing production setbacks due to China\u2019s restrictions on exporting rare earth magnets crucial for EV motors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Despite multiple requests, China has not approved any applications from Indian carmakers to source critical minerals, raising serious supply concerns.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">China mandates end-user licences and local government endorsements ensuring minerals won\u2019t be used for military purposes\u2014a major hurdle for Indian firms.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Beijing is now urging foreign carmakers to purchase entire electric motor assemblies from Chinese suppliers, rather than just magnets.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">China has granted export permits to magnet producers serving companies like Volkswagen, reportedly after intense lobbying\u2014something Indian firms have struggled to match.<\/span><\/li>\n<\/ul>\n<h2><b>G7 Action Plan Laid the Groundwork for Quad Critical Minerals Push<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Quad Critical Minerals Initiative builds on the <\/span><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/g7\/\" target=\"_blank\"><span style=\"font-weight: 400;\">G7<\/span><\/a><span style=\"font-weight: 400;\"> Critical Minerals Action Plan announced in Canada, which India also endorsed.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The G7 plan commits to partnering with emerging markets and developing countries to diversify supply chains and promote local value addition.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">G7 finance ministers pledged support for the World Bank-led Resilient and Inclusive Supply Chain Enhancement (RISE) initiative.<\/span><\/li>\n<\/ul>\n<h3><b>India\u2019s National Critical Mineral Mission\u00a0<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India\u2019s Mines Ministry proposed external funding via RISE for its \u20b916,300 crore <\/span><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/government-launches-national-critical-minerals-mission-to-boost-green-energy-transition\/\" target=\"_blank\"><span style=\"font-weight: 400;\">National Critical Mineral Mission<\/span><\/a><span style=\"font-weight: 400;\">, which aims to strengthen exploration, overseas acquisition, R&amp;D, and recycling.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India joined the US-led <\/span><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/mineral-security-partnership\/\" target=\"_blank\"><span style=\"font-weight: 400;\">Minerals Security Partnership (MSP)<\/span><\/a><span style=\"font-weight: 400;\"> in June 2023.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The MSP was formed in June 2022 with all G7 countries and a few others like Australia, South Korea, Finland, and Sweden.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">During PM Modi\u2019s visit to Washington in February 2025, India and the U.S. signed the <\/span><b>T<\/b><span style=\"font-weight: 400;\">ransforming <\/span><b>R<\/b><span style=\"font-weight: 400;\">elationship <\/span><b>U<\/b><span style=\"font-weight: 400;\">tilizing <\/span><b>S<\/b><span style=\"font-weight: 400;\">trategic <\/span><b>T<\/b><span style=\"font-weight: 400;\">echnology (TRUST) initiative to collaborate on mineral extraction and processing technologies.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/india-us-trust-initiative\/\" target=\"_blank\"><span style=\"font-weight: 400;\">TRUST<\/span><\/a><span style=\"font-weight: 400;\"> agreement targets key minerals like lithium and rare earth elements, aiming to co-develop extraction and processing capabilities.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><b>Source:<\/b> <a href=\"https:\/\/indianexpress.com\/article\/business\/quad-supply-chains-critical-minerals-china-10103507\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">IE<\/span><\/a><span style=\"font-weight: 400;\">\u00a0| <\/span><a href=\"https:\/\/indianexpress.com\/article\/upsc-current-affairs\/upsc-essentials\/knowledge-nugget-quad-critical-minerals-initiative-partnership-upsc-10101793\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">IE <\/span><\/a><span style=\"font-weight: 400;\">| <\/span><a href=\"https:\/\/www.livemint.com\/politics\/news\/quad-launches-critical-minerals-initiative-to-counter-chinas-supply-chain-dominance-11751468501680.html\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">LM<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Quad nations launch an initiative to diversify supply chains for critical minerals amid China\u2019s growing control over resources.<\/p>\n","protected":false},"author":18,"featured_media":53368,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[1322,60,22,59],"class_list":{"0":"post-53340","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-critical-minerals","9":"tag-mains-articles","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/53340","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=53340"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/53340\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/53368"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=53340"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=53340"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=53340"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}