Critical Minerals in India-US Tech Push: 4 Sectors to Watch

As the global push for renewable energy intensifies, critical minerals like lithium, cobalt, and rare earths have become the new oil. The latest India-US technology partnership explicitly includes these minerals as a pillar, with the private sector expected to build resilient, sustainable supply chains. This move could unlock new sources of responsibly mined materials for batteries, EVs, and wind turbines—and reduce the world’s dependence on a handful of dominant processors.

In a significant pivot from diplomatic frameworks to tangible execution, the Indian government has explicitly called upon the private sector to lead the operationalization of its strategic technology partnership with the United States. Speaking at a roundtable in late June 2026, Additional Secretary K Nagaraj Naidu of the Ministry of External Affairs stated that the private sector would play an 'indispensable role' in turning bilateral agreements into real-world outcomes across four critical domains: artificial intelligence, semiconductors, quantum technologies, and critical minerals. The event, organized by the US-India Strategic Partnership Forum (USISPF) in collaboration with the Embassy of India and the Silverado Policy Accelerator, marks a new chapter in the two democracies' efforts to build resilient and trusted technology supply chains.

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As the global push for renewable energy intensifies, critical minerals like lithium, cobalt, and rare earths have become the new oil.

The immediate context is the global scramble for technological sovereignty. The COVID-19 pandemic and subsequent geopolitical tensions exposed the fragility of semiconductor supply chains, heavily concentrated in East Asia. China's dominance in rare earth processing and its aggressive moves in artificial intelligence have further galvanized the West and its allies. India, with its massive talent pool and digital public infrastructure, has been positioning itself as an alternative manufacturing and innovation hub. The US, under successive administrations, has sought to diversify its tech supply base away from China, and India’s large domestic market and democratic values make it a natural partner.

The partnership's scope is sweeping. AI cooperation goes beyond software to encompass the entire stack—from the critical minerals needed for hardware, to semiconductor fabrication, to advanced computing and AI models. Naidu’s remarks signal that the era of government-to-government dialogue has matured into project-focused collaboration where industry will be the engine. Secretary S Krishnan of India’s Ministry of Electronics and IT reinforced this, stating that India is 'emerging rapidly as a global electronics and semiconductor hub' and that 'semiconductor fabrication is now becoming a reality'. He pointed to the next phase of India’s Semiconductor Mission, which has already attracted investment proposals for chip fabrication, packaging, and design.

The implications are profound for global supply chains. By integrating Indian manufacturing with US innovation, the partnership aims to create a 'trusted and resilient partner' in the global technology supply chain. For the semiconductor industry, this could mean new fab facilities in India supported by US technology and investment. For critical minerals, it implies joint ventures in processing rare earths outside of China, potentially in India or third countries. The move dovetails with the US CHIPS Act and other incentive programs that encourage domestic and friendly-shore production.

However, significant challenges remain. India currently has limited semiconductor fabrication capacity; the first real fabs are still under construction. Building a semiconductor ecosystem requires massive capital, specialized talent, and a robust supplier network. Critical mineral processing is environmentally challenging and capital-intensive. The private sector, while ready to seize opportunities, will need clarity on regulatory frameworks, intellectual property protection, and long-term government incentives. The roundtable’s emphasis on moving 'from principles to projects' suggests both governments are aware of the urgency, but the transition will be closely watched by boardrooms and investors.