US Treasury Secretary Scott K H Bessent on January 12 convened a high-level meeting of finance ministers in Washington to discuss ways to secure and diversify global supply chains for critical minerals, including rare earth elements.

The meeting brought together finance ministers from G7 nations Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, along with the European Union. India, Australia, South Korea, and Mexico were also invited to take part. India was represented by Union Minister for Railways, Information and Broadcasting, and Electronics and Information Technology Ashwini Vaishnaw. 

Senior US officials and industry leaders also addressed the meeting. These included US Trade Representative Jamieson Greer, Export-Import Bank President John Jovanovic, and JP Morgan Managing Director Jay Horine.

During the discussions, countries expressed a shared urgency to fix weaknesses in critical mineral supply chains. The United States outlined steps it has already taken, and future investments planned to build secure and diversified supply networks.

Secretary Bessent said countries should focus on reducing risks rather than cutting ties. He said supply chains for critical minerals are too concentrated and vulnerable to disruption. He urged nations to work together quickly and take decisive action.

Later, Bessent posted on X that he was encouraged by the strong commitment shown by participants to address supply chain risks. He said nations understand the need for practical solutions and cooperation.

Minister Ashwini Vaishnaw expressed India’s strong support to the agenda of the meeting. In a post on X, he said strengthening critical mineral supply chains is vital for India’s manufacturing growth and its fast-expanding electronics sector.

Speaking to news agency ANI, he said countries shared their experiences and the steps they are taking to make supply chains more resilient. He said there was strong focus on technology for refining and processing mineral ores to ensure long-term access to high-quality rare earth materials.

The minister said discussions also covered funding for new projects, sharing of technology, and cooperation in research. Recycling of minerals from waste products was highlighted as an important solution. He described the meeting as positive and forward-looking. India’s participation in comes a month after it was left out of the US-led Pax Silica initiative when it was first announced. 

On Monday, newly appointed US Ambassador to India Sergio Gor said that India will be invited to join Pax Silica in February. His remarks signal an easing of tensions and a renewed push for closer cooperation between India and the United States on technology and supply chains.

Pax Silica is a US-led effort to secure the silicon and semiconductor supply chain that supports chips and AI. It is also shaped by concerns in Washington about China’s dominant position across parts of the critical minerals and processing chain that feed into advanced technologies. 

India’s expected invitation next month signals that the United States wants New Delhi closer in these supply chain partnerships, as both sides look to reduce dependence on China for key inputs and build trusted alternatives with like-minded countries.

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