Quad Launches Multi-Billion Dollar Minerals Framework Amid China Tensions

The Quad has launched a significant framework to enhance critical minerals supply chains, investing USD 20 billion. The initiative, primarily to counter China's dominant influence, aims to diversify and secure supply for crucial technologies. Foreign ministers from Quad nations met in New Delhi to finalize plans.

The Quad on Tuesday launched a critical minerals cooperation framework, pledging up to USD 20 billion in public and private capital to bolster supply chains while voicing "grave concerns" over "economic coercion", in a veiled reference to China's export control regime in the sector.

The framework on critical minerals was finalised at a meeting of the grouping's foreign ministers in New Delhi, chaired by External Affairs Minister S Jaishankar and attended by US Secretary of State Marco Rubio, Australian Foreign Minister Penny Wong, and Japanese Foreign Minister Toshimitsu Motegi.

Critical minerals are considered vital for high-end technology products including electric vehicles (EVs), drones, and battery storage. China has been a dominant player in the critical minerals supply chain globally.

India has been looking at a steady supply of rare earth minerals to fuel its economic growth. China accounts for around 70 per cent of global rare earth mining that makes it a very dominant player in the global supply chain of the critical minerals.

In a statement, the Quad reiterated its "grave concerns" over the use of "economic coercion" and non-market policies and practices including arbitrary export restrictions, price manipulation, and disruptions particularly on critical minerals that impact global supply chains.

"We underscore the importance of diversified and reliable global supply chains and the need to avoid reliance on any one country," it said.

"To advance our vision for fair and diversified critical minerals markets, we are pleased to announce the Quad Critical Minerals Framework, which will guide how Quad partners can leverage economic policy tools," the statement said.

The Quad said it will support the development of secure critical minerals supply chains, which are essential for advanced technologies, economic growth, and the resilience of industrial bases.

"Through the Quad Critical Minerals Initiative, Quad partners intend to work together to use economic policy tools and coordinated investment to accelerate the development of diversified and fair critical mineral markets," the grouping said.

"This framework sets out key areas for cooperation among the Quad partners on critical minerals supply chains giving due regard for each partner's domestic policies and priorities," it said.

Under the initiative, the grouping will identify projects operated by companies headquartered in Quad partner countries, or supplying Quad markets, that address critical mineral supply chain gaps.

The Quad will also support strategic critical minerals projects through export credit agencies, development finance institutions, mobilisation of private capital, or other public supporting tools, such as guarantees, loans, equity participation, insurance and subsidies.

It will also be exploring new mechanisms to help mobilise private capital and strengthen critical minerals supply chains in Quad partner countries and regionally.

The Quad nations also welcomed the progress made under the Quad Open Radio Access Networks (Open RAN), especially cooperation under this framework with Palau.

The grouping also affirmed its support for a free and open Indo-Pacific that allows countries to develop resilience and strengthen capacity to determine their own paths.

"To that end, we concur on further enhancing cooperation and advancing concrete initiatives to deliver tangible benefits to the region," it said.

The Quad, comprising India, the US, Australia and Japan, has emerged as a key grouping largely focusing on peace, security and stability in the Indo-Pacific region.

India hosted the meeting in its capacity as the current chair of the coalition.