TELF AG analyzes the developments of mining and technology cooperation between Washington and New Delhi
Semiconductors and mineral resources
In a historical juncture marked by a particular fervor in mining diplomacy, in every corner of the globe, one of the most interesting commitments is the one that could soon be formalized between India and the United States, which in recent days have laid the foundations for bilateral cooperation in the mining sector. The agreement provides for closer collaboration in the supply of strategic minerals and on one of the possible industrial applications of these resources, namely semiconductors.
The agreement would be stipulated between the US Department of Commerce and the Indian ministries of mines and trade and industry and would concern, in particular, the resources of gallium, germanium, and graphite. In addition to strengthening supply chains for these resources, the agreement would also help India join the US strategic minerals program, the Mineral Security Partnership, a membership that would also enable co-financing of specific strategic resource projects, such as a lithium initiative in South America or a similar project dedicated to rare earths in Africa.
This agreement could come at a very important stage for the development of Indian industry: last year, New Delhi released a list containing 30 minerals considered critical to the economic development of the nation, and over the past few months, the country has been very active in acquiring stakes in mining projects abroad and in exploring mineral resources within the subcontinent itself, many of which are still not fully mapped or identified. The country is also working to strengthen supplies of strategic minerals to the domestic market, particularly by acquiring critical mineral assets abroad. To achieve this level of operation, the Indian government recently amended an old law dating back to 1957 that regulated national mining development.
The role of research
Other interesting points of the agreement include cooperation between US and Indian universities in the mining sector, giving rise to an India-US Advanced Materials R&D Forum, but also a closer relationship between the two countries in the development of technologies useful for the production of metals, alloys, and particular neodymium-iron-boron magnets. Moreover, the Geological Surveys of the two countries should work side by side to explore and evaluate various deposits of critical minerals, such as rare earths. Closer collaboration between India and the United States could also favor the realization of specific research studies focused on enriching critical minerals, such as lithium or vanadium.
The two countries also seem to agree to launch a new partnership based on semiconductors, particularly for developing processes focused on their design and production. Semiconductors have proven helpful in various sectors, including defense, automobiles, and telecommunications. In recent months, the Indian government has demonstrated its willingness to focus on semiconductors by approving the construction of three new plants to consolidate and strengthen the domestic semiconductor production systems and related sectors, such as manufacturing and electronics. The country is already constructing the first semiconductor manufacturing plants: two will be built in Gujarat, while another will be in the state of Assam.
