Kathmandu. India and the United States on Tuesday signed a bilateral agreement to secure supply, mining and processing of critical minerals and rare earth elements.

Indian External Affairs Minister S Jaishankar announced the historic agreement after bilateral discussions and the Quad foreign ministers’ meeting, highlighting its strategic importance in the global scenario.

Stressing that this issue was also discussed at the Quad meeting, he said it was important to secure these resources.

The agreement is aimed at facilitating the supply of critical minerals and rare earth products. According to him, the agreement will cover mining, processing, promotion and related investments. “It will strengthen simple and diversified supply chains and help countries with financing, including financing,” he said.

Describing the agreement as a testament to the strengthening of the partnership between Washington and New Delhi, Jaishankar said there are many opportunities but some challenges in the implementation of the agreement.

US Secretary of State Marco Rubio has highlighted the importance of India to the United States and said the agreement is a concrete example. In the last few days, he has repeatedly highlighted the strategic alliance between the United States and India and the importance of the agreement for national interest.

He said India and the US have reached an agreement with a strategic interest to ensure reliable long-term access to critical minerals and supply chains for the innovation economy.

The agreement comes amid a global effort to reduce dependence among suppliers to diversify its supply chains, noting that critical minerals and rare earth materials are critical components for high-electronics, energy technology, defense systems, and electric vehicles.