India and US deepen tech cooperation via Pax Silica (critical minerals) and AI Opportunity Partnership. UPSC cares because critical minerals and AI are vital for economic and strategic growth.
As global economies increasingly depend on advanced technologies, two critical areas have emerged as national priorities: securing supplies of critical minerals and building strong advanced manufacturing capabilities.
China's dominance in these sectors poses a strategic challenge. According to the International Energy Agency (IEA), China controls approximately 70% of the refining market for 19 out of 20 most strategically important critical minerals. China also produces 94% of rare-earth-containing permanent magnets—materials essential for electronics, defense systems, renewable energy, and many other industries.
This dominance gives China significant leverage: it can influence global prices, create supply bottlenecks, and use mineral supplies as a negotiating tool in international relations.
Pax Silica is a US-led initiative designed to reduce member nations' dependence on China for critical minerals, particularly rare earth elements (REEs). The initiative aims to break what the Pax Silica factsheet calls "coercive dependencies" in global supply chains.
Initial Launch: The first group of countries signed the Pax Silica declaration in mid-December 2025.
India's Entry: India formally joined Pax Silica on February 20, 2026, by signing the declaration at the AI Impact Summit. India was initially excluded from the first group but has now become part of this alliance of nations.
Alongside joining Pax Silica, India and the US signed the AI Opportunity Partnership, which includes:
The joint statement emphasizes: "The two sides share the belief that a significant risk facing the free world is not the advancement of AI, but the failure to lead it." This reflects both nations' concern that if they do not lead AI development, others (implicitly China) will.
These partnerships are expected to boost India's own initiatives:
These agreements come after India and the US agreed on a framework for a trade agreement, signaling strengthened economic ties. The partnership reflects a renewal of US-India cooperation centered on technology, security, and energy—all areas where both nations see China as a strategic challenge.
While these partnerships offer significant benefits, India must be cautious about:
Critical Minerals & Supply Chain Security
India-US Strategic Partnership
India's Domestic Programs
Strategic Autonomy
✓ Pax Silica: US-led alliance to reduce China's dominance in critical minerals
✓ India's Role: Joined February 20, 2026; part of broader tech cooperation with US
✓ AI Partnership: Includes investment, capital flows, and R&D collaboration
✓ Strategic Goal: Counter China's leverage in supply chains and technology
✓ Caution: India must protect its own tech ecosystems and maintain strategic autonomy
Q1. Consider the following statements regarding the Pax Silica initiative: 1. It is a US-led initiative aimed at reducing dependencies on a single nation for critical mineral supplies. 2. India was among the initial signatories of the Pax Silica declaration in mid-December of last year. Which of the statements given above is/are correct?
The option at index 0 is correct because statement 1 is accurate. Pax Silica is indeed a US-led initiative designed to diversify critical mineral supply chains and reduce reliance on single countries. The option at index 1 is incorrect because statement 2 is false. India signed the Pax Silica declaration on February 20, on the sidelines of the AI Impact Summit, and was not among the initial signatories in mid-December.