IPEF Members Launch Critical Mineral Dialogue to Strengthen Sector Cooperation

The Indo-Pacific Economic Framework (IPEF), which includes 14 countries like India and the US, has initiated a dialogue on critical minerals. This discussion aims to address regulatory and technological challenges in the sector to boost collaboration, according to an official statement. This initiative runs alongside an action plan team focused on critical minerals under the supply chain council.

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The IPEF was launched on May 23 in Tokyo by the US and other Indo-Pacific partners. The framework involves four pillars: trade, supply chains, clean economy, and fair economy issues such as tax and anti-corruption. India participates in all but the trade pillar. Member countries are negotiating separate agreements on these topics.

Critical Minerals Dialogue

The critical mineral dialogue began 6-8 months ago among IPEF countries. The goal is to collectively assess resource maps, regulations, technological needs, and recycling technologies. "At the end of this dialogue, the members will come out with recommendations," stated an official. This effort could reduce India's reliance on China for these minerals.

Australia leads the action plan team with a focus on battery production due to its significant lithium resources. Critical minerals like cobalt, copper, lithium, nickel, and rare earths are essential for clean energy technologies such as wind turbines and electric vehicles. These minerals are particularly important for electric car batteries.

The IPEF bloc comprises Australia, Brunei Darussalam, Fiji, India, Indonesia, Japan, the Republic of Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, the US, and Vietnam. Together, they represent 40% of global GDP and 28% of global trade in goods and services.

The aim is to ensure that critical mineral availability in the region supports a resilient supply chain for batteries. This initiative is expected to enhance cooperation among member nations by addressing shared challenges and opportunities in the critical minerals sector.