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India Confirms Its Entry into U.S.-Backed Pax Silica Alliance

(MENAFN) India has formally entered the US-led Pax Silica alliance, a multilateral initiative designed to safeguard global supply chains for artificial intelligence, semiconductors, and critical minerals — signing the declaration on the sidelines of the AI Impact Summit currently underway in New Delhi.

The US State Department confirmed that Australia, Greece, Israel, Japan, Qatar, South Korea, Singapore, the UAE, and the UK are also signatories to the declaration. Canada, the European Union (EU), the Netherlands, the Organization for Economic Cooperation and Development (OECD), and Taiwan are participating in a non-signatory capacity.

At the signing ceremony, US Ambassador to India Sergio Gor declared: "India will be a key contributor to the Pax Silica alliance."

New Delhi's entry into the alliance positions it as a strategic alternative to China in the global technology supply chain — a move that could unlock billions of dollars in AI and technology investment, media reported.

The development builds on deepening US-India cooperation on critical minerals. Earlier this month, Indian Foreign Minister S. Jaishankar attended the Critical Minerals Ministerial convened by US Secretary of State Marco Rubio in Washington, where he extended India's support to the Forum on Resource, Geostrategic Engagement (FORGE) — a flagship initiative launched at the inaugural ministerial.

Domestically, India has moved aggressively to build its critical minerals ecosystem. The government has launched the National Critical Minerals Mission and designated rare earth corridors — specialized industrial zones — across the states of Odisha, Kerala, Andhra Pradesh, and Tamil Nadu, dedicated to the mining, processing, research, and manufacturing of Rare Earth Permanent Magnets (REPMs). These components are essential to electric vehicle motors, wind turbine generators, consumer and industrial electronics, aerospace systems, defense equipment, and precision sensors.

Despite possessing a substantial rare earth resource base, India's domestic permanent magnet production remains in its early stages. The country currently imports between 85% and 90% of its rare earth requirements from China, which controls over 60% of global rare earth processing — a dependency New Delhi is actively working to reduce.

With India's consumption of permanent magnets projected to double by 2030, the urgency of diversification is mounting. On the diplomatic front, New Delhi signed a joint declaration of intent for critical minerals cooperation during French President Emmanuel Macron's visit this week, and is separately exploring rare earth mining agreements with Russia, Australia, Argentina, Chile, and several African nations, Reuters reported in January.

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