New Delhi: India and Japan have taken significant steps to bolster the resilience of critical minerals supply chains, reflecting the growing importance of these resources for economic security and technological development.

In August 2025, the Ministry of Mines of India and Japan’s Ministry of Economy, Trade and Industry (METI) signed a Memorandum of Cooperation (MoC) aimed at enhancing collaboration in mineral resources. The agreement seeks to ensure a stable and secure flow of essential materials, reducing dependency on limited sources globally.

A key aspect of this partnership is the collaboration on Toyota Tsusho’s rare earth refining project in Andhra Pradesh. The project aims to establish a reliable supply of rare earth materials, which are crucial for high-tech industries, electronics, and clean energy applications.

India and Japan are also promoting battery supply chain cooperation. A business matchmaking and roundtable event organized by the Japan External Trade Organization (JETRO) in India brought together over 70 companies and government representatives to discuss joint initiatives in critical minerals and related technologies.

The collaboration is part of the broader India-Japan Special Strategic and Global Partnership, anchored in shared values and mutual respect. Both nations have emphasized economic security as a core element, highlighting the need to diversify supply sources amid global concerns over concentrated production of rare earth minerals. The International Energy Agency has warned that over-reliance on a few countries for critical minerals could disrupt global economic stability.

Through this strengthened partnership, India and Japan aim to navigate the complexities of global supply chains, ensuring long-term economic security and resilience while advancing shared technological and industrial interests.