India joins US-led Pax Silica alliance

India has joined the US-led Pax Silica alliance, which aims to secure a supply chain for artificial intelligence, chips, and critical minerals.

The Pax Silica declaration was signed on the sidelines of the AI Impact Summit currently underway in New Delhi.

Australia, Greece, Israel, Japan, Qatar, South Korea, Singapore, the UAE, and the UK are the other signatories of the declaration, according to the US State Department.

Canada, the European Union (EU), the Netherlands, the Organization for Economic Cooperation and Development (OECD) and Taiwan are non-signatory participants.

“India will be a key contributor to the Pax Silica alliance,” US Ambassador to India Sergio Gor said at the signing ceremony.

Earlier this month, Foreign Minister S. Jaishankar participated in the Critical Minerals Ministerial convened by US Secretary of State Marco Rubio in Washington.

Jaishankar had extended New Delhi’s support to the Forum on Resource, Geostrategic Engagement (FORGE), an initiative launched at the inaugural Critical Minerals Ministerial.

India has launched programs, including the National Critical Minerals Mission, and announced rare earth corridors (specialized industrial zones) in the states of Odisha, Kerala, Andhra Pradesh, and Tamil Nadu for the mining, processing, research, and manufacturing of Rare Earth Permanent Magnets (REPMs) in its federal budget.

REPMs are vital components in electric vehicle motors, wind turbine generators, consumer and industrial electronics, aerospace systems, defense equipment, and precision sensors.

New Delhi’s decision to join Pax Silica gives it a chance to attract billions of dollars in AI and technology investment and cement its role as an alternative to China, the Hindustan Times reported.

India has a strong rare-earth resource base, but domestic production of permanent magnets is in its developmental stage. New Delhi imports 85%-90%of its rare earth requirements from China. Beijing accounts for more than 60% of global rare earth processing.

India’s consumption of permanent magnets is expected to double by 2030. New Delhi signed a joint declaration of intent for cooperation in critical minerals and metals during French President Emmanuel Macron’s visit this week.

It is also exploring rare earth mining pacts with Russia, Australia, Argentina, Chile, and several African countries, Reuters reported in January.