Context

• The contemporary global energy and geopolitical landscape is rapidly evolving, driven by shifting power dynamics, technological innovation, and the pressing need for climate action.
• Against this backdrop, recent diplomatic overtures between the United States and India signal a pivotal opportunity to solidify a forward-looking strategic partnership.
• Highlighted by U.S. Vice-President J.D. Vance’s emphasis on deeper collaboration in energy and defence, and mirrored by India's articulations, this renewed engagement is not simply about short-term alignment but the construction of a robust framework for long-term cooperation.
• Though these areas of convergence are not new, the urgency and complexity of today’s challenges demand a deeper, more strategic investment in bilateral ties.

Energy Security: A Strategic Imperative for India

• India's pursuit of energy security is grounded in three critical imperatives: ensuring the availability of resources at predictable costs, safeguarding supply chain integrity, and promoting sustainability.
• These objectives are not merely operational but foundational to India’s broader development and climate strategies.
• The nexus between nuclear energy and critical minerals presents a fertile ground for collaboration with the United States, combining India’s growing demand and policy innovation with American capital and technological prowess.

The Building Blocks of India-US Energy Future

• Critical Minerals: Building the Architecture of Resilience
  • The transition to clean energy is as much about electrons as it is about elements.
  • Critical minerals such as lithium, cobalt, and rare earth elements underpin technologies ranging from electric vehicles to defence systems and renewable energy infrastructure.
  • China’s near-monopoly over rare earth processing, controlling close to 90% of global capacity, has exposed the fragility of existing supply chains and underscored the strategic vulnerability of nations dependent on these resources.
  • In response, India and the U.S. signed a memorandum of understanding in 2024 aimed at diversifying global critical mineral supply chains.
• Nuclear Energy: A Catalyst for Decarbonisation and Industrial Growth
  • India’s surging electricity demand, coupled with its net-zero ambitions, necessitates a diversified, low-carbon energy portfolio.
  • Nuclear power emerges as a critical pillar in this matrix, offering reliable baseload power that complements intermittent sources like solar and wind.
  • Despite its ambitious goal of achieving 100 GW of nuclear capacity by 2047, India currently operates with just over 8 GW, necessitating a dramatic acceleration in deployment.

Guiding Principles for An Effective Partnership on Critical Minerals

• A Holistic Perspective
  • Critical minerals should be viewed as enablers across multiple strategic sectors, not merely within the confines of mining.
  • This broader lens will facilitate cross-sectoral collaboration and long-term innovation between Indian and American institutions.
• Bilateral and Plurilateral Synergies
  • The establishment of supply guarantees and collaborative frameworks must drive the partnership.
  • The creation of an India-U.S. Critical Minerals Consortium could facilitate joint exploration and processing initiatives.
  • Moreover, leveraging plurilateral platforms like the Quad, including Japan and Australia, could exponentially increase technological capabilities and resource access.
• Long-Term Commitment
  • Unlike solar farms or battery plants, which can be operational within a few years, mining and processing infrastructure take decades to develop.
  • A 20-year roadmap with interim milestones is essential. In this context, the proposed India-U.S. Mineral Exchange, a blockchain-enabled platform for transparent trade and traceability, could set global benchmarks for ethical and resilient supply chains.
  • Additionally, establishing joint strategic stockpiles and co-investing in third-country projects across resource-rich regions such as Africa and Latin America can shield both nations from geopolitical shocks.

Necessary Reforms for an Effective Nuclear Collaboration

• Streamlined Deployment
  • Reducing the construction timeline of nuclear projects from nine to six years can significantly reduce costs and improve investor confidence.
  • This requires standardized reactor designs, expedited approvals, and skilled project execution.
• Private Sector Integration
  • Unlocking private capital is key. Small Modular Reactors (SMRs), with lower upfront costs and siting flexibility, offer a viable path forward.
  • However, their bankability depends on clear offtake mechanisms, risk mitigation instruments, and long-term purchase agreements.
  • India must reorient its financial systems, given that the projected investment requirement for 100 GW of nuclear power could reach $180 billion.
• Legislative and Regulatory Reform
  • The amendment of India’s Civil Liability for Nuclear Damage Act, 2010 is vital to enabling private investment and international collaboration.
  • The recent approval for U.S.-based Holtec International to transfer SMR technology to Indian firms exemplifies the promise of Indo-U.S. technological synergy.
  • However, safety must remain paramount. As India positions itself to lead in SMR manufacturing, robust protocols for waste management and decommissioning must be integral to the strategy.

The Way Forward: Strategic Vision in a Volatile World

• The April 2025 edition of the IMF’s World Economic Outlook points to an increasingly uncertain global environment marked by trade tensions and economic fragmentation.
• In this context, a resilient, long-term India-U.S. energy partnership offers mutual strategic assurance.
• India’s growth trajectory and the U.S.’s technological ecosystem are inherently
• Together, they can build not just a bilateral relationship, but a global coalition for energy resilience and sustainability.
• Such a partnership must move beyond symbolic agreements and embrace the plumbing of cooperation, investment tracking systems, workforce training, data-sharing frameworks, and innovation platforms like the U.S.-India Initiative on Critical and Emerging Technology (iCET).
• These institutional frameworks are essential to translating high-level intent into tangible outcomes.

Conclusion

• The foundation for a robust India-U.S. partnership on energy and critical minerals has already been laid.
• What remains is the commitment to operationalise this vision with long-term strategic clarity and pragmatic action.
• As India hosts the upcoming Quad summit and assumes greater leadership in global energy governance, this moment is ripe for embedding cooperation into durable institutions and cross-border frameworks.
• A resilient future demands foresight, investment, and trust, and the India-U.S. partnership is uniquely positioned to deliver on all three.