India and Japan have significantly deepened their economic and strategic engagement through a dedicated focus on securing critical minerals supply chains, reflecting a convergence of interests in economic resilience, technological advancement, and geopolitical security.

According to a factsheet released by India’s Ministry of External Affairs (MEA), both nations are working closely through a range of collaborative platforms, including the Mineral Security Partnership (MSP), the Indo-Pacific Economic Framework (IPEF), and the Quad Critical Minerals Initiatives. These multilateral mechanisms not only aim to diversify supply chains but also to build a more secure and sustainable economic architecture in the Indo-Pacific region.

A major milestone in this cooperation was achieved in August 2025 when the Ministry of Mines of India and Japan’s Ministry of Economy, Trade and Industry (METI) signed a Memorandum of Cooperation (MoC) in the field of mineral resources.

This agreement lays a formal framework for bilateral collaboration in exploration, mining, refining, processing, and recycling of critical minerals essential for cutting-edge technologies. Key among these minerals are rare earth elements, lithium, cobalt, and nickel, which are vital for the production of electric vehicle (EV) batteries, renewable energy technologies, semiconductors, and other advanced manufacturing sectors.

An important outcome of this partnership is the expanded role of the Japanese trading and investment company Toyota Tsusho Corporation, which is collaborating with India on a rare earth refining project in Andhra Pradesh.

This project is designed to establish a secure, stable, and long-term supply chain for rare earth materials, reducing dependence on existing global monopolies and supply chain bottlenecks. Given that rare earths are critical for defence applications, clean energy technologies, and advanced electronics, the Andhra Pradesh initiative is being positioned as a cornerstone of India-Japan collaboration in high-technology industries.

Further reinforcing cooperation, India and Japan have welcomed initiatives for promoting battery supply chain development, which will directly support the transition to clean energy and electric mobility.

A business matchmaking and roundtable event organised in India by the Japan External Trade Organisation (JETRO) and the Government of Japan brought together over 70 companies and government organisations from both countries. This platform enabled industry-level collaboration, fostering partnerships in battery manufacturing, recycling, and mineral supply management, with the aim of building resilient and diversified value chains across Asia.

The broader framework of the India-Japan Special Strategic and Global Partnership continues to provide a strong anchor to these developments. The MEA emphasised that this partnership, built on shared democratic values, trust, and mutual respect, is not only strengthening bilateral ties but also contributing to economic security and regional stability.

In particular, economic security cooperation has become a key pillar of the partnership, driven by shared concerns over global supply chain vulnerabilities, the weaponization of commodities, and strategic competition in high-technology domains.

In line with this agenda, India and Japan launched the first Dialogue on Economic Security in November 2024 at the Foreign Secretary/Vice Foreign Minister level. This dialogue covered issues relating to strategic trade, technology cooperation, and economic linkages with foreign policy and security dimensions. Through this, both sides underscored their commitment to building a rules-based economic order in the Indo-Pacific and beyond, ensuring that economic dependencies do not translate into strategic vulnerabilities.

Importantly, this intensification of India-Japan cooperation was highlighted during Prime Minister Narendra Modi’s two-day official visit to Japan from August 29 to 30, 2025, where he participated in the 15th India-Japan Annual Summit.

The meeting underscored the strategic importance of economic security, technology partnerships, and critical minerals supply chain resilience. As part of his broader diplomatic agenda, Prime Minister Modi is scheduled to travel to Tianjin, China, immediately following his Japan visit, to attend the Shanghai Cooperation Organisation (SCO) Summit, further signifying India’s intention to balance strategic partnerships across multiple regions while consolidating ties with trusted partners like Japan.

The MEA factsheet concluded by stressing that India and Japan’s joint efforts in critical minerals, battery supply chains, and economic security dialogues represent a forward-looking vision for cooperation in a challenging global environment. By recognising their shared interests in securing critical economic pathways, New Delhi and Tokyo have demonstrated both political will and strategic foresight.

Their collaboration, involving governments, industries, and academic institutions, reflects a holistic commitment to innovation, sustainability, and resilience in global supply chains. In doing so, India and Japan are not only safeguarding their national economic interests but also contributing to regional prosperity and global stability.

Based On ANI Report