Quad Partners Launch Critical Minerals Initiative to Counter China

The United States, Australia, India, and Japan launched the Quad Critical Minerals Initiative to counter China’s dominance in critical minerals.

July 02, 2025Clash Report

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The United States announced the launch of a critical minerals initiative with Australia, India and Japan on Tuesday as part of efforts to counter China, although ties between the partners have been strained by trade frictions and other disagreements.

The four countries, known as the Quad, share concerns about China's growing power and dominance of critical minerals, but relations have been tested by U.S. President Donald Trump's global tariff offensive which has spared none of the members.

The foreign ministers of the Quad countries (U.S., India, Japan, and Australia) have launched the Quad Critical Minerals Initiative during talks in Washington. They described the initiative as a significant step to strengthen economic security and collective resilience by collaborating on securing and diversifying critical minerals supply chains. The move comes at a time when the critical minerals sector is dominated by China, raising concerns over supply chain vulnerability.

Indian Foreign Minister Subrahmanyam Jaishankar expressed the success of the meeting on social media, calling it "very productive." U.S. Secretary of State Marco Rubio echoed this sentiment, emphasizing that it was time for the Quad nations to "deliver action" on specific issues, with the focus being on critical minerals. Rubio highlighted that 30-40 companies from Quad countries were set to meet at the State Department to discuss cooperation, specifically on how to diversify critical mineral supply chains.

Shifting Focus in U.S.-Quad Relations

The Washington meeting also served as a reminder of the Quad’s growing importance. With Trump having been distracted by other global issues, including the Israel-Iran conflict, the meeting offered a renewed opportunity for the U.S. to focus on the Indo-Pacific region, where the Quad plays a pivotal role. In January, the Quad announced it would meet regularly to prepare for a leaders' summit in India later this year.

During the talks, Rubio held bilateral meetings with Japan’s Takeshi Iwaya, Jaishankar, and Australia’s Penny Wong. Wong described the second Quad ministerial this year as a "signal of the importance of our partnership and the urgency of the challenges we face."

Trade and Defense Integration

The meeting also addressed ongoing trade discussions. Trump indicated that Washington could reach a trade deal with India, which could help U.S. companies compete in the Indian market and result in lower tariffs for New Delhi. However, Trump was less optimistic about a trade deal with Japan, setting a July 9 deadline for higher tariffs.

Jaishankar mentioned that the trade talks were progressing, with hopes of reaching a successful conclusion, but emphasized that such negotiations would require "give and take" from both sides. Additionally, after the Quad meeting, Jaishankar visited the Pentagon, where Defense Secretary Pete Hegseth expressed hope that U.S.-India defense integration efforts could be strengthened.

Tensions Between India and Pakistan

Tensions between India and Pakistan have also added complexity to the Quad’s agenda. India has rejected Trump’s claim that his intervention and threats helped avert a conflict between the two nations after militants attacked Indian tourists in Kashmir. Jaishankar reiterated that trade was not a factor in the ceasefire agreement with Pakistan, but acknowledged that "relationships will never be free of issues."

The Quad diplomats condemned the April 22 attack in India-administered Kashmir that resulted in 26 fatalities, with India blaming Pakistan for the attack, which Pakistan denied. This incident further escalated the India-Pakistan rivalry, which culminated in a ceasefire announced on May 10.

U.S.-Japan Relations and Defense Spending

The Quad talks also highlighted some tensions within the U.S.-Japan relationship. Japan postponed its annual ministerial meeting with the U.S. State and Defense Departments, reportedly due to U.S. pressure for Japan to increase its defense spending beyond previous requests. The move reflected growing frustrations within Japan over U.S. demands on defense expenditures, which have strained bilateral ties.

Experts, including Nicholas Szechenyi of the Center for Strategic and International Studies, noted that U.S.-Japan relations appeared to have lost momentum since February, when both leaders celebrated a "golden age" in ties. Additionally, recent concerns over the AUKUS project, a major defense deal between Australia, the U.S., and the UK to provide nuclear-powered submarines, have raised anxieties in both Japan and Australia.

Quad Partners Launch Critical Minerals Initiative to Counter China