36 JUNE 2025 | THE FOREIGN SERVICE JOURNAL A Natural Fit for Critical Minerals Why is the Quad emerging as a strategic force in critical minerals diplomacy? The answer lies in its members’ supply chains, trade alliances, and business investments. Supply Chain Synergies. The Quad nations are naturally positioned to strengthen global critical minerals supply chains, each contributing a key piece of the puzzle. Australia leads the world in lithium mining, producing 37 percent of global supply, a resource vital for electric vehicles (EVs), drones, and battery storage. The country also holds the world’s largest zinc reserves (28 percent) and is a crucial source of germanium and gallium, both essential for semiconductors— the foundation of modern electronics, from smartphones to advanced defense systems. While Australia has a competitive advantage in extraction, Japan is a leader in mineral processing, refining rare earth elements, lithium, cobalt, and nickel, all of which are essential for high-tech industries. Meanwhile, the United States and India are focusing on expanding domestic mining and refining operations, with government-backed initiatives aimed at reducing dependence on Chinese-controlled supply chains. Further down the supply chain, the United States boasts an advanced industrial base for semiconductor and battery production, while India is rapidly expanding its own capacity in these sectors. Together, the Quad nations are uniquely positioned to leverage their respective strengths in building a secure, resilient, and self-sufficient mineral supply chain. Trade Alliances. The Quad nations share more than just supply chain synergies; they also maintain strong trade alliances that reinforce their economic cooperation. The United States has a free trade agreement with Australia, a critical minerals agreement with Japan, and recently initiated negotiations for a multisector bilateral trade agreement with India following Prime Minister Narendra Modi’s February 2025 state visit. Besides the U.S., Quad nations have trade alliances with each other. Australia and India are linked through the IndiaAustralia Economic Cooperation and Trade Agreement, while Australia and Japan benefit from the Japan-Australia Economic Partnership Agreement. Additionally, India and Japan maintain trade relations through the Comprehensive Economic Partnership Agreement. All four Quad members also participate in the Minerals Security Partnership, a U.S. State Department initiative focused on securing global mineral supply chains. These deep trade ties not only enhance economic resilience among Quad nations but also position the Quad as a viable counterweight to China’s mineral dominance. Quad-Backed Business Investments. Quad partners are making strategic investments in one another’s critical minerals supply chains, with a particular focus on strengthening the U.S. industrial base. The U.S. Department of Defense is backing Lynas Rare Earths, an Australia-headquartered company, to establish a rare earth processing facility in Texas using Australian-mined materials. India is also deepening its footprint in U.S. supply chains, with Epsilon Advanced Materials investing $650 million in a graphite processing plant in North Carolina to support lithium-ion battery production. Meanwhile, Japan is reinforcing rare earth access through a supply chain agreement between California-based MP Materials and Sumitomo Corporation, ensuring a stable flow of rare earth elements for electric vehicle motors. The U.S. Role in Fortifying Quad’s Mineral Diplomacy The Quad has the potential to establish a powerful critical minerals trifecta by integrating supply chains, securing strategic investments, and strengthening trade alliances. The missing link, however, lies in greater diplomatic coordination among Washington policymakers and the U.S. Foreign Service stationed in Quad nations to bolster each other’s critical minerals security. It is important to drive investment and deepen partnerships to ensure mining and processing remain within Quad economies or the larger Quad supply chain—to establish a mineral supply chain independent of China. Here are four recommendations on how the U.S. can support these goals: Develop Lithium Processing Capacity Within the Quad. The U.S. should help to facilitate the development of alternaThe missing link lies in greater diplomatic coordination among Washington policymakers and the U.S. Foreign Service stationed in Quad nations to bolster each other’s critical minerals security.
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