Why the G7 Needs India in Its Critical Minerals Strategy
The recent invitation to India to participate in a G7 meeting on critical minerals may look routine on the surface, but it marks an important shift in how global supply chains are being planned. Until now, discussions on critical minerals were largely focused on countries that mine them. By bringing India into the conversation, the G7 is acknowledging that the real challenge is not just where minerals come from, but how they are processed, moved, and finally used.
Critical minerals such as lithium, cobalt, nickel, graphite and rare earth elements are essential for electric vehicles, renewable energy systems, electronics, and modern defence equipment. The problem facing the G7 is that a large part of the world’s refining and processing capacity for these minerals is concentrated in one country, China. Even when minerals are mined elsewhere, they often pass through Chinese processing facilities before reaching global markets. This creates a major economic and strategic risk.
The Strategic Problem the G7 Is Trying to Solve
For G7 economies, dependence on a single country for critical stages of supply chains is no longer acceptable. Any export restriction, political dispute, or disruption could slow down electric vehicle production, renewable energy rollout, and even defence manufacturing. Recent Chinese export controls on certain minerals have only reinforced these concerns. The G7’s objective is to reduce this vulnerability by building alternative, trusted supply chains.
Why Mining Alone Is Not Enough
Countries like Australia play a crucial role because they possess large mineral reserves. However, mining is only the first step. The real bottleneck lies in processing minerals into battery grade materials, magnets, alloys, and components. This mid-stream stage is capital-intensive, technically complex, and currently dominated by China. Without addressing processing, simply finding new mines does not solve the problem.
India’s Role as a Processing and Manufacturing Hub
This is where India becomes important. India has a large industrial base, competitive manufacturing costs, engineering talent, and growing infrastructure. These factors make it well suited to host refining plants, battery component factories, and downstream manufacturing facilities. For the G7, India represents a realistic alternative location where processing capacity can be built at scale over time.
India as a Demand Anchor in the Supply Chain
India is not only a potential processor, it is also a future demand powerhouse. As India expands its electric vehicle market, renewable energy capacity, electronics manufacturing, and defence production, its need for critical minerals will rise sharply. Including India early ensures that future demand is integrated into global planning, rather than becoming another source of supply stress later on.
Geography and Logistics Advantage
India’s geographic position adds another layer of value. Located along key Indian Ocean shipping routes, India strengthens non-China trade corridors linking Africa, Australia, and the Middle East with Europe and North America. Secure supply chains depend not just on production but also on reliable transport, and India plays a central role in that network.
Strategic Trust Without Formal Alliance
For the G7, India offers a balance that few other countries can. It is politically independent, not part of any military bloc, yet broadly aligned on economic stability and supply-chain diversification. This allows cooperation without forcing rigid alliance structures that could escalate geopolitical tensions.
What India Gains From This Engagement
For India, participation opens doors to investment, technology partnerships, and access to overseas mineral assets. It also supports India’s ambition to move up global manufacturing value chains rather than remain dependent on imports for advanced components.
What This Means for the Global Minerals Order
India’s inclusion signals a shift toward a more distributed and resilient global minerals ecosystem. Instead of replacing one dependency with another, the G7 is attempting to spread risk across multiple trusted partners, with India playing a central role.
Conclusion
India’s importance to the G7’s critical minerals strategy lies not in what it mines today, but in what it can process, consume, and stabilise tomorrow. By bringing India into the fold, the G7 is recognising that the future of critical minerals depends as much on manufacturing capacity and demand alignment as it does on geology.
