Context: Announced during Indian Prime Minister’s visit to Washington, it aims to strengthen cooperation in critical minerals, pharmaceuticals, advanced materials etc.

Significance of TRUST initiative

• Encourage public and private investments, to boost manufacturing capacity, creating jobs in both India and USA.

• Boost exports by reducing barriers to technology transfer, addressing export controls, enhancing high-tech commerce.

• Builds trusted & resilient supply chains for critical minerals, semiconductors, Active Pharmaceutical Ingredients etc.

• Recovery & processing of strategic minerals like lithium, Rare Earth Elements etc. to diversify supply chains and counter China’s dominance.

• Fosters innovation, by catalysing government-to-government, academia & private sector collaboration in fields of critical & emerging technologies like defence, AI, quantum technology, etc.

• Strengthens government's National Critical Mineral Mission, encouraging public and private sector companies to acquire critical mineral assets abroad. 

Significance of the TRUST Initiative

• Reducing Dependence on China: Ensures a diversified supply chain for India and the US, reducing reliance on China’s 70% control over REE production.

• Strengthening Atmanirbhar Bharat: Boosts domestic production and recycling of critical minerals, aligning with India’s National Critical Minerals Mission (2024-31).

• Enhancing Pharma & Defense Sectors: Supports API self-sufficiency in pharmaceuticals and strengthens defense manufacturing with secure access to critical materials.

• Boosting Clean Energy & EV Manufacturing: Secures lithium and cobalt for EV batteries and expands processing of minerals needed for renewable energy technologies.

• Expanding High-Tech Trade & Investment: Encourages US investments in India’s mineral and tech sectors, fostering growth in AI, semiconductors, and space research.

About Critical Minerals

• They are elements that are building blocks of essential modern-day technologies and are at risk of supply chain disruptions due to limited global production & geopolitical factors.

Importance

• Defence: Neodymium, samarium for high-performance magnets used in missiles, fighter jets, and radars.

• Energy: Lithium, cobalt power are used in advanced batteries for energy storage and electric vehicles. 

• Medical: Europium, Terbium enhances biotech imaging and medical diagnostics.