India-Japan to deepen defence, critical minerals cooperation, says Foreign Secy Misri
At the 16th India-Japan Annual Summit, the Ministry of External Affairs conveyed that the two countries intend to significantly deepen cooperation in defence...
What Happened
- At the 16th India-Japan Annual Summit, the Ministry of External Affairs conveyed that the two countries intend to significantly deepen cooperation in defence procurement and critical mineral supply chain resilience.
- The Foreign Secretary stated the bilateral aim to reduce dependence on "a single or even very few sources" for critical minerals and rare earth elements, directly addressing vulnerabilities exposed by China's export restrictions on these materials.
- Japanese companies are establishing rare earth permanent magnet manufacturing facilities in India, converting India's raw mineral deposits into high-value processed materials.
- A Joint Roadmap for Economic Security was finalised, covering critical minerals, semiconductors, quantum technology, advanced manufacturing, and green energy supply chains.
- Defence cooperation was expanded across land, air, naval systems, and unmanned vehicles — alongside the UNICORN naval antenna co-production announced separately.
- An MoU on critical minerals, batteries, and AI was signed as part of the 16 summit outcomes.
- Both sides noted the positive "evolution" in Japan's approach to defence export cooperation, which historically had been constrained by its pacifist constitutional framework.
Static Topic Bridges
Critical Minerals: Definition, Geopolitics, and China's Dominance
Critical minerals are raw materials that are economically important and face significant supply chain risks due to concentration of production or processing in a limited number of countries. They are essential for modern electronics, electric vehicles (EV), renewable energy equipment, and defence systems. Rare earth elements (REEs) — a subset of 17 elements including neodymium, dysprosium, and lanthanum — are critical for permanent magnets used in EV motors, wind turbines, and precision-guided munitions.
- China controls approximately 60–70% of global rare earth mining and over 85% of global rare earth processing capacity
- In 2023, China imposed export restrictions on gallium and germanium; in early 2025, it tightened rare earth export controls — directly impacting Japanese and global supply chains
- India holds the 5th largest rare earth reserves globally; newly identified deposits in Rajasthan and Gujarat contain approximately 1.29 million tonnes of rare earth oxides
- Union Budget 2026–27 announced dedicated rare earth corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu
- JOGMEC (Japan Oil, Gas and Metals National Corporation) and India's Geological Survey of India (GSI) are set to collaborate on mineral exploration
Connection to this news: China's tightening of rare earth export controls has made Japan — which has very limited domestic mineral resources but world-leading processing technology — acutely dependent on alternative sources. India, with abundant mineral deposits, offers Japan a strategic supply partner while gaining Japanese technology for value-added processing.
Supply Chain Resilience Initiative (SCRI) and Economic Security Architecture
The Supply Chain Resilience Initiative (SCRI) is a trilateral framework involving India, Japan, and Australia, formally launched on 27 April 2021 by the three countries' trade ministers. It was catalysed by COVID-19-era supply chain disruptions and growing awareness of over-dependence on single-country supply sources. The initiative aims to create diversified, resilient supply chains across the Indo-Pacific.
- Launched: 27 April 2021 (India-Japan-Australia trilateral)
- Mandate: sharing best practices on supply chain resilience; investment promotion; buyer-seller matching events for supply chain diversification
- Governance: annual ministerial meetings; working-level implementation
- Related frameworks: India-Japan Joint Roadmap for Economic Security (2026); Quad Supply Chain Initiative; India-EU Trade and Technology Council
Connection to this news: The bilateral Joint Roadmap for Economic Security deepens what SCRI initiated trilaterally — moving from information-sharing to concrete co-investment and co-production arrangements in critical sectors, with minerals, semiconductors, and batteries as the highest-priority nodes.
Japan's Constitutional Evolution on Defence Exports
Japan's pacifist constitution, notably Article 9 (which renounces war and prohibits maintaining war potential for settling international disputes), shaped Japan's post-war defence posture for decades. Japan adopted Three Principles on Arms Exports in 1967 (under PM Sato), effectively prohibiting most defence exports. These were replaced by Three Principles on Transfer of Defence Equipment and Technology in 2014 under PM Abe, allowing exports under strict conditions to friendly nations for non-combat use. In December 2023, Japan further revised its guidelines to permit export of finished weapons (not just components) to certain countries.
- Article 9 of Japan's Constitution: renounces war; bars "war potential" for settling disputes
- 1967 Arms Export Three Principles: near-total ban on defence exports
- 2014 New Three Principles (Abe): conditional export allowed; facilitates co-development
- December 2023 revision: permits export of finished weapons produced under licence to certain countries
- Japan's Integrated National Security Strategy (December 2022) identified China, Russia, and North Korea as major security challenges
Connection to this news: The noted "evolution" in Japan's defence export posture is what enables the UNICORN co-development deal and expanded defence procurement cooperation with India — this evolution is rooted in deliberate constitutional reinterpretation and legislative change since 2014.
Key Facts & Data
- China's share of global rare earth mining: ~60–70%; processing: ~85%+
- India's rare earth reserves rank: 5th globally; newly identified deposits ~1.29 million tonnes of REOs
- SCRI launched: 27 April 2021 by India, Japan, Australia trade ministers
- Union Budget 2026–27: rare earth corridors announced in Odisha, Kerala, Andhra Pradesh, Tamil Nadu
- MoU on critical minerals, batteries, and AI signed at the July 2026 summit
- Japan's Three Principles on Transfer of Defence Equipment: adopted 2014 (replaced 1967 ban)
- December 2023 Japan policy revision: enabled export of finished weapons to select partners
- India-Japan investment target: ¥10 trillion (~$60 billion) over the next decade; ~$10 billion committed through ~120 business agreements