Archive · 13 Dec 2025
US Launches AI Supply Chain Pact
The United States and several allies have formed a new group called 'Pax Silica' to make sure they have the important materials needed for artificial intelligence (AI).
These materials are used to make things like computer chips.
The group includes countries like Japan, South Korea, and Australia.
They want to work together so they don't have to rely on China for these materials.
China currently controls a lot of the supply of these important materials.
The United States also recently changed its policy to allow the export of advanced AI chips to China, which was a reversal of a previous decision.
The new pact aims to ensure that these countries have reliable access to the inputs and infrastructure that determine AI competitiveness.
India is notably absent from this pact despite ongoing trade talks with the US.
US and allies launch 'Pax Silica' pact to secure AI supply chains.
Countries involved include Japan, South Korea, Singapore, Australia, Israel, and others.
Pact aims to reduce dependence on China for key AI materials.
China mines around 70% of key rare earths used in AI.
US allows export of Nvidia's advanced AI chips to China, reversing previous policy.
- Who
- United States and allies (Japan, South Korea, Singapore, Australia, Israel, United Arab Emirates, Canada, The Netherlands, European Union)
- What
- Launch of 'Pax Silica' pact to secure AI supply chains
- When
- Announced on Thursday
- Where
- Washington, D.C.
- Why
- To secure key resources and reduce dependence on China in the AI sector
US and Allies
China
Supply Chain Dependence
US and Allies
Aims to reduce dependence on China for key AI materials.
China
Currently controls around 70% of key rare earths used in AI.
- Countries Involved
- United States, Japan, South Korea, Singapore, Australia, Israel, United Arab Emirates, Canada, The Netherlands, European Union
- Purpose
- Secure supply chains for AI minerals, reduce dependence on China
- Name of Pact
- Pax Silica
- Key Material
- Silicon
- China's Dominance
- Mines around 70% of key rare earths
- US Policy Change
- Allows export of Nvidia's AI chips to China
- US Statement
- Aims to unite countries with advanced tech companies for AI economic potential
- India's Involvement
- Not included in the pact despite high-level trade talks
Sources
US launches pact for AI supply chains to face China
India left out of new US critical mineral diversification plan ‘Pax Silica’
India left out of US-led coalition to counter China’s rare earth dominance
What is Pax Silica Initiative? The US-led grouping that excluded India
