India Signs Critical Minerals Deal With Brazil

India and Brazil have formalised a strategic partnership on critical minerals, marking a significant move in New Delhi’s efforts to diversify supply chains away from Beijing and secure materials vital for clean energy and high-tech industries.

Strategic Minerals and Supply Chain Resilience

Indian Prime Minister Narendra Modi announced the agreement after talks in New Delhi with Brazilian President Luiz Inácio Lula da Silva.

“The agreement on critical minerals and rare earths is a major step towards building resilient supply chains,” Modi said, underscoring India’s strategy to reduce dependence on China, currently the world’s dominant exporter of rare earth elements.

Brazil holds the world’s second-largest reserves of critical minerals, essential for manufacturing electric vehicles, solar panels, smartphones, jet engines and advanced defense systems. The agreement is expected to enhance exploration, processing and investment cooperation, though detailed terms were not immediately disclosed.

Renewable Energy and Investment Expansion

President Lula described the pact as central to a broader economic alignment between the two countries.

“Increasing investments and cooperation in matters of renewable energies and critical minerals is at the core of the pioneering agreement that we have signed today,” he said.

India has intensified efforts to secure mineral supplies as global demand accelerates with the energy transition. New Delhi has expanded domestic production and recycling initiatives while pursuing overseas partnerships in Latin America and Africa to counter concentrated supply chains.

Broader Bilateral Engagement

The minerals pact was among ten agreements finalised during Lula’s visit. According to India’s foreign ministry, additional memoranda of understanding covered digital cooperation, healthcare, entrepreneurship and technological collaboration.

Modi highlighted growing trade ties, noting that Brazil is India’s largest trading partner in Latin America. “We are committed to taking our bilateral trade beyond $20 billion in the coming five years,” he said. “Our trade is not just a figure, but a reflection of trust.”

Diplomatic Context and AI Summit Visit

Lula arrived in New Delhi earlier in the week to attend an artificial intelligence summit. He was accompanied by more than a dozen ministers and business leaders, signaling a comprehensive diplomatic and commercial push.

On Saturday, Lula received a ceremonial welcome and paid tribute to Indian independence leader Mahatma Gandhi before entering formal talks with Modi.

The agreement reflects a broader trend of emerging economies strengthening South-South cooperation to secure strategic resources and reduce vulnerabilities in an increasingly competitive global market.