Indian Prime Minister Narendra Modi hailed the agreement on critical minerals and rare earths as a “major step towards building resilient supply chains.”
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Brazil and India have signed an agreement to step up cooperation on critical minerals and rare earths, as the Indian government seeks new suppliers to curb dependence on China.
Brazilian President Luiz Inácio Lula da Silva met Indian Prime Minister Narendra Modi in New Delhi on Saturday to discuss expanding trade and investment opportunities.
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Prime Minister Modi said in a statement that the agreement on critical minerals and rare earths is a “major step towards building resilient supply chains.”
China dominates the world’s mining and processing of rare earths and critical minerals, and has tightened its grip on exports in recent months as the United States seeks to break its grip on the growing industry.
Still, Brazil is the world’s second-largest mineral-rich country after China, and its resources are used in a wide range of fields, including electric cars, solar panels, smartphones, jet engines, and guided missiles.
“Increasing investment and cooperation in renewable energy and critical mineral issues is at the heart of the pioneering agreement we signed today,” Lula said in a statement.
So far, few details about the mineral trade have been disclosed, but demand for iron ore in India, the raw material for iron ore, of which Brazil is the second largest producer and exporter after Australia, is increasing amid rapid infrastructure development and industrial growth.
Rishabh Jain, an expert at the Energy, Environment and Water Council, a New Delhi-based think tank, told AFP news agency that India’s expanded cooperation with Brazil in critical minerals follows recent supply chain engagements with the United States, France and the European Union.
“Global South alliances are critical to ensuring access to diverse terrestrial resources and shaping new global trade rules,” Jain told AFP.
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In addition to the Critical Minerals and Rare Earths Agreement, nine other agreements have been signed, including memoranda of understanding ranging from digital cooperation to health, a spokesperson for the Indian Ministry of External Affairs said.
Furthermore, Prime Minister Modi called Brazil and India “Latin America’s largest trading partners.”
“We are committed to increasing bilateral trade to more than $20 billion over the next five years,” he said.
“Our trade is not just a number, it is a reflection of trust,” PM Modi said, adding, “When India and Brazil work together, Brazil’s voice will be heard.” [the] The Global South will become stronger and more confident. ”
India’s External Affairs Minister Subrahmanyam Jaishankar also said he was confident that the meeting between Prime Minister Lula and Prime Minister Modi would “give new momentum to our bilateral relations”.
According to the Observatory of Economic Complexity (OEC), India’s exports to Brazil in 2024 amounted to $7.23 billion, with refined oil being the main export. Meanwhile, Brazil’s exports to India amounted to $5.38 billion, with raw sugar being the main export product.
