New Delhi – India and Brazil have solidified their partnership with a new agreement focused on boosting cooperation regarding critical minerals and rare earth elements, a move signaling India’s intent to lessen its reliance on China for these vital resources. The deal, signed Saturday in New Delhi during a meeting between Indian Prime Minister Narendra Modi and Brazilian President Luiz Inácio Lula da Silva, comes as China increasingly controls the global supply chain for these strategically important materials.
The agreement represents a “major step towards building resilient supply chains,” according to a statement released by Prime Minister Modi. With China dominating both the mining and processing of rare-earth and critical minerals – and recently increasing its control over exports as the United States attempts to challenge its position – India is actively diversifying its sources. Brazil, holding the world’s second-largest reserves of critical minerals, emerges as a key partner in this effort.
These minerals are essential components in a wide range of modern technologies, including electric vehicles, solar panels, smartphones, jet engines, and even guided missiles. The collaboration aims to ensure a stable supply for India’s growing industrial needs and its ambitions in renewable energy and defense. President Lula da Silva echoed this sentiment, stating that “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.”
While specific details of the mineral deal remain limited, the timing coincides with growing demand in India for resources like iron ore. Brazil is the second-largest producer and exporter of iron ore globally, trailing only Australia, and India’s rapid infrastructure expansion and industrial growth are driving increased demand. Bilateral trade between the two nations reached $15 billion in 2025, and both countries have set a target of $20 billion by 2030, according to officials.
Expanding Trade and Strategic Alignment
The critical minerals agreement was just one of ten agreements signed during President Lula’s visit, encompassing areas such as digital cooperation and healthcare. Prime Minister Modi emphasized Brazil’s importance as India’s “largest trading partner in Latin America,” adding, “We are committed to taking our bilateral trade beyond $20bn in the coming five years.” He further stated that the trade relationship is “not just a figure, but a reflection of trust,” and that collaboration between India and Brazil strengthens the voice of the Global South.
India’s Foreign Minister Subrahmanyam Jaishankar expressed confidence that the talks between Modi and Lula would “impart a new momentum to our ties.” According to data from the Observatory of Economic Complexity (OEC) in 2024, Indian exports to Brazil totaled $7.23 billion, with refined petroleum as the primary export. Conversely, Brazilian exports to India reached $5.38 billion, led by raw sugar.
A Broader Strategy for Supply Chain Security
Experts suggest India’s deepening ties with Brazil are part of a broader strategy to diversify its supply chains. Rishabh Jain, an expert with the New Delhi-based Council on Energy, Environment and Water, told AFP that India’s collaboration with Brazil complements existing partnerships with the United States, France, and the European Union. “Global South alliances are critical for securing diversified, on-ground resource access and shaping emerging rules of global trade,” Jain explained.
This move comes after both India and Brazil were impacted by U.S. Tariffs in 2025, prompting discussions on challenges to multilateral trade systems and the global economy. Washington has since announced plans to roll back duties on Indian goods as part of a recently announced trade deal. The focus on securing critical minerals highlights the growing geopolitical importance of these resources and the strategic imperative for nations to reduce their dependence on single suppliers.
The partnership between India and Brazil signals a growing trend of cooperation between nations in the Global South to address shared economic and strategic challenges. As both countries continue to invest in renewable energy and advanced technologies, access to a reliable supply of critical minerals will be paramount. The long-term implications of this agreement will likely extend beyond trade, shaping the future of global supply chains and geopolitical alliances.
Looking ahead, the implementation of this agreement will be crucial. Further details regarding specific investment plans, joint projects, and regulatory frameworks are expected to emerge in the coming months. The success of this partnership will depend on continued collaboration and a shared commitment to building resilient and sustainable supply chains.
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