India, Brazil sign rare earths and critical minerals cooperation deal to reduce China dependence

India and Brazil have signed an agreement to boost cooperation on rare earths and other critical minerals, part of efforts to develop more resilient supply chains and reduce dependence on dominant global suppliers such as China.

The pact was finalized following talks between Prime Minister Narendra Modi and Brazilian President Luiz Inácio Lula da Silva in New Delhi.

The memorandum of understanding (MoU) covers cooperation in the exploration, development and supply of rare earth elements and critical minerals that are essential for modern technologies, including renewable energy systems, electric vehicles, semiconductors and defence equipment.

Modi described the agreement as a “major step in building a resilient supply chain” after the signing.

Brazil holds large reserves of critical minerals and is a leading global producer of rare earth elements, making it a key partner for India’s drive to diversify its access to these resources and strengthen supply security. India has been seeking to cut reliance on China, which dominates global rare earth production and processing.

The rare earths pact comes as part of broader discussions during the bilateral meeting, where the two leaders reaffirmed the importance of enhancing economic and strategic ties.

Both sides also noted the potential for cooperation in other areas such as defence, technology and trade, although details on those aspects were not made public immediately.

The agreement is expected to support India’s efforts under its Critical Minerals Mission to build secure and diversified supply chains for raw materials crucial to future industries.

Experts say access to diversified sources of rare earths could strengthen India’s manufacturing base and its long-term technological competitiveness.

Officials also highlighted the broader framework of India-Brazil relations, which have seen increasing cooperation across trade, minerals and strategic sectors in recent years.

Though specific investment and project details under the rare earths deal have yet to be disclosed, analysts noted the pact signifies deeper collaboration between two large emerging economies seeking to balance global supply-chain risks.