India and Brazil have agreed to enhance collaboration on critical minerals and rare earths, as stated by Prime Minister Narendra Modi following discussions in New Delhi with Brazilian President Luiz Inacio Lula da Silva. Modi emphasized that the agreement signifies a significant stride towards establishing resilient supply chains.
With Brazil holding the world’s second-largest reserves of critical minerals utilized in various sectors such as electric vehicles, solar panels, smartphones, jet engines, and guided missiles, India aims to reduce its reliance on major exporter China by bolstering local production, recycling efforts, and exploring new suppliers.
Lula highlighted the importance of augmenting investments and cooperation in renewable energies and critical minerals through the groundbreaking pact signed today. The specifics of the agreement have not been disclosed yet.
Apart from this, nine additional agreements and memoranda of understanding covering digital collaboration, healthcare, entrepreneurship, and other domains were finalized on the same day, as confirmed by the foreign ministry’s spokesperson. Modi expressed India’s commitment to elevating bilateral trade with Brazil, its largest trade partner in Latin America, beyond $20 billion in the next five years, emphasizing that the trade volume symbolizes a relationship built on trust.
During his visit for an artificial intelligence summit, Lula, accompanied by a delegation including over a dozen ministers and business figures, paid respects to India’s freedom fighter Mahatma Gandhi and engaged in discussions with Modi. Given China’s dominance in rare earths production, countries are exploring alternative supply sources.
Rishabh Jain, an expert at the Council on Energy, Environment and Water in Delhi, noted that India’s deepening cooperation with Brazil on critical minerals aligns with recent supply chain engagements with the United States, France, and the European Union. As the tenth largest market for Brazilian exports, India saw bilateral trade exceed $15 billion in 2025, with significant exports including sugar, crude oil, vegetable oils, cotton, and iron ore, driven by India’s rapid infrastructure development and industrial expansion.
Indian Foreign Minister Subrahmanyam Jaishankar expressed optimism that the discussions between Lula and Modi would inject fresh vigor into bilateral relations. Modi highlighted the continuous growth in defense cooperation, emphasizing a mutually beneficial partnership.
