India and Brazil Agree to Boost Cooperation on Critical and Strategic Minerals

Indian Prime Minister Narendra Modi stated on Saturday that India and Brazil have agreed to enhance cooperation regarding critical and strategic minerals.

This agreement was signed following discussions between Indian Prime Minister Modi and Brazilian President Luiz Inacio Lula da Silva.

“The agreement on critical and strategic minerals is a major step towards building a resilient supply chain,” said Indian Prime Minister Modi.

Critical minerals produced in Brazil, the world's second-largest producer, are used in manufacturing everything from electric vehicles, solar panels, and smartphones to jet engines and guided missiles.

India is seeking new suppliers while expanding domestic production and reprocessing to reduce its dependence on China, the world's top exporter.

Lula stated, “The essence of the pioneering agreement we signed today is to increase investment and cooperation in the areas of renewable energy and critical minerals.”

Although detailed specifics of the agreement were not disclosed, a senior official from the Indian Ministry of External Affairs confirmed that formal discussions were underway regarding the pact.

“President Lula gave a detailed presentation on Brazil's reserves of critical and strategic minerals,” said P Kumaran.

He added, “Only 30 percent of the reserves in Brazil have been explored, so Brazil holds immense potential for mineral exploration, processing, and utilization.”

Reflection of Trust

Nine other agreements and Memoranda of Understanding (MoUs) related to digital cooperation, health, entrepreneurship, and other sectors between the two countries were finalized on Saturday.

“Brazil is India's largest trading partner in Latin America. We are committed to taking bilateral trade above $20 billion in the next five years,” Modi said following the agreement.

He added, “Our trade is not just a statistic; it is also a reflection of trust.”

Lula, who arrived in New Delhi on Wednesday for an Artificial Intelligence (AI) summit, is accompanied by a delegation of more than a dozen ministers and business representatives.

Before meeting Modi, President Lula was formally welcomed on Saturday and paid tribute to India's freedom fighter Mahatma Gandhi.

China holds a monopoly on the production of rare minerals, and some countries are seeking alternative sources.

Rishabh Jain, an expert at a New Delhi-based think tank focusing on water, energy, and environment sectors, noted that India's growing cooperation with Brazil on critical minerals complements recent supply chain agreements with the US, France, and the European Union.

“These partnerships provide India access to advanced technology, finance, and high-end processing capabilities, and are crucial for 'Global South Alliances' to secure access to diverse local resources and shape emerging global trade rules,” Jain told AFP.

New Momentum

India, the world's most populous country, is Brazil's 10th largest export market, with bilateral trade exceeding $15 billion in 2025.

Brazil's main exports to India include sugar, crude oil, vegetable oils, cotton, and raw materials for steel production.

For India, which is on track to become the world's fourth-largest economy, the demand for raw materials like iron for steel production is driven by rapid infrastructure expansion and industrial growth.

“Our cooperation in the defense sector is also continuously increasing,” Prime Minister Modi stated.

He added, “When India and Brazil work together, the voice of the Global South becomes stronger and more confident.”

Lula indicated that Brazil is ready to cooperate for the world's largest global defense market.

He said, “We do not just want to sell. We want to strengthen the relationship through procurement and investment, along with technology transfer and personnel training in India.”

Brazilian companies are expanding their market presence in the South Asian nation, with Embraer and the Adani Group announcing plans last month to manufacture aircraft in India.

President Lula is scheduled to meet with South Korean President Lee Jae-myung on Sunday.