India and Brazil agree on critical minerals partnership

India and Brazil Sign Agreement on Critical Minerals and Rare Earths

Indian Prime Minister Narendra Modi and Brazilian President Luiz Inacio Lula da Silva signed an agreement in New Delhi on Saturday aimed at boosting cooperation on critical minerals and rare earths. The deal is part of a broader effort to strengthen trade and investment between the two countries.

According to Modi, the agreement represents a “major step towards building resilient supply chains.” Brazil is one of the world’s largest holders of critical minerals, which are used in various industries such as electric vehicles, solar panels, and jet engines. The country’s resources are also being sought after by India due to its growing dependence on China for these materials.

The agreement comes as China continues to dominate the mining and processing of rare-earth and critical minerals. Brazil is the second-largest producer and exporter of iron ore, a material in high demand in India due to rapid infrastructure expansion and industrial growth.

In addition to the mineral deal, nine other agreements were signed between the two countries, including memoranda of understanding on digital cooperation, health, and education. The Indian Foreign Ministry announced that bilateral trade between the two nations is expected to reach $20 billion within the next five years.

The agreement marks a significant development in India-Brazil relations, with Modi calling Brazil India’s “largest trading partner in Latin America.” Brazilian exports to India reached $5.38 billion, primarily consisting of raw sugar, while Indian exports to Brazil totaled $7.23 billion, mainly comprising refined petroleum.

Source: Al Jazeera