As China tightens its grip on rare earths, India is looking elsewhere. A new deal with Brazil could reshape global supply chains.
India and Brazil have signed a new agreement to deepen cooperation in critical minerals and rare earths, a move New Delhi hopes will reduce its dependence on China and strengthen supply chain resilience.
Brazilian President Luiz Inacio Lula da Silva met Indian Prime Minister Narendra Modi in New Delhi on Saturday, where the two leaders discussed expanding trade and investment ties. Modi described the minerals agreement as a “major step towards building resilient supply chains.”
China currently dominates global mining and processing of rare earths and other critical minerals, materials essential for electric vehicles, renewable energy systems, smartphones, jet engines and advanced weapons systems. Beijing has tightened export controls in recent months, adding urgency to efforts by countries like India to diversify sources.
Brazil, which holds some of the world’s largest reserves of critical minerals after China, is well positioned to become a key alternative supplier. Lula said increasing cooperation in renewable energy and critical minerals was central to the “pioneering agreement” signed between the two countries.
Although specific details of the minerals pact have not been released, analysts say it reflects India’s broader strategy of securing long-term access to resources vital for industrial growth and clean energy transition. India has recently pursued similar supply chain partnerships with the United States, France and the European Union.
Beyond minerals, the two governments signed nine additional agreements spanning digital cooperation, health and other sectors. Modi called Brazil India’s largest trading partner in Latin America and set a target of pushing bilateral trade beyond $20 billion within five years.
According to trade data from the Observatory of Economic Complexity, Indian exports to Brazil reached $7.23 billion in 2024, led by refined petroleum products. Brazilian exports to India totaled $5.38 billion, with raw sugar among the top commodities.
For both nations, the agreement signals more than commercial ambition. As emerging powers, India and Brazil have increasingly framed their cooperation as strengthening the voice of the Global South in shaping new trade and energy rules.
In a world where control over minerals can shape geopolitical influence, their partnership may mark another step in the global race to loosen China’s grip on strategic resources.
