To curb China dependence, India eyes critical minerals deals with Brazil, Canada and Europe

India moves to secure critical minerals

India is holding confidential discussions with Brazil, Canada, France and the Netherlands to strike agreements on the joint exploration, extraction, processing and recycling of critical minerals, as it steps up efforts to secure resources vital to its energy transition, Reuters reported.

The talks are largely focused on lithium and rare earth elements, with New Delhi also seeking access to advanced mineral-processing technologies, sources told Reuters. The negotiations are being kept under wraps given their strategic sensitivity.

The push reflects India’s continued dependence on China, which dominates global supplies of several critical minerals and leads in mining and processing capabilities. As India accelerates its shift to cleaner energy and works to reduce emissions, experts say diversifying supply chains is increasingly essential. Mining projects, however, are time-consuming, with exploration alone often taking five to seven years and frequently failing to yield commercially viable mines.

India is seeking to model new partnerships on a critical minerals agreement signed with Germany in January. That pact includes cooperation on exploration, processing and recycling, as well as the acquisition and development of mineral assets in both countries and in third nations, one source said.

“There are requests and we are talking to France, the Netherlands and Brazil, while an agreement with Canada is under active consideration,” the source added, noting that the Ministry of Mines is leading the negotiations.

Momentum could build during an expected visit by Canadian Prime Minister Mark Carney to India in early March, when agreements covering uranium, energy, minerals and artificial intelligence may be finalised. Canada’s Natural Resources Department pointed to a January statement confirming that both sides had agreed to formalise cooperation on critical minerals in the coming weeks.

Brazil’s embassy in New Delhi, India’s Ministry of Mines and the external affairs ministry did not respond to requests for comment, while the Dutch embassy declined to comment and the French embassy chose not to comment.

India has already signed critical minerals agreements with Argentina, Australia and Japan, and is in talks with Peru and Chile on broader bilateral deals that include mineral cooperation. The outreach comes as G7 finance ministers and other major economies met in Washington last month to explore ways to reduce reliance on China for rare earth supplies.

In 2023, India designated more than 20 minerals, including lithium, as “critical” to support its energy transition and rising demand from industry and infrastructure.