India, Brazil sign rare earths deal to build ‘resilient supply chains’

India and Brazil have signed an agreement to enhance cooperation on critical minerals and rare earths, as announced by Indian Prime Minister Narendra Modi following discussions with Brazilian President Luiz Inacio Lula da Silva in New Delhi. Modi described the agreement as a significant step toward building resilient supply chains. The deal aims to strengthen ties between the two countries in the context of critical minerals, which are essential for various technologies, including electric vehicles, solar panels, smartphones, and jet engines. Brazil is noted for having the world’s second-largest reserves of critical minerals, making it a key player in the global supply chain for these resources. The agreement is seen as a strategic move to reduce dependence on China, which currently dominates the supply of critical minerals. Brazilian President Lula emphasized that the deal represents the "core of the pioneering agreement" between the two nations, highlighting its importance in fostering bilateral cooperation. The collaboration on critical minerals and rare earths is part of broader efforts by both countries to enhance economic ties and ensure a stable supply of essential materials. This agreement could potentially lead to increased investment and development in the mining and technology sectors in both India and Brazil, further solidifying their partnership in the global market for critical resources.