New Delhi, India – Brazil and India have solidified a strategic partnership with a new agreement focused on boosting cooperation in critical minerals and rare earths, a move signaling a broader effort by both nations to diversify supply chains and reduce reliance on China.
The deal, formalized in New Delhi on , establishes a framework for reciprocal investment, exploration and mining initiatives, with a particular emphasis on the application of artificial intelligence within the sector. The agreement was signed during a state visit by Brazilian President Luiz Inácio Lula da Silva, accompanied by a significant delegation of eleven ministers and business leaders.
Brazil holds the world’s second-largest reserves of rare earth minerals, essential components in a wide array of modern technologies, including smartphones, electric vehicles, solar panels, and jet engines. This abundance positions Brazil as a key potential partner for India, which is actively seeking to secure alternative sources for these crucial materials.
“Increasing investments and cooperation in matters of renewable energy and critical minerals is at the core of a pioneering agreement that we have signed today,” President Lula da Silva stated to journalists following the meeting with Indian Prime Minister Narendra Modi. The agreement also encompasses broader legal frameworks covering entrepreneurship, health, scientific research, and education, reflecting a deepening of ties between the two BRICS+ nations.
The timing of this agreement is significant, coming as China continues to dominate the mining and processing of rare earth minerals and has, in recent months, tightened its grip on exports, particularly as the United States attempts to establish independent supply chains. India’s move to partner with Brazil is a direct response to this strategic vulnerability.
According to Oliver Stuenkel, an international relations professor at the Getulio Vargas Foundation, the deal represents a broader strategy for both countries to achieve greater strategic autonomy from both China and the United States. “The reading is that, given how turbulent and unpredictable things have become, the more partners, the better,” Stuenkel explained.
Brazil’s pursuit of this diversification strategy has been evident in recent years, culminating in a willingness to leverage its mineral resources in diplomatic negotiations. This was demonstrated last year when President Lula da Silva resisted pressure from the United States over the trial of former President Jair Bolsonaro, a move that highlighted Brazil’s growing assertiveness on the global stage.
The United States subsequently removed most tariffs imposed on Brazilian exports and reversed sanctions against the judge overseeing Bolsonaro’s case, illustrating the potential leverage Brazil holds through its resource wealth. Roberto Goulart Menezes, an international relations professor at the University of Brasilia, noted that the confrontation with the U.S. Was a pivotal moment, prompting Brazil to recognize the geopolitical significance of its rare earth and critical mineral reserves.
“Brazil began to reposition its understanding of the importance of these elements beyond their commercial dimension, recognizing their geopolitical relevance,” Goulart said. The agreement with India is viewed as a “pilot” program, potentially paving the way for similar negotiations with other nations, particularly those with whom Brazil has historically asymmetrical relationships.
President Lula da Silva is expected to visit Washington D.C. In the coming months, and this agreement with India is likely to serve as a foundation for discussions regarding Brazil’s resource contributions and potential trade arrangements with the United States. The size of the Brazilian delegation accompanying President Lula – eleven ministers and a substantial number of business leaders – underscores the importance Brazil places on strengthening its relationship with India.
The memorandum of understanding focuses on non-binding cooperation, but it establishes a clear pathway for future collaboration. The agreement’s emphasis on artificial intelligence applications within the mining sector suggests a commitment to modernizing and optimizing resource extraction and processing techniques. This collaboration could lead to advancements in efficiency, sustainability, and the development of new technologies related to critical mineral utilization.
The deepening ties between Brazil and India also reflect a broader trend of cooperation among developing nations seeking to reshape the global economic and political landscape. As founding members of the BRICS+ bloc, both countries share a common interest in promoting a more multipolar world order and challenging the dominance of traditional Western powers.
Prime Minister Modi’s visit to Brazil last July, and President Lula’s reciprocal visit to India, demonstrate a mutual commitment to strengthening bilateral relations. The agreement on critical minerals and rare earths is a tangible outcome of this ongoing dialogue and a significant step towards building a more resilient and diversified global supply chain.
