India–Brazil Sign Critical Minerals Pact as Modi and Lula Hold Summit in New Delhi
Prime Minister Narendra Modi held delegation-level talks with Brazilian President Luiz Inácio Lula da Silva in New Delhi on February 21, 2026
The two leaders signed a critical minerals and rare earths cooperation agreement — the centrepiece of the summit — aimed at reducing India's dependence on China for rare earth supplies
Nine agreements and MoUs were signed, covering digital partnership, mining in the steel supply chain, cooperation in rare earths and critical minerals, health, and entrepreneurship
PM Modi announced a bilateral trade target of US$ 20 billion within five years; President Lula proposed revising that target upward to US$ 30 billion by 2030
Brazilian President Lula had arrived in New Delhi on Wednesday (February 18) as part of the Plenary Session of the AI Action Summit, accompanied by a delegation of more than 12 ministers and business leaders
Brazilian aerospace company Embraer and Adani Group announced plans last month to build aircraft in India — reflecting growing defence and manufacturing ties
India–Brazil Strategic Partnership and Multilateral Convergence
India and Brazil established diplomatic relations in 1948. The relationship was elevated to a Strategic Partnership in 2006, marking 20 years of this elevated framework in 2026. Both countries are key members of several multilateral groupings and share positions on Global South issues, climate finance, and multilateral trade reform.
Key Details
- Strategic Partnership: Established 2006; covers trade, defence, energy, and global governance
- Multilateral forums both belong to: BRICS, G20, IBSA (India-Brazil-South Africa), BASIC (climate negotiations bloc — Brazil, South Africa, India, China)
- IBSA Dialogue Forum: Established 2003 in Brasília; brings together three major emerging democracies for cooperation on trade, agriculture, and development
- Brazil is India's largest trading partner in Latin America
- Bilateral trade FY25: US$ 15.21 billion (25% increase over previous year); target set at US$ 20 billion in five years (Modi) or US$ 30 billion by 2030 (Lula's proposal)
- Both are founding BRICS members (BRIC established 2009, South Africa added 2010; BRICS expanded in 2024 to include Egypt, Ethiopia, Iran, Saudi Arabia, UAE — now BRICS+)
The Modi–Lula summit reinforces the India–Brazil strategic alignment at a time when both nations are navigating a shifting global trade order under US tariff volatility, making South–South cooperation in critical minerals strategically timely.
Critical Minerals and Rare Earths: Strategic Importance and China's Dominance
Critical minerals (lithium, cobalt, nickel, manganese, rare earth elements) are essential inputs for clean energy technologies — electric vehicles, solar panels, wind turbines — and for defence electronics, smartphones, and advanced manufacturing. China dominates the global supply chain for these materials.
The India–Brazil critical minerals MoU is a direct attempt to build an alternative supply chain to China, leveraging Brazil's vast reserves and India's processing and manufacturing demand — a strategic alignment that reduces vulnerability for both.
India's Critical Minerals Diplomacy: Bilateral Partnerships
India has been actively securing critical mineral supply chains through bilateral agreements with mineral-rich nations. The Brazil MoU is part of a broader portfolio of India's critical minerals diplomacy.
The Brazil deal adds to India's growing critical minerals partnership network, diversifying supply sources across Latin America, Africa, and the Indo-Pacific to reduce single-source dependency.
- India–Brazil diplomatic relations established: 1948
- Strategic Partnership elevated: 2006 (marking 20 years in 2026)
- Bilateral trade FY25: US$ 15.21 billion (25% growth over previous year)
- Trade targets: US$ 20 billion in five years (Modi) / US$ 30 billion by 2030 (Lula's counter-proposal)
- Brazil's rare earth reserves: approximately 21 million tonnes — second largest globally
- China's share of global rare earth processing: 85–90%
- Critical minerals MoU: one of nine agreements signed at the summit
- BRICS: India and Brazil are founding members; BRICS+ now has 9+ members (post-2024 expansion)
- IBSA: Established 2003 in Brasília Declaration
- Minerals Security Partnership (MSP): 14-country coalition; India joined September 2023
- India's 30 identified critical minerals under the Critical Minerals Mission (2023)