On 21 February 2026, India and Brazil formalized a cooperation agreement on critical minerals and rare earths during President Luiz Inácio Lula da Silva’s visit to New Delhi. Indian Prime Minister Narendra Modi described the pact as a “major step towards building resilient supply chains,” while Brazilian leaders highlighted its link to renewable energy and industrial investment. The agreement, signed alongside nine other memoranda, aims to diversify India’s mineral supply away from China and deepen bilateral trade and technology ties.
Key Takeaways
- India and Brazil signed an agreement on critical minerals and rare earths on 21 February 2026, announced after President Lula’s meeting with PM Modi in New Delhi.
- Modi called the deal a “major step” for resilient supply chains; Brazil emphasized renewable energy cooperation as a core objective.
- Details remain limited publicly, but the package was one of ten pacts signed, covering digital cooperation, health and trade.
- Brazil is the world’s second-largest holder of certain critical minerals; it is also the world’s second-largest producer and exporter of iron ore after Australia.
- India aims to reduce dependence on China for mining and processing of rare earths, following parallel supply-chain engagements with the US, France and the EU.
- Trade between India and Brazil reached roughly $12.61 billion in 2024 combined—India’s exports to Brazil were $7.23bn and Brazilian exports to India $5.38bn, per OEC data.
- Modi reiterated a bilateral goal to push trade beyond $20 billion within five years, signaling broad commercial ambitions beyond minerals.
Background
The global rare-earths and critical-minerals market has been increasingly shaped by China, which leads in both mining and downstream processing. Over recent years Beijing tightened export controls and consolidated processing capacity, prompting importers to seek alternatives to reduce strategic vulnerability. India, dependent on Chinese imports for many processing stages, has pursued partnerships across the Global South as part of a diversification strategy.
Brazil possesses a wide array of mineral resources relevant to electric vehicles, solar panels, consumer electronics and defense systems. Resource developers and policymakers in Brasília view mineral exports and associated downstream investment as a route to industrial upgrading and green-energy projects. For India, rapid infrastructure expansion and industrial demand—especially for steel and battery-related minerals—have increased interest in reliable, long-term suppliers.
Main Event
President Lula arrived in New Delhi for talks with Prime Minister Modi that produced a package of agreements, the headline item being cooperation on critical minerals and rare earths. The memorandum was framed by both leaders as strategically important rather than purely commercial. Indian officials said it would strengthen supply-chain resilience, while Brazilian officials highlighted opportunities for investment in renewable energy projects.
Specific commercial terms, financing commitments and timelines were not disclosed at the signing. Indian and Brazilian officials signaled that follow-on technical working groups and business delegations would flesh out exploration, extraction, processing and value-chain linkages. Modi and Lula discussed broader trade, with Modi calling Brazil India’s largest trading partner in Latin America and asserting an intent to exceed $20 billion in bilateral trade within five years.
Alongside the mineral pact, nine other agreements included MoUs on digital cooperation and health. Indian Foreign Minister S. Jaishankar described the talks as imparting “new momentum” to bilateral ties. The figure of Rishabh Jain from the Council on Energy, Environment and Water noted that India’s outreach to Brazil complements recent engagements with the United States and the European bloc on supply-chain security.
Analysis & Implications
The deal signals an intensification of South–South economic diplomacy focused on strategic raw materials. For India, the primary policy logic is to diversify supply and reduce reliance on a single dominant processor—China—particularly for critical inputs used in batteries, telecommunications and defense. Securing access to Brazilian ores could alleviate bottlenecks if paired with investments in processing capacity either domestically in India or via third-country partners.
For Brazil, the agreement opens possibilities for higher-value exports and foreign direct investment into mining, refining and renewables. Brasília faces trade-offs: increasing mineral extraction can boost revenue and jobs, but also raises environmental and social governance concerns, especially in sensitive ecosystems and regions with indigenous populations. The bilateral framework will be judged in part on whether it includes strong environmental safeguards and benefit-sharing measures.
Geopolitically, the pact contributes to a broader reconfiguration of supply chains as major consumers and producers seek alternatives to China-dominated networks. If implemented at scale, a Brazil–India corridor for critical minerals could alter trade flows for materials used in electric vehicles, solar infrastructure and electronics. However, the transition from signed MoU to operational supply chains requires capital, technology transfer and stable regulatory frameworks on both sides.
Comparison & Data
| Item | 2024 Value / Rank |
|---|---|
| India → Brazil exports (2024) | $7.23 billion (OEC) |
| Brazil → India exports (2024) | $5.38 billion (OEC) |
| Brazil iron ore rank | 2nd largest producer/exporter (after Australia) |
| Brazil critical-mineral holdings | World’s #2 in several critical minerals (country assessments) |
The table summarizes trade flows and Brazil’s resource position cited by public data sources. While bilateral trade totals remain modest compared with each country’s largest partners, the mineral agreement aims to pivot the relationship toward strategic supply links. Converting raw-material advantage into stable, high-value trade depends on processing capacity, investment terms and logistics.
Reactions & Quotes
Indian and Brazilian leadership framed the agreement as forward-looking, while analysts stressed the practical hurdles ahead.
“This is a major step towards building resilient supply chains,”
Narendra Modi, Prime Minister of India
Modi used the phrase to emphasize strategic diversification; the statement was issued alongside announcements of broader trade targets.
“Increasing investments and cooperation in renewable energies and critical minerals is at the core of the pioneering agreement we have signed today,”
Luiz Inácio Lula da Silva, President of Brazil
Lula tied the mineral cooperation to Brazil’s renewable-energy ambitions and industrial policy, framing the pact as mutually beneficial.
“Global South alliances are critical for securing diversified, on-ground resource access and shaping emerging rules of global trade,”
Rishabh Jain, Council on Energy, Environment and Water (think tank)
Jain’s comment—reported via AFP—places the bilateral move in a broader geopolitical and market context, noting parallel engagements with Western partners.
Unconfirmed
- Exact commercial terms, investment amounts and project timelines for the mineral agreement have not been publicly released.
- Specific minerals covered, quantities and whether Brazil will process ores domestically before export to India remain unspecified.
- Details on environmental safeguards, benefit-sharing with local communities, and procurement timelines for downstream facilities were not disclosed at signing.
Bottom Line
The India–Brazil critical minerals agreement marks a diplomatic and economic gesture toward supply-chain diversification away from Chinese processing dominance. It reflects converging interests: India’s need for reliable inputs for industrial and green-energy expansion, and Brazil’s opportunity to add value to its resource base.
But declarations must be followed by concrete technical arrangements, investment commitments and regulatory clarity to translate the memorandum into steady material flows and industrial partnerships. Observers should watch forthcoming technical working groups, project-level MoUs and any announced financing packages as indicators of the pact’s real-world impact.