India and Brazil Deepen Critical Minerals Partnership to Reduce Reliance on China

New Delhi – India and Brazil have solidified their cooperation on critical minerals and rare earth elements, signaling a strategic move by New Delhi to diversify its supply chain and lessen its dependence on China. The agreement, signed on February 21, 2026, aims to boost trade and investment in a sector vital for emerging technologies and defense applications.

A Strategic Alliance for Resource Security

The partnership comes as China maintains a dominant position in the mining and processing of rare earth minerals, increasing export controls in recent months amid geopolitical tensions. Brazil holds the world’s second-largest reserves of critical minerals , essential components in electric vehicles, solar panels, smartphones, jet engines and guided missiles. India, with growing domestic steel demand and a burgeoning technology sector, is actively seeking alternative suppliers.

Key Agreements and Trade Targets

Brazilian President Luiz Inacio Lula da Silva met with Indian Prime Minister Narendra Modi in New Delhi to formalize the agreement. Modi described the pact as a “major step towards building resilient supply chains,” while Lula emphasized the importance of increased investment and cooperation in renewable energies and critical minerals.

Beyond critical minerals, nine additional agreements were signed covering areas such as digital technology, healthcare, and entrepreneurship. Both nations have set a target to exceed $20 billion in bilateral trade within the next five years , building on the existing $15 billion trade volume recorded in 2025 .

Implications for Global Supply Chains

This collaboration reflects a broader global trend of countries seeking to diversify their supply chains for critical resources. India’s engagement with Brazil complements its existing supply chain partnerships with the United States, France, and the European Union. The move is intended to bolster India’s strategic autonomy and ensure access to essential materials for its economic growth and defense preparedness.

Looking Ahead

The details of the agreement remain forthcoming, but the partnership between India and Brazil represents a significant development in the global landscape of critical minerals. As both nations deepen their cooperation, they are poised to play a more prominent role in securing a stable and diversified supply of these vital resources.