India and Brazil signed a landmark Memorandum of Understanding (MoU) to cooperate on rare earth elements and critical minerals. The agreement was finalized during delegation-level talks in New Delhi between Prime Minister Narendra Modi and Brazilian President Luiz Inácio Lula da Silva.
This pact is a strategic move for India to build resilient supply chains and reduce its heavy dependence on China for minerals essential to electric vehicles (EVs), solar panels, smartphones, and defense technologies.
Key Highlights of the Agreement
- The “Second-Largest” Resource: Brazil possesses the world’s second-largest reserves of rare earth minerals. The MoU focuses on joint exploration, mining, processing, and recycling of these strategic resources.
- Resilient Supply Chains: PM Modi described the pact as a “major step” toward securing the critical raw materials needed for India’s energy transition and high-tech manufacturing.
- Technology & AI: The cooperation extends to using Artificial Intelligence in geoscientific data analysis to enhance the efficiency of mineral exploration and extraction.
- Global South Solidarity: President Lula framed the deal as a meeting between a “digital superpower” (India) and a “renewable energy superpower” (Brazil) to strengthen the Global South’s voice in global trade.
Bilateral Trade Expansion
The mineral pact was part of a broader set of 9-10 agreements signed during the visit, leading to a significant upgrade in trade targets:
| Metric | Current Status (2025) | New Target (2030) |
| Bilateral Trade | $15.21 Billion | $30 Billion |
| Trade Balance | India holds a ~$1.5B surplus | Aiming to double total volume |
Other Strategic Outcomes
- Steel Sector Support: A specific MoU was also signed between India’s Ministry of Steel and Brazil’s Ministry of Mines and Energy to secure raw materials like iron ore, manganese, and niobium required for India’s massive steel capacity expansion.
- Defense & Submarines: The leaders discussed a trilateral arrangement involving Mazagon Dock for the maintenance of Scorpene-class submarines and noted the expanding presence of Brazilian aerospace firm Embraer in India.
- Visa Relaxation: Brazil announced it will extend business visas for Indian ordinary passport holders to 10 years to facilitate easier movement for entrepreneurs.
The “Wait and Watch” on U.S. Tariffs
Notably, the discussions occurred just one day after the U.S. Supreme Court struck down President Trump’s global tariffs. Both leaders agreed to “wait and watch” the U.S. administration’s response before coordinating any formal Global South policy on the matter.
“The agreement reached on critical minerals and rare earths is a major step in building a resilient supply chain… This is a great example of mutual trust and strategic alignment.” — Prime Minister Narendra Modi, Feb 21, 2026.
