Brazil, India ink critical minerals deal as leaders meet

AFP | New Delhi

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India and Brazil agreed to boost cooperation on critical minerals and rare earths yesterday, Prime Minister Narendra Modi said after talks in New Delhi with Brazilian President Luiz Inacio Lula da Silva.

"The agreement on critical minerals and rare earths is a major step towards building resilient supply chains," Modi said.

Brazil has the world's second-largest reserves of critical minerals, which are used in everything from electric vehicles, solar panels and smartphones to jet engines and guided missiles.

India, seeking to cut its dependence on top exporter China, has been expanding domestic production and recycling while scouting for new suppliers.

"Increasing investments and cooperation in matters of renewable energies and critical minerals is at the core of the pioneering agreement that we have signed today," Lula said.

The details of the deal were not immediately available but a senior Indian foreign ministry official said official discussions were underway.

"President Lula gave a very detailed presentation on Brazil's substantial critical minerals and rare earth reserves," P. Kumaran told reporters at a media briefing.

"He said only 30 percent of their reserves have been explored and that there is substantial scope for exploration, processing minerals and also using them."

'Reflection of trust'

Nine other agreements and memoranda of understanding were finalised on Saturday, covering digital cooperation, health, entrepreneurship and other fields.

"Brazil is India's largest trade partner in Latin America. We are committed to taking our bilateral trade beyond $20 billion in the coming five years," Modi said.

"Our trade is not just a figure, but a reflection of trust."

Lula, who arrived in New Delhi on Wednesday for a summit on artificial intelligence, is accompanied by a delegation of more than a dozen ministers as well as business leaders.

On Saturday, he was given a ceremonial welcome and paid tribute to India's independence hero Mahatma Gandhi, before holding the meeting with Modi.

Modi said that "our cooperation in the defence sector is also continuously growing," hailing a "win-win partnership".

"When India and Brazil work together, the voice of Global South becomes stronger and more confident."

Speaking at a business forum later in the day, Lula said Brazil was ready to cooperate in one of the world's largest global defence markets.

"We do not want only to sell," he said. "We want to buy, invest, and consolidate our presence in India, with technology transfer and training of personnel."