Brazil, India Ink Rare Earths Pact to Expand Supply Chain Cooperation

Brazil and India have signed a new agreement to deepen cooperation on rare earths and critical minerals as both countries seek to strengthen supply chains and reduce reliance on trading partners.

The non-binding memorandum of understanding, sealed on February 21 during Brazilian President Luiz Inácio Lula da Silva’s state visit to India, establishes a framework for collaboration on reciprocal investment, exploration and mining.

“Increasing investments and cooperation in matters of renewable energy and critical minerals is at the core of a pioneering agreement that we have signed today,” Lula told journalists.

Rare earth elements are essential inputs for a range of advanced technologies, including smartphones, electric vehicles, solar panels and jet engines. Brazil holds the world’s second largest reserves of rare earths, giving the country strategic importance as global governments look to diversify supply chains.

Despite Brazil's potential, China still accounts for roughly 70 percent of global rare earths mining and has an even stronger position when it comes to processing. Countries across the Global South and industrialized economies alike have stepped up efforts to secure alternative sources of supply in a bid to avoid reliance on the Asian nation.

India, like Brazil, is a founding member of the expanded BRICS+ bloc of developing nations, and both governments have emphasized the need to build stronger South-South partnerships.

Brazil’s push to elevate rare earths in its diplomatic agenda gained momentum last year amid tensions with the US.

In 2025, US President Donald Trump imposed a 50 percent tariff on Brazilian exports in connection with the trial of former President Jair Bolsonaro, an ally of Trump.

The US later removed most of the tariffs and lifted sanctions imposed on the judge overseeing the case.

The Brazil-India accord also continues an ongoing global scramble for critical minerals.

Since last year, the US has signed agreements with Japan and Australia aimed at securing supplies of rare earths, lithium, cobalt and nickel, with an emphasis on building processing capacity outside China.

For Brazil, the deal with India could serve as a testing ground ahead of potential negotiations with larger powers. Lula is expected to visit Washington in the coming months.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.