Brazil and India sign agreement on critical minerals and rare earths

Brazil and India signed an understanding agreement on rare earths and critical minerals this Saturday, 21st, announced Indian Prime Minister, Narendra Modi, after meeting with President Luiz Inácio Lula da Silva, in New Delhi. Details of the resolution were not disclosed.

“Increasing investments and cooperation in renewable energy and critical minerals is at the heart of the pioneering agreement we signed today”, detailed Lula in a statement to the press. Modi, on the other hand, classified the resolution as “an important step towards building resilient supply chains”.

Brazil has the world’s second largest reserves of these materials, needed to manufacture products ranging from electric vehicles, solar panels and smartphones to aviation engines and guided missiles.

India, which seeks to reduce dependence on China, the main exporter and which dominates the supply chain for most of these minerals, has expanded national production and recycling at the same time as it seeks new suppliers.

The countries also signed other agreements related to digital cooperation and equitable access to medicines.

“Brazil is India’s largest trading partner in Latin America, and we are committed to taking our bilateral trade to around US$20 million over the next five years,” detailed Modi. In his statement, Lula highlighted the alliance with India as a “response to commercial unilateralism.”