Trade to critical minerals: India, Brazil for a stronger Global South
Brazilian President Luiz Inácio Lula da Silva undertook a state visit to India on February 21, 2026, meeting Prime Minister Modi at Hyderabad House, New Delhi
The two leaders signed three key Memoranda of Understanding (MoUs): a Joint Declaration on Digital Partnership for Future, an MoU on Cooperation in Rare Earth and Critical Minerals, and an MoU for Cooperation in Mining in the Steel Supply Chain
India and Brazil agreed to double bilateral trade to $30 billion by 2030 (current trade is approximately $15 billion)
Modi stated that "when India and Brazil work together, the voice of the Global South becomes stronger and more confident"
Brazil is the world's second-largest holder of critical mineral and rare earth reserves after China, with only 30% of reserves yet explored
The partnership is explicitly framed as reducing dependence on China's dominance in critical mineral supply chains
Both countries are members of BRICS, G20, IBSA (India-Brazil-South Africa Dialogue Forum), and BASIC climate negotiating bloc
Critical Minerals and the Global Supply Chain Contest
Critical minerals are raw materials essential for modern technologies — from electric vehicles and solar panels to smartphones, guided missiles, and wind turbines. They include rare earth elements (REEs), lithium, cobalt, nickel, manganese, and graphite. China currently dominates global critical mineral supply chains, controlling over 60% of rare earth production and 80% of rare earth processing capacity globally. India and Brazil, both resource-rich, are seeking to develop alternative supply chains.
Key Details
- 17 rare earth elements (REEs) include lanthanum, cerium, neodymium, praseodymium, dysprosium (used in EV motors and wind turbines)
- China's dominance: controls roughly 60% of global REE mining output and ~80% of processing
- Brazil's REE reserves: estimated at approximately 21 million metric tonnes — second globally after China
- India's critical mineral resources: significant reserves of lithium (Jammu), cobalt, nickel, rare earths (Odisha, Andhra Pradesh, Kerala)
- India's National Critical Mineral Mission (2024): identifies 30 critical minerals for strategic focus
- Australia, Canada, and the US have formed the Minerals Security Partnership (MSP) to counter China's dominance — India joined MSP in 2023
The India-Brazil critical minerals MoU directly addresses the supply chain vulnerability both nations share — India as a large importer of minerals for its green energy and defence sectors, Brazil as a mineral-rich country seeking processing partnerships beyond China.
Global South: Strategic and Political Significance
The term "Global South" broadly refers to developing and emerging economies, predominantly located in Asia, Africa, and Latin America. India and Brazil are among the largest economies in this grouping, with both countries advocating for greater representation of developing nations in global governance institutions such as the UN Security Council, the IMF, and the WTO. Their partnership is particularly significant given both are members of BRICS, G20, IBSA, and BASIC — multilateral forums where they align on issues of trade, climate finance, and reform of international institutions.
Key Details
- BRICS: Brazil, Russia, India, China, South Africa (expanded in 2024 to include UAE, Egypt, Ethiopia, Iran, Indonesia); India holds BRICS presidency in 2026
- G20: Both India and Brazil have recently held presidencies (India 2023, Brazil 2024)
- IBSA Dialogue Forum: India-Brazil-South Africa trilateral, focused on South-South cooperation
- BASIC: Climate negotiating bloc (Brazil, South Africa, India, China) — coordinates at UNFCCC COPs
- Voice of Global South Summits: India has hosted two editions (2023, 2024) to aggregate developing country positions
The Modi-Lula summit's framing around "Global South voice" signals a deliberate diplomatic strategy of South-South leadership, positioning India and Brazil as counterweights to both Western-led and China-dominated frameworks in global governance.
India's Strategic Minerals Diplomacy
India has pursued active minerals diplomacy with multiple countries as part of its broader energy transition and strategic supply chain security goals. The National Critical Mineral Mission (2024) identified 30 critical minerals and tasked public sector companies like KABIL (Khanij Bidesh India Ltd) — a joint venture of NALCO, HCL, and MECL — to acquire mineral assets abroad. India has signed mineral cooperation agreements with Australia, Argentina, Chile, and now Brazil as part of this strategy.
Key Details
- KABIL (Khanij Bidesh India Ltd): Joint venture of NALCO, HCL, and MECL for overseas mineral acquisition
- India signed a lithium deal with Argentina in 2022 and has MOUs with Australia for critical minerals
- India's own lithium reserves: significant deposits discovered in Salal-Haimana, Reasi district, Jammu (2023) — estimated 5.9 million tonnes
- India's EV Mission and PLI Scheme for Advanced Chemistry Cell Batteries — both dependent on secure mineral supply
- India's National Critical Mineral Mission (2024) — identifies 30 minerals, allocates funds for domestic exploration
The Brazil critical minerals MoU fits directly into India's expanding minerals diplomacy network, diversifying supply sources for the green energy transition and reducing strategic dependence on China-controlled supply chains.
- India-Brazil bilateral trade target: $30 billion by 2030 (from current ~$15 billion)
- MoUs signed: 3 (Digital Partnership, Critical Minerals/Rare Earths, Mining for Steel Supply Chain)
- Brazil's rare earth reserves: ~21 million metric tonnes (2nd globally after China)
- Brazil: only 30% of mineral reserves explored — substantial untapped potential
- China's global REE mining share: approximately 60%
- India's critical minerals: 30 identified under National Critical Mineral Mission (2024)
- KABIL: Joint venture of NALCO, HCL, MECL for overseas minerals acquisition
- BRICS membership: India holds 2026 presidency (took over from Brazil on January 1, 2026)
- IBSA members: India, Brazil, South Africa
- Modi's statement: "When India and Brazil work together, the voice of the Global South becomes stronger"
- India joined Minerals Security Partnership (MSP): 2023