Brazil, India Strike Partnership Deal on Critical Minerals and Rare Earth Elements

Two major developing nations have signed a cooperation agreement focused on rare earth minerals and critical resources. The partnership aims to reduce dependence on China and the U.S. through strategic diversification of trading relationships.

Two of the world’s largest developing economies have forged a new partnership centered on critical minerals and rare earth elements, as both nations work to expand their global trade relationships beyond traditional powers.

During a state visit to India on Saturday, Brazilian President Luiz Inácio Lula da Silva and Indian officials finalized a memorandum of understanding that creates a cooperation framework between the nations. The agreement covers mutual investment opportunities, resource exploration, mining operations, and artificial intelligence development.

Brazil holds the planet’s second-largest deposits of rare earth minerals, which are essential components in smartphones, electric cars, solar energy systems, and aircraft engines.

“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,” Brazilian President Luiz Inácio Lula da Silva told journalists.

The countries also established legal frameworks covering entrepreneurship, healthcare, scientific research, and educational initiatives.

Lula’s diplomatic mission to India began Wednesday and continues through Sunday, marking an effort to strengthen relationships with India, which like Brazil belongs to the BRICS+ alliance of developing countries. The Brazilian leader also took part in an artificial intelligence conference during his visit.

This follows Indian Prime Minister Narendra Modi’s visit to Brazil in July of the previous year, making Lula’s current trip his second state visit to India.

Eleven Brazilian ministers joined Lula’s delegation, including the heads of foreign affairs, finance, health, and agriculture departments, along with numerous business executives. Lula described it Saturday as potentially his largest overseas delegation to date, demonstrating his dedication to the India relationship.

According to Oliver Stuenkel, who teaches international relations at the Getulio Vargas Foundation think tank, this rare earths agreement represents part of a larger plan by both India and Brazil to gain strategic independence from China and the United States through partnership diversification.

Stuenkel noted that Brazil has pursued this approach for several years, enabling Lula to resist pressure from President Donald Trump when the U.S. imposed a 50% tariff on Brazilian goods following legal proceedings against former President Jair Bolsonaro, Trump’s political ally.

“The reading is that, given how turbulent and unpredictable things have become, the more partners, the better,” Stuenkel said.

The United States subsequently lifted most Brazilian tariffs and sanctions against the judge handling the case.

Roberto Goulart Menezes, who teaches international relations at the University of Brasilia, explained that Brazil’s confrontation with the U.S. sparked the concept of leveraging rare earths and critical minerals in diplomatic negotiations.

“Brazil began to reposition its understanding of the importance of these elements beyond their commercial dimension, recognizing their geopolitical relevance,” said Goulart.

Lula plans to meet with his American counterpart in Washington D.C. in the coming months. “For Brazil, this agreement represents a kind of pilot before negotiating with a country with which Brazil has an asymmetrical relationship,” Goulart said.