Brazilian President Luiz Inacio Lula da Silva met Indian Prime Minister Narendra Modi in New Delhi on Saturday and discussed boosting trade and investment opportunities, News.Az reports, citing Al Jazeera.
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Modi said in a statement that the agreement on critical minerals and rare earths was a “major step towards building resilient supply chains”.
China dominates the mining and processing of the world’s rare-earth and critical minerals, and has increased its grip on exports in recent months as the United States attempts to break its hold on the growing industry.
Still, for Brazil, which follows China as the world’s second-largest holder of critical minerals, its resources are used across a range of fields, including electric vehicles, solar panels, smartphones, jet engines, and guided missiles.
In a statement, Lula said, “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.”
While few details have emerged about the mineral deal so far, demand for iron ore, a material for which Brazil is the second-largest producer and exporter after Australia, in India has grown amid rapid infrastructure expansion and industrial growth.
Rishabh Jain, an expert with the New Delhi-based Council on Energy, Environment and Water think tank, told the AFP news agency that India’s growing cooperation with Brazil on critical minerals follows recent supply chain engagements with the US, France and the European Union.
“Global South alliances are critical for securing diversified, on-ground resource access and shaping emerging rules of global trade”, Jain told AFP.
