Brazilian President Luiz Inácio Lula da Silva and Indian Prime Minister Narendra Modi are set to discuss a cooperation agreement aimed at bolstering mining and processing of rare earth elements. This initiative is a significant step towards reducing their countries' dependency on China, which currently holds a monopoly over critical mineral resources. The leaders will meet in New Delhi this week, amidst efforts to strengthen bilateral relations and address pressing global challenges.

The cooperation talks will also encompass other pressing matters such as the exploration of new markets, including agribusiness, regulations surrounding artificial intelligence, and various agreements concerning critical minerals and rare earths. Both Brazil and India possess substantial reserves of these valuable minerals necessary for energy transition technologies, trailing only China in terms of resources. However, they currently face challenges in their mining and processing capacities, with Brazil's industry still lagging behind India's.

This partnership could have far-reaching implications, not just for Brazil and India but also for their efforts to secure a more balanced global supply chain for rare earth elements. As demand for these minerals continues to rise in the context of green technologies, diversifying sourcing options away from Chinese dominance could enhance economic stability and strengthen international cooperation between these two emerging economies.