India and Brazil reinforced their partnership by signing a framework agreement aimed at improving collaboration in the field of rare earth minerals. This agreement comes during a time of increasing global supply chain disruptions, keeping in mind the importance of securing a steady supply of these vital materials. The signing event took place in New Delhi, following a three-day visit by Brazilian President Luiz Inácio Lula da Silva, who was accompanied by a significant delegation of Brazilian ministers and business leaders.

Prime Minister Narendra Modi spoke about the significance of the deal, stating that it marks a major step toward building resilient supply chains. He emphasized that the vital minerals agreement will contribute to the formation of a new, more robust supply chain. Lula echoed these sentiments, highlighting that increased investments and cooperation regarding renewable energy and rare earth minerals are central to their groundbreaking agreement.

Brazil has the second-largest global reserves of rare earth elements, which are critical for various industries including electric vehicles, solar panels, smartphones, and aircraft engines. This agreement not only strengthens the ties between India and Brazil but also positions them as alternative sources of these crucial materials, reducing dependence on China, which has dominated the rare earth market for years.