Reducing China dependence: India eyes critical minerals deals with France, Brazil, Canada, says report


Reducing China dependence: India eyes critical minerals deals with France, Brazil, Canada, says report

India is in discussions with Brazil, Canada, France and the Netherlands to strike agreements for jointly exploring, extracting, processing and recycling critical minerals, as the country steps up efforts to secure key raw materials for its energy transition.The talks are focused mainly on lithium and rare earth elements, with India also seeking access to advanced mineral-processing technologies, sources quoted by news agency Reuters said, adding that the discussions are confidential. The move reflects New Delhi’s push to diversify supply chains amid heavy global dependence on China, which dominates the mining and processing of several critical minerals.

Reducing reliance on China, boosting energy transition

India’s outreach comes as it accelerates plans to cut emissions and meet rising demand from industry and infrastructure. Mining experts cited by Reuters said India’s reliance on China for many critical minerals underlines the need to partner with a wider group of countries. However, they cautioned that mining projects take time to mature, with exploration alone typically lasting five to seven years and often not leading to commercial production.According to sources, India is looking to replicate elements of a critical minerals agreement it signed with Germany in January. That pact covers exploration, processing and recycling, as well as the acquisition and development of mineral assets in both countries and in third nations.

Ministry of mines leads outreach, Canada deal under review

“There are requests and we are talking to France, Netherlands and Brazil while the agreement with Canada is under active consideration,” one source said, as per Reuters. The ministry of mines is leading the effort.Canada’s Prime Minister Mark Carney is expected to visit India in early March, during which deals related to uranium, energy, minerals and artificial intelligence may be signed. When contacted, Canada’s natural resources department referred to a January statement saying both countries had agreed to formalise cooperation on critical minerals in the coming weeks.

Wider global push for critical minerals

India has already signed critical minerals agreements with Argentina, Australia and Japan, and is in talks with Peru and Chile on broader bilateral pacts that also cover such resources, according to Reuters.The expanded engagement comes amid efforts by major economies to reduce dependence on China for rare earths. Finance ministers from the G7 and other countries met in Washington last month to discuss supply diversification. In 2023, India identified more than 20 minerals, including lithium, as “critical” for its energy transition and long-term economic needs.



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