India Seeks Critical Minerals Partnerships with France, Brazil, and Canada to Decrease Dependence on China
India is actively engaging with Brazil, Canada, France, and the Netherlands to forge agreements aimed at the joint exploration, extraction, processing, and recycling of critical minerals. This initiative is part of India’s broader strategy to secure essential raw materials necessary for its energy transition. The discussions, which are reportedly confidential, primarily focus on lithium and rare earth elements, while also seeking access to advanced mineral-processing technologies. This move underscores New Delhi’s commitment to diversifying its supply chains, particularly in light of the heavy reliance on China, which currently dominates the global market for these vital resources.
Reducing Reliance on China, Boosting Energy Transition
India’s outreach to various countries comes as it accelerates its plans to reduce carbon emissions and meet the increasing demand from its industrial and infrastructure sectors. Mining experts have pointed out that India’s dependence on China for critical minerals highlights the necessity of forming partnerships with a broader range of nations. However, they also caution that mining projects require significant time to develop, with exploration phases typically lasting between five to seven years, and often not leading to immediate commercial production. In a bid to strengthen its position, India is looking to replicate aspects of a critical minerals agreement it signed with Germany earlier this year. This agreement encompasses exploration, processing, recycling, and the acquisition and development of mineral assets in both countries and third-party nations.
Ministry of Mines Leads Outreach, Canada Deal Under Review
The Ministry of Mines is spearheading these discussions, with reports indicating that agreements with France, the Netherlands, and Brazil are in progress, while a deal with Canada is currently under active consideration. Notably, Canada’s Prime Minister Mark Carney is expected to visit India in early March, where discussions may include agreements related to uranium, energy, minerals, and artificial intelligence. When approached for comment, Canada’s natural resources department referred to a statement from January, which indicated that both nations had agreed to formalize cooperation on critical minerals in the near future.
Wider Global Push for Critical Minerals
India has already established critical minerals agreements with countries such as Argentina, Australia, and Japan, and is currently in negotiations with Peru and Chile to expand bilateral pacts that cover these resources. This expanded engagement aligns with the global trend among major economies to reduce their dependence on China for rare earth elements. Recently, finance ministers from the G7 and other nations convened in Washington to discuss strategies for supply diversification. In 2023, India identified over 20 minerals, including lithium, as “critical” for its energy transition and long-term economic objectives, reflecting its commitment to securing a stable supply of essential materials for future growth.
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