Published: 20 February 2026Al JazeeraEconomy
India-Brazil Sign Critical Minerals and Rare Earth MoU to Curb China Dependence
Brazilian President Luiz Inacio Lula da Silva and PM Modi signed a Memorandum of Understanding on critical minerals and rare earth elements in New Delhi on February 21, 2026. Brazil has the world's second-largest reserves of critical minerals used in EVs, solar panels, smartphones, and defence equipment.
The MoU establishes a framework for cooperation across the full mineral value chain — exploration, mining, processing, recycling, and refining — to strengthen supply chains and reduce dependence on China, the top global exporter. Prime Minister Modi said India is committed to taking bilateral trade beyond $20 billion over the next five years. The agreement includes cooperation on AI applications in mineral exploration and sustainable mining practices.
0Mains angle
Q: Analyse the strategic importance of the India-Brazil Critical Minerals MoU signed on 21 February 2026 for India's supply-chain security.
Answer (50 words):
India and Brazil signed a Critical Minerals MoU in New Delhi on 21 February 2026; Presidents Lula and PM Modi agreed on cooperation across exploration, mining, processing and refining. Brazil holds the world's second-largest critical minerals reserves. The pact targets doubling bilateral trade from $15 to $30 billion by 2030.
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Frequently asked questions
What MoU did India and Brazil sign in February 2026 on critical minerals?
**Brazilian President Luiz Inácio Lula da Silva** and **PM Modi** signed a **MoU on critical minerals and rare earth elements** in **New Delhi on February 21, 2026**. Brazil has the **world's second-largest reserves** of critical minerals used in EVs, solar panels, smartphones, and defence equipment.
What is the scope of India-Brazil critical minerals MoU 2026?
The MoU establishes a framework for cooperation across the **full mineral value chain** — exploration, mining, processing, recycling, and refining — to **reduce dependence on China** which dominates 60-80% of global critical mineral processing.
Which critical minerals are most important for India under the India-Brazil MoU?
Key minerals include **lithium, cobalt, nickel, graphite** (for EV batteries); **rare earth elements** (for defence electronics, wind turbines, EVs); **niobium** (for high-strength steel); and **manganese** — all areas where Brazil has significant reserves critical for India's energy transition.
Why is Brazil's critical minerals partnership strategically important for India?
Brazil is strategically important because it holds the **world's second-largest critical mineral reserves** and is geopolitically independent of China. India-Brazil cooperation reduces India's **supply chain vulnerability** as India accelerates its EV, renewable energy, and defence manufacturing sectors.
What is India's broader critical minerals strategy?
India's critical minerals strategy includes: **Khanij Bidesh India Ltd (KABIL)** for overseas mineral acquisition; MoUs with **Australia, Argentina, Chile, Brazil**; the **Critical Minerals Mission** under Budget 2024; and **recycling ecosystem development** to recover minerals from e-waste.
