Story perspectives

Brazil and India Forge Critical Minerals Deal to Reduce China Dependency

2/23/2026

Center

Modi and Lula Strengthen Trade

Brazil and India formalized a framework on critical minerals and rare earths to secure alternative sources amid global supply disruptions.
The deal aims to reduce India's reliance on China, which dominates the sector.
During Prime Minister Narendra Modi's and President Luiz Inácio Lula da Silva's visit, they discussed expanding bilateral trade beyond $20 billion by 2030, addressing U.S. tariff changes, and emphasizing multilateralism in artificial intelligence for inclusive technology governance.

Right

Vale Seizes India's Growth

Vale sees potential in India's growth akin to China's early 2000s boom.
Gustavo Pimenta, Vale's chief executive officer, said India's steel output could double to 300 million tonnes, driving significant ore imports.
Last year, Vale sold 10 million tonnes to India.
Vale plans to establish a blending hub to combine high-grade Brazilian ore with local supplies, providing a cleaner feedstock for Indian steelmakers.

History

Historical Context

Brazil and India have enhanced their economic partnership through the BRICS alliance, established in 2006, which promotes cooperation among emerging economies. In 2021, Brazil exported $10 billion in goods to India, reflecting significant trade growth. Their recent agreement on critical minerals aims to reduce India's dependence on China, potentially reshaping global mineral markets as India's steel output is expected to double.

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Modi and Lula Strengthen Trade

Brazil and India formalized a framework on critical minerals and rare earths to secure alternative sources amid global supply disruptions.
The deal aims to reduce India's reliance on China, which dominates the sector.
During Prime Minister Narendra Modi's and President Luiz Inácio Lula da Silva's visit, they discussed expanding bilateral trade beyond $20 billion by 2030, addressing U.S. tariff changes, and emphasizing multilateralism in artificial intelligence for inclusive technology governance.

1 / 3