Key facts
- Brazil is emerging as a significant source of rare earths for India's energy transition, electric vehicles, and semiconductor industries.
- Brazil possesses an estimated 21 million tonnes of rare earth elements, approximately 25% of global reserves.
- The country also holds substantial reserves of graphite (26% of global), niobium (over 90%), nickel, lithium, and copper.
- India is seeking to diversify its critical mineral sourcing beyond China, which dominates global rare earth processing.
- India is also exploring mineral sourcing opportunities with Chile, Argentina, Peru, and Venezuela.
Brazil is positioning itself as a crucial supplier of rare earth elements and other critical minerals to India, aiming to bolster India's energy transition, electric vehicle production, and semiconductor industry while reducing reliance on China. With an estimated 21 million tonnes of rare earth elements, Brazil holds about a quarter of the world's reserves, second only to China. The country also boasts significant deposits of graphite, niobium, nickel, lithium, and copper.
During President Luiz Inacio Lula da Silva's visit to India in February, both nations agreed to accelerate collaboration in this sector. Brazil is actively seeking foreign investment and working to develop its domestic refining and processing capabilities. Untapped deposits in Brazilian states like Goias and Minas Gerais are attracting international exploration.
Beyond Brazil, India is actively pursuing critical mineral sources in other South American nations. Chile is a key focus, with ongoing negotiations for a comprehensive economic partnership agreement that includes major mining opportunities in copper and lithium, of which it holds substantial global reserves. India has also initiated discussions with Venezuela for sourcing critical minerals.