Key facts
- India and Ecuador are discussing increasing sales of Ecuadorean crude oil, copper, and critical minerals to India.
- Ecuador plans to invite Indian companies to invest in its oil and minerals sector.
- India is the world's third-largest crude oil importer.
- Indian Oil Corporation bought its first-ever crude from Ecuador earlier this year.
- India has been seeking to tap energy resources from South America to reduce dependence on China's critical minerals industry.
- India and Argentina signed an MoU to strengthen cooperation in lithium mining.
India is in talks with Ecuador to boost imports of crude oil and critical minerals, according to Fernando Buchelli, the Ecuadorean ambassador to India. The South American nation is also looking to attract Indian investment in its oil and mining sectors.
India, a major global crude oil importer, has been actively seeking to diversify its energy and critical mineral sources, aiming to reduce reliance on China. Earlier this year, Indian Oil Corporation (IOC) made its first-ever purchase of crude oil from Ecuador as part of efforts to replace Russian supplies affected by U.S. sanctions.
Refiners in India have increasingly turned to South American suppliers, including Brazil, Venezuela, and Ecuador, to compensate for supply disruptions in the Middle East. Ecuador's offer presents an opportunity for Indian companies to invest in its oil and critical minerals sector, thereby securing further supplies of crude and copper.
This initiative aligns with India's broader strategy to strengthen ties in the critical minerals sector. Last year, India and Argentina signed a memorandum of understanding to enhance cooperation in lithium mining, a key component for battery production.