India, Brazil Sign Rare Earths Pact to Strengthen Steel Supply Chains and Global South Ties

Brazil has signed a rare earths agreement with India, aimed at reinforcing supply chains and supporting much-needed capacity expansion as domestic demand rises in the South Asian country. Brazilian President Luiz Inácio Lula da Silva, who is on a three-day visit to New Delhi, witnessed the signing alongside Indian Prime Minister Narendra Modi, according to Reuters.

Brazil holds the world’s second-largest reserves of rare earth minerals, including materials vital for steelmaking, and ranks among the leading global producers of iron ore. Closer collaboration is expected to enhance India’s access to raw materials and technologies needed to sustain long-term growth in its steel sector, an Indian government statement said. The partnership will also focus on attracting investment into exploration, mining and steel-sector infrastructure.

India’s steelmaking capacity currently stands at 218 million metric tons, with companies expanding operations to meet demand driven by infrastructure development and rapid industrialisation.

Brazil is well positioned to capitalise on this opportunity, building on its growing stature as a global mining powerhouse. Iron ore exports from the country reached a record 416.4 million metric tons in 2025, crossing the 400 million metric ton mark for the first time in its history.

Beyond raw material supply, the agreement also creates an institutional framework for mineral processing and recycling technologies, along with the use of artificial intelligence to improve exploration processes. Brazil’s Ministry of Mines and Energy and India’s Ministry of Steel will jointly lead efforts to integrate these advanced technologies across the steel value chain.

Securing additional suppliers also gives India a more resilient supply chain in this strategic sector, with Brazil standing out among recent engagements as the only partner from the Global South.

The two BRICS members, marking the 20th anniversary of their strategic partnership this year, also plan to significantly expand bilateral trade. “We are committed to taking bilateral trade well beyond US$20 billion in the next five years,” Modi said, up from about US$15 billion at present.

“Our trade is not just a number, but a reflection of trust,” Modi added, noting that “when India and Brazil work together, the voice of the Global South becomes stronger and more confident.”