India and Russia Draw Closer on Rare Earths as BRICS Mineral Strategy Gains Momentum

Highlights

• India and Russia are nearing a preliminary critical minerals agreement covering rare earths, lithium, exploration, processing, and technology cooperation.
• Neither India nor Russia currently has a competitive mine-to-magnet ecosystem, leaving both dependent on China for refining and magnet manufacturing.
• BRICS nations are building parallel critical mineral networks, but real supply security requires processing plants, magnet factories, and commercial execution.
• India has also signed rare earth agreements with Brazil and is pursuing domestic processing capacity and magnet production to reduce strategic vulnerabilities.

India and Russia are moving closer to a critical minerals partnership centered on rare earths and lithium, signaling a broader shift in how BRICS nations are attempting to reduce dependence on Western-controlled supply chains while navigating China's dominant position in processing and magnet manufacturing.

A New Mineral Axis Emerges

The rare earth story is no longer just China versus the West. India and Russia are advancing discussions on a critical minerals pact covering exploration, processing, technology cooperation, and corporate investment, with rare earths and lithium at the center of negotiations. Reuters reported last month that both governments are nearing a preliminary agreement designed to accelerate mineral development and downstream collaboration. The move fits a broader pattern. India recently signed rare earth and critical minerals agreements with Brazil, expanded domestic rare earth corridor initiatives, and is courting major industrial groups to develop processing capacity and magnet production.

The Missing Piece Remains China

What many headlines omit is the uncomfortable reality: neither India nor Russia currently possesses a globally competitive mine-to-magnet ecosystem. Russia has resources. India has demand and industrial ambition. Yet both remain constrained by limited refining, metallization, alloying, and magnet manufacturing capacity compared with China.

The REEx Take

This is strategically significant. BRICS nations are increasingly building parallel critical mineral networks. But investors should remember that supply security is not created by signing agreements. It is created by processing plants, magnet factories, technical know-how, and commercial execution.

The India-Russia partnership may be growing. The real test begins downstream.

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