Highlights

• India's Ministry of Mines is negotiating rare earth element partnerships with Brazil and the Dominican Republic.
• The initiative aims to de-risk supply chains and secure non-Chinese critical mineral resources.
• Potential partnerships could support India's defense, space, and green technology sectors.

India’s Ministry of Mines (opens in a new tab) is actively pursuing government-to-government agreements with Brazil and the Dominican Republic to secure cooperation in rare earth elements (REEs) and other critical minerals, according to a ministerial statement presented in Parliament on Wednesday. The disclosure marks a significant strategic pivot as India intensifies efforts to diversify and de-risk its supply chains amid growing global competition over critical resources.

While details remain sparse, the initiative is aligned with India’s broader national critical minerals strategy and comes amid ongoing efforts to ramp up domestic exploration and processing capacity. The move signals India’s intent to join like-minded democracies in securing upstream access to non-Chinese rare earth resources across Latin America and the Caribbean.

Brazil is a particularly notable partner, with abundant rare earth-bearing monazite and ionic clay deposits and recent foreign investor interest in regions like Minas Gerais and Bahia. The Dominican Republic, though smaller in mineral base, has increasingly positioned itself as an emerging partner in green economy materials, including REE-adjacent sectors such as cobalt and nickel.

India has already signed similar pacts with Australia and is in exploratory discussions with countries across Africa and Southeast Asia.

Critical Questions for Investors

• Will India seek equity positions or offtake agreements in Brazilian or Dominican REE projects?
• Could these bilateral deals include technology transfer, co-processing, or joint refining ventures?
• How will these partnerships align with India’s defense and Space sector's needs for magnet-grade REEs, such as NdPr, Dy, and Tb?
• What political or environmental risks could complicate project development in partner countries?

REEx Take: India’s outreach to Brazil and the Dominican Republic reflects the global scramble to secure rare earth assets beyond China. While in the early stages, these government-to-government talks could lay the foundation for long-term supply deals or co-development projects that benefit Indian industry and global supply chain resilience. Retail investors should watch for any JV announcements or exploration licenses that emerge from these diplomatic overtures.

Source: The Economic Times (opens in a new tab) | Author: Reuters