Brazil has inked a rare earths deal with India, supporting stronger supply chains and much-need capacity expansion amid growing domestic demand in the South Asian country. Brazilian President Luiz Inácio Lula da Silva, in New Delhi for a three-day visit, witnessed the signing alongside his Indian counterpart Prime Minister Narendra Modi, reports Reuters.
Brazil boasts the world’s second-largest reserves of rare earth minerals, including those critical to steelmaking, and is among the world’s top producers of iron ore. Closer cooperation is expected to boost India’s access to raw materials and technologies to keep its steel sector humming long term, according to an Indian government statement. It will focus on attracting investment in exploration, mining and steel sector infrastructure.
India’s steelmaking capacity currently stands at 218 million metric tons and companies are expanding to meet demand driven by infrastructure development and industrialisation.
Brazil is well-suited to take advantage of that opportunity, capitalising on its growing strength as a global mining giant. Iron ore exports from the country hit a record high of 416.4 million metric tons in 2025, exceeding 400 million metric tons for the first time in its history.
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Beyond supplying raw materials, the deal also provides an institutional framework for mineral processing and recycling technologies, as well as artificial intelligence to enhance exploration processes. Brazil’s Ministry of Mines and Energy and India’s Ministry of Steel will lead efforts to integrate these advanced technologies into the steel value chain.
Securing new suppliers also offers India a more resilient supply chain in this key sector and Brazil stands out among recent supply chain engagements as the only fellow member of the Global South.
The two BRICS members, who mark the 20th anniversary of their strategic partnership this year, also plan to ramp up trade considerably. “We are committed to taking bilateral trade much beyond US$20 billion in the next five years,” said Modi, up from around US$15 billion currently.
“Our trade is not just a figure, but a reflection of trust,” Modi said, adding that “When India and Brazil work together, the voice of the Global South becomes stronger and more confident.”
