Brazil, India Seal Rare Earth Deal Amid Global Supply Strains

Article content(Bloomberg) — Brazil and India sealed a framework pact on critical minerals with the two countries agreeing to work closely on processing in a move aimed at securing rare earth supplies at a time of global disruption. Sign In or Create an AccountEmail AddressContinueor View more offersArticle content“The critical minerals agreement will help shape a new and resilient supply chain,” Prime Minister Narendra Modi said after meeting President Luiz Inacio Lula da Silva in New Delhi on Saturday. Lula arrived on Wednesday for three-day visit. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentBrazil, home to the world’s second-largest reserves of rare earths, offers India a potential alternative source of supply as it seeks to reduce reliance on China and secure inputs critical for electronics, clean energy and defense. The deal comes soon after India joined the US-led Pax Silica initiative to build resilient supply chains in semiconductors, artificial intelligence, and critical minerals.Article contentArticle contentBeijing’s grip on the supply of critical minerals required for high-end manufacturing and defense is a growing concern for countries around the world, especially developing economies such as India. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentBrazil and India are strengthening cooperation, in part to emerge as leading voices for the developing world and seek greater influence over the technologies and supply chains reshaping the global order. Modi visited Brazil in July, where the two agreed to work closely on defense, energy, food security, and to reduce “non-tariff barriers” to increase trade, according to a joint statement at the time of the visit.Article contentNew Delhi and Brasilia sought closer ties after US President Donald Trump slapped both countries with 50% tariffs. Indian tariffs were subsequently lowered to 18% after it signed a trade deal earlier this month.Article contentNow, that agreement has potentially been upended by the US Supreme Court ruling Friday which struck down many of the levies President Donald Trump put in place last year. After the ruling, Trump imposed a 10% global tariff on foreign goods. Article contentIndia and Brazil want to move into processing of critical minerals rather than remain suppliers of raw materials. China currently dominates both extraction and processing, with countries including the US racing to secure alternative sources and partnerships. Article content“Increasing investments and cooperation in matters of renewable energy and critical minerals is at the core of a pioneering agreement that we have signed today,” Lula said.Article contentTrending Posthaste: U.S. tariffs against Canada keep falling, but is that just the quiet before the CUSMA storm? News These are the TSX stocks that could be winners from Mark Carney's defence industrial strategy Investor Posthaste: CIBC warns Canada's housing market is in rougher shape than we thought News What you need to know about filing to the CRA this year as tax season looms Personal Finance Matthew Holmes: Canada–Mexico plus U.S. businesses make for a winning formula Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Posthaste: U.S. tariffs against Canada keep falling, but is that just the quiet before the CUSMA storm? News These are the TSX stocks that could be winners from Mark Carney's defence industrial strategy Investor Posthaste: CIBC warns Canada's housing market is in rougher shape than we thought News What you need to know about filing to the CRA this year as tax season looms Personal Finance Matthew Holmes: Canada–Mexico plus U.S. businesses make for a winning formula Economy