India Negotiates Critical Minerals Agreements with Four Major Powers

Key Information

India is engaging in multiple bilateral negotiations with Brazil, Canada, France, and the Netherlands to guarantee access to critical minerals. The primary goal is to secure supplies of lithium and rare earths, which are essential for India’s energy transition and advanced technology industries.

Key Points

• Advanced discussions between India and four major global producers focusing on the exploration, extraction, processing, and recycling of strategic minerals.
• Special emphasis on lithium and rare earths, which are vital for battery production chains and electronic components. An agreement with Germany signed in January 2024 serves as inspiration for this approach.
• The effort aims to reduce dependence on China, the world leader in critical mineral processing.

Background and Stakes

Access to critical minerals is increasingly subject to regulatory and diplomatic safeguards in the context of a global energy transition. The mining process—from discovery to industrial operation—can take up to 7 years, involving significant investments and high technical risks. Worldwide dependence on China’s refining capacity is intensifying tensions across value chains. Cooperation agreements, which have expanded since January inspired by the German-Indian example, cover exploration, extraction, recycling, and technology transfer. This strategy is also part of India’s broader policy, with recent or upcoming agreements involving Australia, Argentina, Japan, Peru, and Chile.

Impact for Professionals

For importers, exporters, and customs declarants, these discussions are paving the way for new trade flows in critical minerals, potentially involving specific tariff regimes and new traceability requirements. Companies must anticipate potential access to new markets and adapt their procedures to ensure regulatory compliance with the new bilateral agreements. Industrial players in the battery, electronics, and renewable energy sectors are directly impacted by this diversification of supply sources.

Next Steps

• Agreement signings expected as early as March 2024 during a high-level diplomatic visit between Canada and India.
• Further announcements with Brazil, France, and the Netherlands are likely over the course of 2024.
• Monitoring regulatory developments on critical minerals and preparing for future tenders or reporting requirements.

L’Inde accélère la sécurisation de matières premières critiques pour réduire sa dépendance à la Chine et soutenir sa transition industrielle.
(India is accelerating the securing of critical raw materials to reduce its dependence on China and support its industrial transition.)