India might soon ink critical minerals pact with Russia
What's the story
India and Russia are in advanced talks to sign a preliminary agreement on critical minerals, as per Reuters. The proposed deal will cover exploration, processing, and technological collaboration. It is expected to focus on lithium and rare earths. The two governments are also likely to facilitate corporate investments under this agreement.
Draft shared
Draft of proposed agreement shared with Russia
A source familiar with the matter said to Reuters, "We have shared a draft of the proposed agreement with our Russian counterparts." The agreement is likely to be signed within two months. However, official responses from India's Ministry of Mines and Russia's Ministry of Industry and Trade are awaited on this development.
Diversification efforts
India aims to lower reliance on China
India aims to reduce its reliance on China, which dominates global supplies of several key minerals and advanced mining technology. The country is looking for new overseas supplies to support its energy transition and infrastructure development. To this end, India has signed critical mineral agreements with Argentina, Australia, and Japan. It is also in talks with Peru and Chile for broader bilateral agreements that include critical minerals.
Global partnerships
Strategy to diversify sources of critical minerals
This year, India has signed a series of deals with Germany, Brazil, and Canada to strengthen access to technology and partnerships. The government has also identified more than 20 minerals, including lithium, as critical for its energy transition and rising industrial demand.