India and Russia are in the final stages of talks to form an initial agreement regarding critical minerals. This deal will focus on areas like exploration, processing, and technological partnerships, as reported by two knowledgeable sources.
### A New Direction Away from China
The upcoming agreement aims to concentrate on lithium and rare earth elements. The two nations plan to encourage corporate investments as part of this collaboration, although the sources chose to remain anonymous due to the private nature of these discussions. They noted that the signing could happen within the next two months.
One source mentioned, “We have shared a draft of the proposed agreement with our Russian counterparts.”
The Ministry of Mines in India, which is spearheading the discussions with Russia, did not respond when asked for comments. Similarly, inquiries to Russia’s Ministry of Industry and Trade went unanswered.
India is eager to reduce its reliance on China, which currently controls a significant portion of global mineral supplies and possesses advanced mining technologies. The goal is to secure new sources of minerals to aid in the country’s energy shift and infrastructure growth.
### Navigating Challenges and Building Partnerships
New Delhi has already entered agreements with Argentina, Australia, and Japan over critical minerals and is in conversations with Peru and Chile for broader deals that also encompass these resources.
However, India’s journey towards obtaining overseas critical minerals has faced hurdles. It has managed to secure only one lithium exploration and mining agreement, covering five blocks in Argentina, which was finalized in 2024.
There are also talks about revisiting a lithium project in Mali, led by Russia’s state nuclear corporation, Rosatom, if the political climate there improves. Earlier reports indicated that India had pulled out of this project due to security issues.
This year, India has formed several agreements with countries like Germany, Brazil, and Canada to bolster technological access and partnerships. The government has identified over 20 minerals, including lithium, as vital for its energy transition and the growing demands of industry and infrastructure.
### (Source: Reuters)
