India, Russia in Advanced Talks on Critical Minerals Agreement
India and Russia in Advanced Talks to Sign Critical Minerals Deal
India and Russia are engaged in advanced discussions to sign a preliminary agreement on critical minerals, covering exploration, processing, and technological collaboration. The deal is expected to focus on lithium and rare earths, with the two governments also set to facilitate corporate investments.
According to sources familiar with the matter, the agreement could be signed within two months. The Ministry of Mines, which is leading discussions with Russia, is yet to respond to a Reuters email seeking comment. Similarly, Russia's Ministry of Industry and Trade and the office of First Deputy Prime Minister Denis Manturov did not respond to requests for comment.
India is keen to reduce its dependence on China, which dominates global supplies of several key minerals and has advanced mining and processing technology. The country aims to secure new overseas supplies to support its energy transition and infrastructure development. To this end, India has signed critical minerals agreements with Argentina, Australia, and Japan, and is in talks with Peru and Chile on broader bilateral agreements that also include critical minerals.
| Country | Critical Minerals Agreement Signed | Year |
|---|---|---|
| Argentina | Lithium exploration and mining project agreement (five blocks) | 2024 |
| Australia | Critical minerals agreement | |
| Japan | Critical minerals agreement | |
| Peru | Broad bilateral agreement (including critical minerals) | |
| Chile | Broad bilateral agreement (including critical minerals) |
India has had limited success in securing overseas critical minerals assets and has so far signed only a single lithium exploration and mining project agreement, covering five blocks in Argentina. However, the country could revisit Russian state nuclear corporation Rosatom's lithium exploration project in Mali if the political situation in the West African nation stabilizes. Earlier this year, Reuters reported that India withdrew from the Mali lithium project due to security concerns.
New Delhi has signed a series of agreements this year with countries including Germany, Brazil, and Canada to strengthen access to technology and partnerships. In 2023, the government identified more than 20 minerals, including lithium, as critical for its energy transition and rising industrial and infrastructure demand.
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