India and Russia Negotiate Strategic Deal for Critical Minerals

India and Russia are in advanced discussions on a preliminary agreement related to critical minerals, according to sources aware of the matter cited by Reuters. The proposed arrangement is expected to include mineral exploration, processing, and technology-related cooperation between the 2 countries. 

A draft of the agreement has already been shared with Russian authorities. The agreement may be signed within the next 2 months. The discussions are being handled by India’s Ministry of Mines. 

Reuters reported that India’s Ministry of Mines, Russia’s Ministry of Industry and Trade and the office of First Deputy Prime Minister Denis Manturov did not respond to queries on the matter. 

Lithium and Rare Earths Likely to Be Included 

The discussions are expected to focus mainly on lithium and rare earth minerals. Both countries may also facilitate investments by companies involved in mining and mineral processing activities. 

Lithium is used in electric vehicle batteries and energy storage systems, while rare earth minerals are important for electronics, industrial equipment, and renewable energy technologies. 

In 2023, the Indian government identified more than 20 minerals, including lithium and cobalt, as critical for industrial growth, infrastructure development and the country’s energy transition plans. 

India Looks to Diversify Supply Sources 

India has been trying to reduce dependence on China for key mineral supplies and processing capacity. China currently holds a dominant position in the global supply chain for several critical minerals and refined materials. 

New Delhi has signed critical minerals agreements with Argentina, Australia and Japan. Discussions are also underway with Peru and Chile under broader bilateral cooperation arrangements. 

This year, India also signed agreements with Germany, Brazil and Canada to improve access to technology and partnerships connected to the critical minerals sector. 

Overseas Asset Acquisition Remains Limited 

Despite several international partnerships, India has secured limited overseas mineral assets so far. The country has signed only one overseas lithium exploration and mining agreement, covering 5 blocks in Argentina in 2024. 

Read More: India Launches $1.5 Billion Bharat Maritime Insurance Pool to Cut Reliance on Foreign Insurers & Boost Maritime Trade! 

Conclusion  

India’s discussions with Russia come as the country continues to explore long-term mineral supply arrangements and technology partnerships across multiple regions. 

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