India Engages With Chile and Peru for Critical Mineral Supply

India is holding discussions with Chile and Peru to secure critical mineral supplies as part of ongoing free trade negotiations, as per news reports. Copper is a key focus in these talks. Both countries are major producers of copper, a metal that’s becoming increasingly important for energy and technology sectors.

Currently, India imports more than 90% of its copper concentrate. By 2047, this dependence is projected to rise to 97%. The government aims to negotiate a fixed quantity of copper supply from these South American nations through formal agreements under the trade deals.

Domestic Production

As per Reuters, Despite having significant reserves of rare earth elements, India’s production capacity remains underdeveloped. The country is working on a program to support the local manufacturing of rare earth magnets. These magnets are used in sectors like electric vehicles, wind energy, and electronics.

Efforts to Diversify Sources

The trade talks with Chile and Peru are part of a wider plan to reduce reliance on specific countries for critical inputs. China currently dominates global rare earth magnet production, accounting for nearly 90%. In April, China imposed export restrictions, citing trade tensions with the US.

Read more: India in Talks with Australia for Rare Earth Minerals Post China Curbs!

Looking Beyond One Market

India is engaging with multiple international partners to avoid single-source supply risks. It is also attempting to set up long-term strategies for materials that are essential to its industrial and energy goals. Discussions include not just copper, but other minerals considered vital for future technologies.

Conclusion

India’s efforts to negotiate with Chile and Peru, along with domestic initiatives, show a shift towards securing long-term access to key resources. As industrial demand grows, securing stable and diverse supply lines for critical minerals remains a central policy goal.

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