India Ramps Up Critical Mineral Partnerships With Latin America To Curb China Dependence And Accelerate Green Transition

In a strategic move to bolster its renewable energy and green mobility sectors, India is intensifying efforts to secure stable supplies of critical minerals from Peru, Chile, and Argentina.

This push comes against the backdrop of recent supply chain disruptions caused by China's restrictions on exports of rare earth magnets and tunnel boring machines (TBMs), which have strained Indian industries.

High-level talks are underway with Peru, focusing on lithium, copper, and rare earth imports, as reported in recent developments.

Meanwhile, free trade agreement (FTA) negotiations with Chile are set to commence soon, aiming to ensure a reliable flow of these essential resources.

Argentina also presents promising opportunities in critical minerals, energy, and agricultural products.

The urgency stems from China's export curbs, which have doubled the number of Indian companies awaiting licenses for rare earths, hitting automobile manufacturers hard.

Indian automakers, including Ashok Leyland, are facing production challenges ahead of the festive season, as magnet supplies remain disrupted, per a Times of India report.

This has prompted India to consider building a strategic rare earth reserve for defence use, with Defence Secretary Rajesh Kumar Singh stating it would help 'tide over immediate requirements' during surges in demand, as noted in a Bloomberg report.

To offset the crisis, India has already inked bilateral agreements with other mineral-rich countries, including ongoing discussions under FTA frameworks with Chile and Peru since July 2025, according to a trade ministry source cited in Reuters.

The government is also tweaking mining laws to allow state funding for overseas assets and expediting green nods for domestic mining.

In a significant development, China assured India in August 2025 that it would address concerns over rare earths, fertilisers, and TBMs, following talks with Foreign Minister Wang Yi.

However, exports of magnets have yet to resume fully, pushing India towards self-reliance.

The National Critical Mineral Mission, backed by a $4 billion push, underscores this shift, aiming to reduce dependence on China amid a $100 billion trade gap.

These initiatives are crucial for India's clean energy goals, with the International Energy Agency warning of potential global disruptions if supply chains remain concentrated.

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