India Brazil Rare Earth Deal: Brazilian President Luiz Inacio Lula da Silva is going to visit India from 18th to 22nd February. Many meanings are being extracted from this political journey. While there is an atmosphere of economic uncertainty and global turmoil all over the world, this visit of the Brazilian President can open new doors for both the countries.
Brazilian Ambassador Kenneth H. da Nobrega has also given hints regarding this visit. He has said that this visit can prove to be a big step in the field of pharmaceuticals, rare earths and mutual cooperation between both the countries. After his statement, the entire world including China will be keeping an eye on the talks between India and Brazil regarding rare earth…
Aim to take India-Brazil trade to new heights
In the changing global environment, there is pressure on supply chains and traditional trade routes are weakening. At such a time, India is trying to give a new direction to economic relations with Brazil. India wants to further strengthen its presence in Latin America.
At the same time, Brazil is trying to reduce its dependence on old partners like America and China. If a deal is made between the two countries then the goals of both will be fulfilled. In this context, both the countries have set an ambitious target of increasing bilateral trade from the current $12.19 billion to $20 billion in the next five years.
Rare earth deal will hurt China
The whole world is highly dependent on China for rare earths. China has a large share of the global rare earth treasure. This is the reason why China continues to make its own moves in the matter of rare earths. At the same time, Brazil has a large source of rare earth minerals. Brazil is in a strong position in terms of reserves of many important minerals, including lithium, which is essential for the clean energy and electronics sectors.
India wants to strengthen the supply chain of these minerals keeping in mind its increasing energy needs and battery manufacturing. Besides, this deal will also reduce dependence on China and will open doors for other options for India. In such a situation, the possible agreement in this area is not just a business deal for India. Rather, it will be a step to strengthen future technological and energy security.
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