India-Canada Deal On Critical Minerals Signals Move Toward Trusted Supply Networks
India and Canada's critical minerals pact strengthens supply chain security, supports clean energy ambitions and reduces strategic dependence in rare earth and battery materials.
Published : March 2, 2026 at 8:21 PM IST
New Delhi: As competition intensifies worldwide for lithium, cobalt, and rare earth elements essential to next-generation technologies, India and Canada have moved to deepen cooperation in securing these strategic resources.
The memorandum of understanding (MoU) on critical minerals cooperation, signed after delegation-level talks between Prime Minister Narendra Modi and his Canadian counterpart Mark Carney, underscores New Delhi’s push to diversify supply chains and reduce overdependence on concentrated global sources, particularly in sectors central to its energy transition and industrial ambitions.
At a time when global supply chains are under strain and access to strategic resources is increasingly weaponised, the pact signals a calculated effort by both countries to secure trusted mineral partnerships critical to clean energy, advanced manufacturing and national security.
According to the Ministry of External Affairs (MEA), the MoU signed on Monday is a mutually beneficial collaboration between India and Canada to develop secure and resilient critical mineral supply and value chains. It will entail promotion of investment and identification of projects in both countries, and facilitating exchange of technical knowledge and best practices in critical and strategic mineral exploration, mining, beneficiation and processing for efficient extraction.
"Today's MoU on critical minerals will strengthen resilient supply chains," PM Modi said during a joint address to the media with Carney following the talks. According to a joint statement issued by the two sides following Monday's talks, both leaders "underscored their commitment to deepening long-term, reciprocal investment partnerships across the energy and natural resource sectors, recognising the scale of ongoing projects and emerging opportunities in both markets".
"They further welcomed the signing of a memorandum of understanding on critical minerals cooperation, reflecting their shared commitment to building resilient, secure, and diversified critical minerals supply chains," the statement reads.
"In this context, they welcomed India's endorsement of the G7 Critical Minerals Action Plan, which supports diversified and responsible production and supply of critical minerals and encourages investment and innovation in value chains essential for clean energy, advanced manufacturing, and technology. The leaders also discussed Indian presence at the Prospectors and Developer's Association of Canada (PDAC) meeting in March 2026, and commitment for a ministerial-led Indian energy and industry delegation to Canada in summer 2026 to support robust commercial outcomes for Canadian and Indian companies."
According to the statement, both sides agreed to deepen cooperation on critical minerals and energy transition pathways, including exploring collaboration on helping to secure India’s mineral stockpiling initiative, and supporting robust commercial outcomes for Canadian and Indian companies, while also sharing expertise on emissions reductions, and transition technologies.
Canada ranks among the world’s most resource-rich nations for critical minerals. It has significant deposits of lithium, nickel, cobalt, graphite, and rare earth elements (REEs) and has been actively investing billions of dollars to scale mining and processing capacities through federal funding and the Critical Minerals Strategy.
For India, partnering with Canada offers diversified and reliable supply routes for key inputs. The MoU will provide access to upstream resources (mining) and potential downstream capacity development. This will also open the way for alternate supply chains that reduce dependence on China’s dominant position in global rare earth and battery mineral markets.
In return, India’s large market demand – driven by rapid expansion in electric vehicles (EVs), renewable power, and high-tech manufacturing — offers Canada a reliable long-term customer base for its mined products.
Addressing a special media briefing here following the talks, P Kumaran, Secretary (East) in the Ministry of External Affairs, said that the signing of the MoU on critical minerals will help build resilient supply chains and accelerate clean energy deployment.
"You have seen in the last few months that critical minerals supply chain linkages have been weaponised and used as sources of leverage," Kumaran said. "So, there is a broad consensus among what the Canadian Prime Minister has referred to as a mini-powers to try and collaborate on various areas where we can work together and ensure that our sources are diversified and our interests are protected. So, critical minerals clearly fall in that area. He had spoken about price floors for critical minerals making sure that there is a ready supply available so that our ability to source critical minerals cannot be held hostage by any single power seeking to terminate supplies. The critical minerals and rare earths framework will be helpful for diversification and risk management."
India’s ambitious targets for renewable energy capacity and electric mobility hinge on a steady supply of critical minerals like lithium, nickel, cobalt, and rare earths that are necessary for batteries, magnets, and other components. Cooperation with Canada helps secure these inputs and could reduce import vulnerabilities.
Both India and Canada face global competition for critical minerals. Aligning supply chains through bilateral pacts strengthens resilience against geopolitical shocks and market volatility – an increasingly important factor in global trade and technology competition.
The MoU on critical minerals cooperation opens avenues for joint exploration and mining projects, upstream to downstream processing ventures, and shared research on sustainable extraction and refining technologies.
This can help India build deeper industrial ecosystems around critical minerals — ultimately benefiting manufacturing, clean tech, and defence sectors.
With China dominating many critical mineral supply chains – especially in rare earths – India’s outreach to Canada aligns with a broader strategy among like-minded economies to build alternative, transparent supply networks that are less susceptible to geopolitical control or export restrictions.
Last month too, during the visit of Brazilian President Luiz Inacio Lula da Silva, India had signed a similar MoU on critical minerals and rare earths cooperation in a calculated effort to reduce dependence on concentrated supply sources and build a more resilient rare earth ecosystem.
Robinder Sachdev, strategic affairs expert, electronics engineer, and president of the New Delhi-based Imagindia think tank, highlighted the fact that this group of critical minerals and rare earth elements are absolutely essential for machines, defence equipment, automobiles, wind turbines, aerospace, smartphones, laptops, and graphics processing units (GPUs).
"So, as technology advances, the demand for critical minerals and rare earths is skyrocketing," Sachdev told ETV Bharat. "Countries are hunting for supplies and suppliers."
He said that India does not have many of these minerals." We have thorium but we have not fast-tracked harvesting this," Sachdev said. "We should make it a national mission."
He said that India is trying to get into the supply chain but this will take time. "China’s monopoly in this sector is very much a fact today,” he said.
According to Sachdev, the MoUs like those with Canada and Brazil should lead to measurable results.
To sum up, the India–Canada MoU on cooperation in critical minerals is strategically significant because it secures essential inputs for India’s clean energy and advanced technology goals, enhances supply chain security and diversification, opens opportunities for mutual investment, technology collaboration, and industrial development, and supports a broader economic and geopolitical partnership, including energy, trade, and technology cooperation.
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