India and Russia Near Critical Minerals Pact to Counter China Dominance

India and Russia are in advanced talks to sign a preliminary agreement on critical minerals covering exploration, processing, and technological collaboration, with a focus on lithium and rare earth metals. India has shared a draft proposal with Russian authorities, and the pact could be signed within two months. India's Ministry of Mines is leading the discussions, while Russia's Ministry of Industry and Trade and the office of First Deputy Prime Minister Denis Manturov are involved on the Russian side. Foreign Minister Sergey Lavrov and External Affairs Minister S. Jaishankar are also set to hold talks on the cooperation.

The partnership serves India's broader strategy to diversify critical mineral supply chains and reduce dependence on China, which dominates global rare earth production. India designated over 20 minerals as critical in 2023 and prepared a 25 billion rupee incentive program for rare earth magnet manufacturing. However, India has had limited success securing overseas critical minerals assets, with only one lithium exploration agreement covering five blocks in Argentina signed in 2024. India has previously signed critical minerals agreements with Argentina, Australia, and Japan, and is in talks with Peru and Chile.

For Russia, the agreement offers a path to develop its underdeveloped rare earths sector. Despite holding an estimated 28.5 million metric tons of rare earth reserves, Russia produces only about 50 metric tons annually and relies on imports for over 98 percent of its 3,000 metric tons of annual consumption. President Vladimir Putin has ordered the government to prepare a roadmap for developing the country's rare earth metals industry. India could also revisit Rosatom's lithium exploration project in Mali if the political situation there stabilizes, after withdrawing earlier in 2026 due to security concerns.