MC EXCLUSIVE India steps up Chile, Latin America, Africa FTA push for critical minerals as Peru talks slow down
With the Peru track slowing, New Delhi is stepping up engagement with Chile, with the Commerce Secretary and India’s chief negotiator expected to travel to the country next month to advance discussions.
Adrija Chatterjee
July 22, 2026 / 16:18 IST
The broader objective is to create a network of FTAs through which critical mineral supplies can be diversified and India does not have to depend on a single economy, the official added.
The broader objective is to create a network of FTAs through which critical mineral supplies can be diversified and India does not have to depend on a single economy
India is stepping up trade engagement with reAfrica to secure supplies of critical minerals such as copper, lithium and cobalt, as negotiations for a free trade agreement (FTA) with Peru lose momentum amid political uncertainty, people aware of the discussions told Moneycontrol
With the Peru track slowing, New Delhi is stepping up engagement with Chile, with the Commerce Secretary and India’s chief negotiator expected to travel to the country next month to advance discussions, one person aware of the matter said.
India is looking to diversify its critical mineral supplies by engaging with a range of rethe person said
“India is trying to diversify our critical minerals from various countries Chile, Argentina also, some African nations. They are rich in copper. Lithium also in certain LAC and African nations. Also, Australia,” the government official said.
The broader objective is to build a network of FTAs that diversifies India’s access to critical minerals and reduces dependence on any single country, the official said.
“The government is domestically making its own critical mineral policy while the Commerce Ministry is using FTAs to do so,” the official added.
India’s push for overseas mineral partnerships comes as the country remains heavily dependent on imports for several critical minerals.
Official data shows that demand for lithium used in electric vehicle batteries is currently met entirely through imports, prompting New Delhi to pursue a twin strategy of strengthening domestic capabilities under the National Critical Mineral Mission while securing overseas supplies through trade agreements and strategic partnerships.
The government had also flagged concerns in March over China’s export controls and licensing requirements covering high-performance lithium-ion batteries, cathode materials, artificial graphite anodes and related technologies, warning that the measures could create supply chain vulnerabilities for Indian EV manufacturers reliant on Chinese midstream processing.
Chile has emerged as a key partner in India’s critical minerals strategy, with negotiations underway to upgrade the existing Preferential Trade Agreement into a Comprehensive Economic Partnership Agreement (CEPA).
The two countries signed the Terms of Reference for CEPA negotiations in May 2025, and the first round of talks was held later that month in New Delhi. The proposed agreement covers goods, services, investment and critical minerals, among other areas.
Chile is strategically important as it is the world’s largest producer of copper and one of the leading suppliers of lithium—both critical for electric vehicles, renewable energy infrastructure and advanced manufacturing.
Alongside bilateral negotiations, India is also looking to deepen trade ties with the MERCOSUR bloc, comprising Argentina, Brazil, Paraguay and Uruguay.
India already has a Preferential Trade Agreement with MERCOSUR and is exploring ways to expand economic engagement with the grouping.
Argentina is another strategic partner because of its vast lithium reserves. Along with Chile and Bolilargest lithium-producing regions
Australia also remains a key partner in India’s critical minerals strategy, given its significant reserves of lithium, nickel and other minerals essential for battery manufacturing and energy transition technologies.
Peru has been an important target for India because of its large copper reserves, making it strategically significant as global demand for the metal rises.
However, negotiations for the proposed India-Peru FTA have slowed amid political developments in the country.
“Peru FTA is slowed down because of the political situation there. They are going through elections and before that some internal turmoil was going through in their trade ministry related to implementation issues with their FTAs,” the official said.
India has attempted to revive negotiations, but progress has remained limited, the person added.
“Chile is progressing fast. That is also critical minerals,” the person said.
India is also looking to accelerate discussions with the Southern African Customs Union (SACU), comprising South Africa, Namibia, Botswana, Lesotho and Eswatini, as part of its broader strategy to diversify critical mineral supplies, the official said.
South Africa is a major producer of platinum group metals, manganese and chromium, while Namibia has significant uranium reserves and emerging potential in lithium and rare earth minerals. Botswana also has substantial copper-nickel re
Adrija Chatterjee is an Assistant Editor at Moneycontrol. She has been tracking and reporting on finance and trade ministries for over eight years.
first published: Jul 22, 2026 04:18 pm
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