New Delhi, February 2026 —In a swift double-move that has reshaped global supply chain geopolitics, India has followed its entry into the US-led Pax Silica alliance with a landmark strategic pact with Brazil. Signed just 24 hours apart, these agreements signal New Delhi’s aggressive intent to break China’s monopoly on the “invisible building blocks” of the future: critical minerals and rare earth elements.

As the race for semiconductors, electric vehicles (EVs), and green energy intensifies, India is pivoting from a philosophy of complete self-reliance to one of “Strategic Resilience.”

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The Mineral Monopoly Challenge

The urgency behind these moves stems from a glaring vulnerability. While India holds the world’s third-largest rare earth reserves at 6.9 million tons, it has historically lacked the large-scale processing infrastructure required to turn ore into usable components.

Currently, China controls nearly 90% of global rare earth processing—a dominance it weaponized last year by halting the export of specialized magnets, triggering a supply chain panic in global tech hubs.

The Pax Silica Power Play

On February 20th, India formally joined Pax Silica, a high-stakes alliance launched in late 2025. Bringing together the US, Japan, and South Korea, the group aims to secure the AI and semiconductor supply chains. Within this framework:

• Australia provides the raw lithium.
• Japan and South Korea bring advanced manufacturing and AI innovation.
• India contributes technical talent, market scale, and growing semiconductor ambitions.

Why the Brazil Pact is a Game Changer

While Pax Silica is a Western-aligned bloc, the Brazil deal—signed on February 21st—is a bilateral masterstroke. Brazil holds 21 million tons of rare earth ores, second only to China.

Crucially, Brazil is not a member of Pax Silica, yet it possesses advanced experience in processing and recycling technologies. By partnering with Brasilia, New Delhi gains:

• Technology Transfers: Moving beyond raw mining into high-end refining and R&D.
• Diversified Sourcing: Reducing the risk of becoming a “geopolitical hostage” to a single-source supply chain.
• Investment Flows: Joint exploration and industrial collaboration to build full-spectrum resilience.

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Bottom Line

India’s strategy is no longer about isolation, but strategic integration. By anchoring itself to the US-led tech alliance while simultaneously securing raw material processing from Brazil, New Delhi is building a shield against future supply shocks. The message to the global market is clear: the green and digital economy of the future will not be built on a foundation of Chinese dependence.