Green Transition Through Collaborations: India-Chile
China at the moment accounts for around 70% of the world’s rare earth minerals supplies
PHOTO COURTESY : Hyderabad News
At the invitation of Prime Minister Narendra Modi, President of the Republic of Chile Mr Gabriel Boric Font visited India between 1st to 5th April, 2025, commemorating the completion of 76 years of diplomatic relations between the two countries, for the first time. His political journey, from student politics to the post of President, is an inspiration for young leaders across the world. The trade between India and Chile has increased in recent years, and many Indian companies have invested in Chile in various sectors.
India & Chile have a PTA (Preferential Trade Agreement) : A Framework Agreement to Promote Economic Cooperation between India and Chile was signed on January 20, 2005. The Framework Agreement envisaged a Preferential Trade Agreement (PTA) between the two countries as a first step.
India and Chile have signed four Memorandum of Understanding (MoUs) during the visit of the Chilean President Gabriel Boric Font to India-
- Letter of Intent to Strengthen Existing Antarctic Cooperation. It will facilitate joint scientific research in Antarctica.
- Bilateral Cultural Exchange Program for the period 2024 – 2028.
- Cooperation on Disaster Management.
- MoU between CODELCO, Chile and Hindustan Copper Limited for cooperation and exchange of information regarding exploration and mining. Chile is the largest producer of Copper in the world.
Securing Critical Minerals: Chile’s Significance in Current Scenario
- Chile is the world’s second largest lithium producer, after Australia, at an annual output of 39,000 million tonnes.
- The “lithium triangle” of Chile, Argentina and the salt flats of Bolivia holds 56% of all known lithium deposits, while 7.9% falls within China.
China at the moment accounts for around 70% of the world’s rare earth minerals supplies, while North Korea is reported to have $10 trillion worth of minerals and two thirds of the world’s rare earths.
China is actively investing in and securing access to critical minerals in Chile, particularly lithium, aiming to control the global supply chain for these resources crucial for clean energy technologies and other advanced industries.
The writer of this article is Dr. Seema Javed, an environmentalist & a communications professional in the field of climate and energy
