India is in discussions with the Democratic Republic of Congo (DRC) to establish a supply agreement for critical minerals, particularly cobalt and copper, to support its growing industrial and energy transition needs, two sources familiar with the matter said.
The agreement, still in its early stages, aims to ensure a steady flow of these key resources from the resource rich African nation, which is the world’s leading cobalt producer.
Copper, another crucial mineral, is widely used in power generation, electronics, and construction.
A source, who requested anonymity due to the sensitivity of the discussions, said India’s mines ministry plans to seek approval from the foreign ministry to send a team of geologists to Congo.
“The memorandum of understanding is under process, and both countries are interested,” the source said.
India’s global push for critical minerals
As one of the world’s fastest growing economies, India has been intensifying efforts to secure critical minerals from countries like Congo, Mongolia, and Zambia.
The demand for these minerals is being driven by India’s push for renewable energy, electric vehicle production, and industrial expansion.
Officials from New Delhi are expected to attend a mining conference in Congo later this year to explore investment opportunities.
The visit follows a trip by a senior Indian official in July 2024 to assess potential supply sources.
Beyond Congo, India is also planning to send a geological team to Zambia within the next two months as part of its broader strategy to secure mineral assets abroad, the sources added.
Despite the potential benefits, geopolitical instability in Congo could complicate India’s plans.
The ongoing conflict between the Rwanda backed M23 rebel group and pro-Congo militias has raised concerns about security in the mineral-rich eastern regions.
“In African countries, the challenge would be geopolitics, and that is what delays projects,” said Ritabrata Ghosh, vice president and sector head for corporate ratings at ICRA Ltd.
Additionally, the processing of critical minerals is a technologically intensive process that requires time for commercialization after deposits are discovered, Ghosh explained.
Meanwhile, other global powers are also looking to strengthen ties with Congo.
On Monday, Reuters reported that the United States is open to potential partnerships with Congo on critical minerals, following a proposal from a Congolese senator for a minerals-for-security deal.
Last month, Congo temporarily halted cobalt exports for four months to manage an oversupply in production, a move that could impact global supply chains.
