New Delhi – In a rapidly shifting global landscape defined by tariff threats from Donald Trump’s America, India is emerging as a premier partner for major economies seeking to “de-risk” their futures. At the center of this realignment is a critical minerals partnership between Canada and India that promises to reshape bilateral relations and address both nations’ strategic vulnerabilities.
India Energy Week Signals New Critical Minerals Partnership
Canadian Energy and Natural Resources Minister Tim Hodgson, speaking at India Energy Week in Goa, highlighted the potential of a critical minerals partnership with India. He described India’s expected growth in energy demand as a “great opportunity” for Canada, which holds vast supplies of oil, gas, and critical minerals essential for modern industries.
This emerging critical minerals partnership represents a diplomatic reset that thaws India-Canada relationships that have been frosty in recent times. Energy and critical minerals now stand as New Delhi’s primary interests in rebuilding ties with Ottawa.
Canada’s Strategic Pivot Through Critical Minerals Partnership
Hodgson noted that Canada produces six percent of the world’s oil today, but India receives less than one percent of its oil from Canada. Increasing this share through the critical minerals partnership would make both nations “stronger, more resilient and secure,” the minister emphasized.
The diplomatic shift toward a critical minerals partnership is driven by Canada’s need to look beyond the North American border as President Trump ramps up economic pressure. The critical minerals partnership with India offers Canada an alternative market of enormous scale and growth potential.
Prime Minister Carney’s Assessment
Canadian Prime Minister Mark Carney, headed to India in March, has been caustic about Trump’s policies while expressing enthusiasm for the critical minerals partnership with India. “The world has changed. Washington has changed. There’s almost nothing normal in the United States now. That’s the truth,” Carney told the Canadian Parliament.
The upcoming visit will focus on finalizing aspects of the critical minerals partnership, with deals expected to cover uranium, gas, and other strategic sectors vital to both nations’ futures.
Uranium Supply Within Critical Minerals Partnership
A key component of the critical minerals partnership involves Canada potentially providing uranium to help India reach its ambitious goal of 100 gigawatts of nuclear capacity by 2047. This target year has been set by Prime Minister Narendra Modi for achieving Viksit Bharat or developed India.
The uranium dimension of the critical minerals partnership addresses India’s long-term energy security while providing Canada with a stable, growing market for its nuclear fuel resources.
Rewiring Economies Through Critical Minerals Partnership
Minister Hodgson emphasized that the critical minerals partnership reflects changed global realities. “We used to be in a world where we sought to integrate with our closest trading partners, and we now find that that integration is used for coercion” or tariffs are used to gain leverage, he explained.
Canada now needs to “rewire its economy” and build relationships beyond neighbors, making the critical minerals partnership with India strategically essential for Ottawa’s economic future.
India’s Investment Plans in Critical Minerals Partnership
India’s Oil Minister Hardeep Singh Puri announced that India is keen on investing in extraction of critical minerals in Canada, pledging to mount a delegation soon to discuss joint collaboration. This proactive approach to the critical minerals partnership demonstrates India’s serious commitment to securing supply chains.
State-owned Oil India Limited is part of a group examining the critical minerals partnership opportunities, particularly focusing on lithium, cobalt, and rare earth elements essential for manufacturing electric vehicle batteries, solar panels, wind turbines, and defense equipment.
Upcoming Delegation for Critical Minerals Partnership
Oil India Limited Chairman Ranjit Rath confirmed that a delegation will soon visit Canada to advance the minerals partnership. This visit represents concrete action to transform the bilateral relationship from diplomatic rhetoric to practical economic cooperation.
The minerals partnership delegation will explore specific investment opportunities and joint ventures in Canada’s resource sector.
Joint Statement on Critical Minerals Partnership
A joint statement after the Puri-Hodgson meeting formalized the vision for the minerals partnership: “Canada has stated its goal of becoming an energy superpower in clean and conventional energy, with export diversification as a priority while India, as the epicenter of the global energy landscape, offers a natural and symbiotic partnership grounded in scale, stability, and long-term opportunity.”
Democratic Partnership Advantage
The minerals partnership gains additional strategic value from both countries’ democratic governance. With China controlling the majority of current critical minerals supplies, Canada and other nations view India’s democracy as a significant advantage when choosing partners beyond Beijing.
“India, as a major consumer and Canada as a safe, secure and reliable supplier, can act in partnership,” the ministers’ joint statement emphasized regarding the minerals partnership.
Similar Trump Tariff Pressures
Both countries in this minerals partnership face similar predicaments regarding Trump’s trade policies. India currently faces a 50 percent tariff from the US, including a 25 percent penalty over Russian oil purchases, while Canada faces 35 percent tariffs.
Foreign Minister’s Clarity on Critical Minerals Partnership
Canadian Foreign Minister Anita Anand, who has Indian family roots, has been blunt about the necessity of the minerals partnership and broader pivot. Responding to Trump’s threats, she declared: “Canada will never be the 51st state.”
Anand stated Canada will double its non-US export trade within a decade, directly connecting this strategy to the minerals partnership: “That is why we went to China, that’s why we will be going to India and that is why we won’t put all our eggs in one basket.”
