India and Russia are significantly strengthening their cooperation in the critical minerals and rare earths sector, with joint projects estimated to involve hundreds of millions of dollars. This partnership is deemed vital for advancing green energy initiatives and modern technologies in both countries.

The collaboration includes exploration of rare earth elements and critical minerals extraction, underground coal gasification, and the development of modern industrial infrastructure. These discussions occurred during the India-Russia Working Group on Modernization and Industrial Cooperation. This collaboration is under the framework of the India-Russia Intergovernmental Commission on Trade, Economic, Scientific, Technological and Cultural Cooperation, which facilitates bilateral cooperation across multiple industrial sectors.

Rare earth elements (REEs) are essential for various modern technologies, including electric vehicles, wind turbines, semiconductors, and defense systems. Amidst escalating trade dynamics and a need for strategic mineral security, this partnership offers crucial diversification opportunities for India's clean energy transition. Recent export restrictions by China, which controls a significant portion of the global supply of REEs, have exposed vulnerabilities in India's supply chain, disrupting automobile production and other sectors. India is seeking to reduce its reliance on China for these critical resources.

To counter these vulnerabilities, India and Russia are exploring joint ventures in rare earth and critical mineral extraction, focusing on underground coal gasification and modern industrial infrastructure. They are also advancing technology transfer and capacity building in mining equipment and exploration.

The 11th Session of the India-Russia Working Group on Modernisation and Industrial Cooperation in New Delhi covered a range of sectors, including aerospace science and technology. Plans include a modern wind tunnel, small aircraft piston engines, and joint R&D in carbon fiber, additive manufacturing, and 3D printing.

In August 2025, India's CSIR-IMMT signed Joint Declarations of Intent with Russia's Giredmet and Rosatom to advance critical mineral processing technologies and promote sustainable resource development, supporting India's goals under the Atmanirbhar Bharat and Viksit Bharat initiatives.

Furthermore, Indian companies are evaluating Russian processing technologies, with Moscow expressing interest in expanding these technologies commercially with Indian partners. India is also planning to stockpile rare earth materials and offer incentives to boost domestic magnet production.

This strategic alliance is particularly significant for India's energy transition goals, as critical minerals like copper, lithium, nickel, cobalt, and rare earths are essential raw materials for clean energy technologies. Their uses range from wind turbines and electricity networks to electric vehicles and battery manufacturing.

In addition to rare earth minerals, both countries are increasing cooperation in sectors like aluminium, fertilizers, and railway transport. They also discussed capacity building and technology transfer in mining equipment, exploration, and the management of industrial and domestic waste. On August 7, 2025, Oil India Limited (OIL) and IREL (India) Limited signed a Memorandum of Understanding (MoU) in Mumbai to collaborate on the development of critical minerals.