India is planning to invest in Canada's critical minerals sector, according to Oil Minister Hardeep Singh Puri. This announcement followed a meeting between Puri and Canadian Minister of Energy and Natural Resources, Tim Hodgson, during India Energy Week. The two countries are aiming to deepen bilateral energy trade, encompassing Canadian Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG), and crude oil supplies to India, along with refined petroleum products from India to Canada.

A delegation from India will soon visit Canada to explore opportunities for collaboration in the critical minerals sector. This move is aimed at securing essential minerals like lithium, cobalt, and rare earth elements, which are vital for manufacturing electric vehicle (EV) batteries, solar panels, wind turbines, and defense equipment. Oil India Ltd (OIL), a state-owned company under Puri's ministry, is part of a consortium that is interested in securing these minerals.

With China currently controlling the majority of the supply of these critical minerals, the concentration of supply chains poses significant geopolitical risks. Diversifying the sources of these minerals is crucial for India's energy security and economic stability.

The collaboration between Canada and India extends beyond critical minerals to include broader energy cooperation. Both countries have pledged to expand trade in oil and gas, with Canada committing to ship more crude oil, LNG, and LPG to India, while India will increase its exports of refined petroleum products to Canada. This renewed push signifies a major effort to diversify Canada's export markets and reflects a shift toward pragmatic, economy-first diplomacy with major Asian partners.

The ministers are using the India Energy Week summit to relaunch a "ministerial energy dialogue," which aims to facilitate greater reciprocal investment in each other's energy sectors and explore collaboration in areas such as hydrogen, biofuels, battery storage, electricity systems, and the use of artificial intelligence in the energy industry.

India accounts for only a small fraction of Canada's critical minerals exports, which highlights the potential for growth in this area. Canada started exporting LNG to Asia in June 2025, and its LPG terminals have relatively short shipping routes to India. The expansion of the Trans Mountain pipeline has also opened a direct path for crude shipments to India.

The discussions between the Prime Ministers of both countries at the 2025 G7 Summit and the recent ministerial energy dialogue indicate a growing strategic partnership focused on strengthening and stabilizing global energy supply chains. This cooperation could potentially ease critical mineral supply constraints for the automotive industry, particularly for electric vehicles.