Inside the Canada-India Critical Minerals Partnership

Canada and India have agreed on a wide-ranging strategic energy partnership, anchored by a C$2.6bn (US$1.6bn) uranium supply agreement and new cooperation across critical minerals, renewables and hydrogen.

The deal was secured during Prime Minister Mark Carney's visit to Mumbai and New Delhi, the first bilateral visit to India by a Canadian Prime Minister since 2018. It marks a reset in relations after several years of diplomatic strain.

India's energy demand is rising faster than any other major economy. With a population of 1.4 billion and rapid industrialisation, the country is scaling up nuclear, renewable and alternative fuels capacity to meet surging consumption while reducing emissions.

At the centre of the agreement is a long-term uranium supply contract between Saskatoon-based Cameco and India's Department of Atomic Energy. Under the C$2.6bn (US$1.9bn) deal, Cameco will supply nearly 22 million pounds of uranium to India between 2027 and 2035, supporting fuel requirements for the country's expanding nuclear fleet.

Uranium mining supply secures nuclear ambitions

Cameco's CEO Tim Gitzel says: "Cameco is proud to be a strategic partner with India to help meet its civil nuclear fuel needs and support its trade relationship with Canada. India is embarking on an ambitious nuclear expansion to power its development plans and meet the future energy security needs of its people.

"This demand underscores an emerging trend of sovereign buyers locking up large volumes from multiple suppliers, in a window where demand continues to grow and available supplies continue to become more uncertain and constrained."

Indian Prime Minister Narendra Modi highlighted the scale of the agreement.

"In civil nuclear energy, we have reached a landmark deal for long-term uranium supply. We will also work together on small modular reactors and advanced reactors," he said.

The reference to small modular reactors signals broader ambition to collaborate beyond fuel supply, potentially spanning next-generation nuclear design and deployment.

Critical minerals value chains established

Energy cooperation extends to critical minerals, a sector central to both countries' industrial strategies. India's Ministry of Mines and Canada's Department of Natural Resources signed an MoU on critical minerals value chains, covering exploration, mining, processing, investment promotion and technical exchange.

Additional agreements between the Saskatchewan Research Council and Indian partners will support collaboration in critical minerals exploration, downstream processing and nonferrous metals technology development. These arrangements are designed to diversify supply chains and secure materials essential for renewable energy systems, batteries and advanced manufacturing.

The critical minerals framework could position Canada as a key supplier of materials required for India's expanding clean energy infrastructure. Both countries recognize the strategic importance of securing reliable access to minerals including lithium, cobalt, nickel and rare earth elements.

Metallurgical coal and industrial minerals

The visit also produced commercial agreements linked to mining and industrial development. Elk Valley Resources of British Columbia signed MoUs with multiple Indian steel producers to discuss new sales of 1.2 million tonnes of metallurgical coal worth approximately C$285m (US$208.6m).

The metallurgical coal agreements support India's steel manufacturing sector, which requires high-quality coking coal for blast furnace operations. Canada's metallurgical coal deposits in British Columbia are among the highest quality globally.

These agreements contribute to more than C$5.5bn (US$4.02bn) in commercial partnerships announced during the visit, spanning energy, mining, manufacturing and technology.

Both governments signed an MoU on renewable energy cooperation promoting technical collaboration in solar, wind, biomass and energy storage. Hydrogen research collaboration was also established between Simon Fraser University and the Hydrogen Association of India.

Both sides confirmed that negotiations toward a Comprehensive Economic Partnership Agreement will conclude by the end of 2026.

"Our target is to reach $50bn in bilateral trade," Prime Minister Modi said.

Mining, energy and resources are expected to play a central role in achieving that target. The rapprochement follows years of strained diplomatic ties, with both governments moving to rebuild engagement.

Geopolitical shifts, including exposure to US trade tariffs and volatility in global energy markets, have encouraged both countries to diversify partnerships. India is seeking to reduce reliance on Russian energy imports while Canada, as a major producer of uranium, LNG and critical minerals, offers supply security aligned with India's growth trajectory.

With uranium deliveries scheduled to begin in 2027, the partnership now moves from political agreement to implementation across uranium mining supply, critical minerals development and metallurgical coal exports.