India, Canada sign pacts on critical minerals, uranium supply as ties warm – Firstpost

India and Canada on Monday signed a clutch of agreements spanning critical minerals, clean energy and cultural cooperation, marking a significant reset in bilateral ties as Prime Minister Narendra Modi hosted his Canadian counterpart Mark Carney in New Delhi.

The headline deal was a long-term uranium supply agreement between Saskatchewan-based Cameco Corporation and India’s Department of Atomic Energy, aimed at supporting the country’s ambitious nuclear power expansion.

$2.6 billion uranium pact over nine years

According to a company statement , Cameco will supply nearly 22 million pounds of uranium ore concentrate to India over a nine-year period beginning 2027 and running through 2035. At current market-linked pricing, the contract is estimated to be worth about $2.6 billion.

The agreement was formalised in the presence of Modi and Carney, alongside Saskatchewan Premier Scott Moe and Cameco CEO Tim Gitzel, underscoring what officials described as a renewed push to deepen commercial and strategic ties.

India currently operates 24 nuclear reactors and has outlined plans to scale up capacity to 100 GW by 2047 as part of its long-term energy security and decarbonisation strategy.

“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,” Modi said after delegation-level talks.

Cameco had earlier supplied uranium to India under a five-year contract that began in 2015 , but this is among the largest long-term arrangements since nuclear cooperation resumed following the 2008 civil nuclear agreement.

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Critical minerals, renewables in focus

Beyond nuclear fuel, Canadian Foreign Minister Anita Anand and External Affairs Minister S. Jaishankar exchanged three memorandums of understanding covering cooperation in critical minerals, renewable energy promotion and cultural exchanges.

The critical minerals pact is expected to bolster supply chain resilience at a time when global competition for lithium, cobalt, nickel and copper — essential for electric vehicles, batteries and electronics — has intensified.

Modi said Canada’s decision to join the International Solar Alliance and the Global Biofuel Alliance would further align the two countries’ clean energy goals. He also announced that an India-Canada Renewable Energy and Storage Summit will be held later this year.

Carney, for his part, said Ottawa and New Delhi would deepen engagement across defence, security, artificial intelligence and space technologies. “We’re expanding collaboration across wind, solar and hydrogen. Canada plans to double its grid by 2050, and India can be a major partner in that expansion,” he said.

Trade talks, defence dialogue revived

The two sides also agreed on the terms of reference for a trade deal aimed at improving market access and boosting bilateral investment flows. Officials said a new defence dialogue would enhance industrial collaboration, maritime domain awareness and military exchanges.

Canada, a member of the US-led NATO, is seeking to diversify economic partnerships in the Indo-Pacific, while India is keen to secure stable supplies of fuel and critical inputs for its clean energy transition.

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Diplomatic thaw after turbulence

Bilateral ties had sharply deteriorated in 2023 after then prime minister Justin Trudeau alleged a potential Indian link to the killing of Hardeep Singh Nijjar, triggering a diplomatic standoff.

Relations began to stabilise after Carney took office and both sides signalled a willingness to compartmentalise differences. In June last year, Modi travelled to Kananaskis for the G7 summit, where he held extensive talks with Carney focused on rebuilding trust and restoring economic momentum.

Monday’s agreements suggest that both governments are now prioritising strategic and commercial cooperation, particularly in energy security and critical supply chains, even as sensitive political issues remain in the background.