India, Chile expedite CEPA negotiations and critical minerals cooperation

Chile's Foreign Minister Francisco Pérez Mackenna visited India in May 2026, imparting fresh momentum to bilateral ties and accelerating negotiations toward ...

What Happened

Chile's Foreign Minister Francisco Pérez Mackenna visited India in May 2026, imparting fresh momentum to bilateral ties and accelerating negotiations toward a Comprehensive Economic Partnership Agreement (CEPA) between the two countries.
The visit included meetings with senior Indian ministers and a business delegation, with discussions centering on CEPA finalisation, critical minerals cooperation, investment, digital collaboration, and innovation.
India-Chile CEPA negotiations are reported to be in advanced stages, with India's Commerce Minister signalling publicly that talks would "conclude soon" and that the pact would "open up the critical minerals sector" for Indian businesses.
Chile is the world's largest copper producer and holds the world's second-largest lithium reserves (estimated 9.3 million metric tonnes), making it a strategically indispensable partner for India's electric vehicle (EV) and clean energy manufacturing ambitions.
Chile's state-owned miner Codelco signed an agreement with India's Adani Group in late 2025 to explore copper projects across three sites, signalling private sector momentum ahead of the government-level CEPA.
Coal India Ltd has also approved an intermediate holding company in Chile to pursue critical minerals exploration — indicating public sector engagement alongside private.
The two sides also explored digital services, MSME cooperation, and investment promotion as pillars of the broader CEPA.
An earlier Preferential Trade Agreement (PTA) between India and Chile, implemented in 2006, forms the base layer on which the CEPA is being built.

Static Topic Bridges

Comprehensive Economic Partnership Agreement (CEPA)

A CEPA (Comprehensive Economic Partnership Agreement) is India's preferred nomenclature for a broad-based trade and investment treaty that goes beyond tariff reductions (as in an FTA) to cover services trade, investment rules, intellectual property, digital trade, and regulatory cooperation.

India has active CEPAs with: Japan (2011), South Korea (2010), UAE (2022), Mauritius (2021), and Australia (Interim ECTA 2022, comprehensive CECA under negotiation).
An FTA with the EU (India-EU Broad-based Trade and Investment Agreement — BTIA) has been under prolonged negotiation since 2007 and was revived in 2022.
CEPAs typically include a negative list approach to services and a rules of origin framework to prevent tariff arbitrage.

Connection to this news: An India-Chile CEPA would be India's first comprehensive trade pact with a Latin American nation, opening a new geographic frontier for India's trade diplomacy while serving the strategic goal of securing critical mineral supply chains.

Critical Minerals and India's Strategy

Critical minerals are raw materials essential to the manufacture of clean energy technologies, EVs, defence electronics, and semiconductors. They are "critical" because supply is concentrated in a few countries and disruptions pose national economic and security risks.

India's Critical Minerals List (released 2023, updated 2024) identifies 30 minerals as critical, including lithium, cobalt, nickel, graphite, rare earth elements, copper, and titanium.
The Khanij Bidesh India Ltd (KABIL) — a joint venture of NALCO, HCL, and MECL — was established to acquire overseas critical mineral assets.
India's National Critical Mineral Mission (launched 2025) provides an integrated framework for domestic exploration, overseas acquisition, recycling, and substitution.
Chile has the world's largest copper reserves (~20% of global copper) and significant lithium reserves in the Atacama Salt Flat — the world's largest and most productive lithium deposit.
Chile is ranked the world's second-largest lithium producer (after Australia in production, but ahead in reserves).

Connection to this news: The India-Chile CEPA is not primarily a conventional trade deal but a strategic minerals corridor — designed to give India assured, preferential access to the lithium and copper needed for EVs, batteries, and renewable energy infrastructure at scale.

Preferential Trade Agreement (PTA) vs CEPA

A Preferential Trade Agreement (PTA) offers tariff concessions on a limited basket of goods (not comprehensive coverage), while a CEPA covers substantially all trade in goods and services, investment, and regulatory convergence — as required under WTO Article XXIV.

India-Chile PTA (2006) covered a limited set of goods with tariff preferences — it was India's first trade agreement in Latin America.
The shift to CEPA negotiations signals both sides' intent to move from preferential to comprehensive trade integration.
India's bilateral trade with Chile was USD 3.75 billion in FY2024-25: exports USD 1.15 billion (down 2.46%), imports USD 2.60 billion (up 72%).

Connection to this news: The 72% surge in imports from Chile (primarily copper and lithium) reflects the structural shift in trade patterns driven by India's clean energy demand — a CEPA would provide the framework to make this a stable, preferential supply arrangement.

Atmanirbhar Bharat and Critical Minerals

India's Atmanirbhar Bharat (Self-Reliant India) mission, launched in 2020, extends beyond manufacturing to strategic resource security. In the context of the energy transition, "self-reliance" requires either domestic critical mineral availability or secured overseas supplies through government-to-government and private sector agreements.

India's EV Policy (2024) targets 30% EV penetration by 2030 — requiring massive lithium-ion battery capacity.
India has limited domestic lithium reserves (primarily in Jammu & Kashmir and Rajasthan, recently discovered) — estimated at ~5.9 million tonnes, but commercially untested.
The lithium market is projected to shift from surplus to structural deficit by 2026, increasing urgency for supply agreements.

Connection to this news: The India-Chile CEPA, combined with Adani-Codelco and Coal India's Chile engagement, represents India's multi-track critical minerals strategy: bilateral treaties + PSU asset acquisition + private sector partnerships.

Key Facts & Data

Chile's bilateral trade with India: USD 3.75 billion (FY2024-25); India's imports from Chile surged 72% in FY25.
Chile is the world's largest copper producer (~20% of global supply) and holds the 2nd-largest lithium reserves (~9.3 million metric tonnes).
The Atacama Salt Flat in Chile is the world's most productive lithium deposit.
Chile also possesses significant reserves of cobalt, rhenium, and molybdenum — all on India's Critical Minerals List.
India-Chile PTA was implemented in 2006 — India's first trade agreement in Latin America.
KABIL (Khanij Bidesh India Ltd) is India's designated overseas critical minerals acquisition vehicle.
Chile's Codelco is the world's largest copper-producing company (state-owned).
India's Critical Minerals List (2023-24) includes 30 minerals; lithium and copper are priority items.
India's EV target: 30% EV share by 2030, requiring large-scale battery manufacturing scale-up.