India and Canada have signed a new energy cooperation framework focused on uranium and critical minerals, marking a significant reset in bilateral relations after recent diplomatic tensions. Both countries have also reiterated their ambition to expand bilateral trade to 50 billion USD by 2030, This deals Includes corporation in defense. Technology and renewable energy.
The two sides have agreed on the terms of reference for a Comprehensive Economic Partnership Agreement (CEPA), laying the groundwork for a broader trade and investment regime. This move signals a deliberate effort to normalize ties and unlock new strategic and commercial opportunities.
Cameco–India Uranium Supply Agreement
The Government of India has concluded a major uranium supply agreement with Canada’s Cameco Corp to support India’s nuclear expansion and clean energy ambitions.
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Cameco will supply approximately 22 million pounds (around 10,000 tonnes) of uranium between 2027 and 2035.
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The contract is valued at about 2.6 billion Canadian dollars (roughly 1.9 billion USD).
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The fuel will underpin India’s plans to secure clean, reliable baseload power and reduce its dependence on coal.
This is India’s second major uranium contract in less than a month. Two weeks earlier, India finalized a similar long-term supply agreement with Kazakhstan’s state-owned Kazatomprom, although the exact scale of that deal has not yet been disclosed. Both Cameco and Kazatomprom have supplied uranium to India in the past, but the new, larger, multi-year contracts are critical to India’s objective of increasing nuclear power capacity by more than tenfold by 2047.
Global Uranium Reserves: India’s Supply Context
Uranium reserves are typically categorized by the cost of extraction. Australia remains the undisputed leader, holding nearly 28% to 31% of the world’s known uranium
|
Rank |
Country |
Estimated Quantity (Metric Tonnes) |
Share of Global Total |
Key Mining Region/Mine |
| 1 |
Australia |
1,680,000 – 1,950,000 |
~30% |
Olympic Dam (South Australia) |
| 2 |
Kazakhstan |
813,000 – 874,000 |
~15% |
Inkai, Budenovskoye |
| 3 |
Canada |
582,000 – 865,000 |
~10% |
Athabasca Basin (McArthur River) |
| 4 |
Russia |
480,000 – 500,000+ |
~8% |
Trans-Ural, Siberia |
| 5 |
Namibia |
470,000 – 500,000+ |
~8% |
Husab, Rössing |
| 6 |
South Africa |
320,000 – 350,000 |
~5% |
Witwatersrand Basin |
| 7 |
Brazil |
275,000 – 310,000 |
~5% |
Caetité |
| 8 |
Niger |
270,000 – 300,000+ |
~4% |
Arlit, Imouraren |
| 9 |
China |
225,000 – 270,000 |
~3.5% |
Xinjiang, Guangdong |
| 10 |
Uzbekistan |
130,000 – 200,000 |
~2% |
Navoi Region |
long-term contracts with Kazakhstan and Canada ensure diversified access to high-quality uranium from two of the top three reserve-holding nations, reducing over-reliance on any single geopolitical bloc.
Strategic Importance for India and Canada
The deal carries both energy and geopolitical significance.
For India, it:
- Supports the clean energy transition by securing low-carbon, firm baseload power as electricity demand rises.
- Reduces exposure to coal and helps meet climate and net-zero commitments.
- Diversifies nuclear fuel suppliers beyond traditional partners such as Russia and the US, improving energy security.
For Canada, it:
- Provides long-term revenue certainty for Cameco and the broader uranium value chain.
- Supports investment and employment in resource-rich regions such as northern Saskatchewan.
- Reinforces Canada’s position as a reliable supplier in the global energy transition.
On the diplomatic front, the agreement helps reset India–Canada relations, which had been strained since 2023, and creates momentum for concluding CEPA, targeting at least 50 billion USD in trade by 2030.
Strategic Outlook
The India–Canada uranium deal is more than a commodity contract; it represents a structural realignment positioning both countries as “natural partners” in the global clean energy transition.
- The delivery period for the roughly 22 million pounds of uranium oxide aligns with India’s planned “fleet mode” deployment of ten 700 MW pressurized heavy-water reactors (PHWRs). As these reactors come online, they are expected to:
- Lift India’s industrial productivity by providing stable power to manufacturing and services.
- Help stabilize the grid as a growing share of intermittent renewable energy (solar, wind) is integrated.
Long-Term Strategic Forecast
As India advances towards a nuclear capacity target of around 100 GW by 2047, the bilateral relationship is likely to deepen and broaden beyond fuel supply into technology, investment, and manufacturing.
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Joint ventures in mining
Indian public sector enterprises and private firms are likely to explore equity participation in Canadian uranium and critical mineral assets. Such stakes would further secure India’s supply chain and offer Canada stable, long-term partners for capital-intensive projects. -
SMR value chain collaboration
Both countries could cooperate on the development and deployment of small modular reactors (SMRs). A plausible model is the co-design and co-certification of SMR technologies, with India leveraging its manufacturing scale to become a hub for producing SMR components and modules for export to other emerging markets, while Canada contributes high-end engineering, safety, and regulatory expertise. -
Comprehensive Economic Partnership Agreement (CEPA)
The planned conclusion of CEPA—potentially by the end of 2026—would institutionalize the trade and investment relationship. A finalized CEPA could realistically help lift bilateral trade flows toward 60–70 billion USD by 2030, depending on tariff reductions, services access, and investment protections, while anchoring long-term collaboration in energy, technology, and critical minerals.*Note: The above data has been collected via media sources. Please check reliable sources before taking any action
*Note: The above data has been collected via media sources. Please check reliable sources before taking any action
