Indian Trade Minister Piyush Goyal and US Commerce Secretary Gina Raimondo signed an agreement on Thursday to cooperate on strengthening supply chains in the two countries for lithium, cobalt and other critical minerals used in electric vehicles and clean energy applications.
The Commerce Department said in a statement that the memorandum of understanding (MOU), signed during Goyal’s visit to Washington, was aimed at building resilience in the sector for each country.
“Priority areas of focus include identifying equipment, services, policies and best practices to facilitate the mutually beneficial commercial development of US and Indian critical minerals exploration, extraction, processing and refining, recycling and recovery,” Commerce said.
Goyal, speaking at a Center for Strategic and International Studies in Washington after the signing, described the MOU as a multi-dimensional partnership that would include open supply chains for materials, technology development and investment flows to promote green energy.
He said the US and India would also need to include third countries in their engagement, including mineral-rich countries in Africa and South America.
The MOU, which Reuters first reported was in the works on Monday, falls far short of a full critical minerals trade deal that would allow India to benefit from the $7,500 (roughly Rs. 6.29 lakh) US electric vehicle tax credit.
Japan last year signed a deal with the US Trade Representative’s office that allows Japanese automakers to more fully participate in the credit, aiming to reduce US-Japanese mineral dependence on China and prohibiting bilateral export controls on lithium, nickel, cobalt, graphite, manganese and other minerals.
© Thomson Reuters 2024
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