Indian Trade Minister Piyush Goyal and US Commerce Secretary Gina Raimondo inked a deal to collaborate on enhancing supply chains in both nations for essential minerals like lithium, cobalt, used in electric vehicles, and clean energy technologies.
The memorandum of understanding (MOU), signed during Goyal's trip to Washington, aimed to strengthen the sector in both countries, according to a statement from the Commerce Department.
"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.
During the event at the Center for Strategic and International Studies in Washington, Goyal explained that the MOU is a comprehensive partnership involving transparent supply chains for materials, technology advancement, and financial investments to support renewable energy. He mentioned that the United States and India must involve other countries, such as mineral-rich nations in Africa and South America, in their interaction.
The MOU, expected to be finalized by sources on Monday, is not as comprehensive as a complete critical minerals trade agreement that would enable India to take advantage of the $7,500 US electric vehicle tax credit.
Last year, Japan agreed with the US Trade Representative's office to allow Japanese automakers to have greater involvement in the credit system, with the goal of lessening US-Japanese reliance on China for minerals such as lithium, nickel, cobalt, graphite, manganese, and others while also prohibiting bilateral export controls.
