Indian Trade Minister Piyush Goyal and US Commerce Secretary Gina Raimondo signed an agreement Thursday on cooperation in the two countries for strengthening supply chains, particularly of lithium, cobalt, and other critical minerals used in electric vehicles and clean energy applications.
In a statement, the Commerce Department said that the memorandum of understanding signed with Goyal’s visit to Washington built resilience in each country in the sector.
The department said the priority areas of focus include identifying equipment, services, policies, and best practices to facilitate the mutually beneficial commercial development of US and Indian exploration, extraction, processing, and refining, recycling, and recovery of critical minerals.
Goyal speaking at a Center for Strategic and International Studies in Washington after the signing described the MOU as multi-dimensional partnership that would include open supply chains for materials, technology development, and investment flows to promote green energy.
The US and India will further have to engage third countries in their engagement, mineral-rich countries in Africa and South America, he said.
The MOU, which Reuters first reported was in the works on Monday, falls 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 recently inked an agreement late last year with the US Trade Representative’s office, which permits Japanese carmakers to enter the program more fully that aims at reducing US-Japanese mineral dependence on China and prohibit lithium, nickel, cobalt, graphite, manganese, and other minerals whose export has bilateral controls.
