Indian Commerce Minister Piyush Goyal and US Commerce Secretary Gina Raimondo signed an agreement on Thursday to cooperate in strengthening the two countries’ supply chains for lithium, cobalt and other critical minerals used in electric vehicles and clean energy applications.
The commerce ministry 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 mutually beneficial commercial development of key mineral exploration in the US and India, extraction, processing and refining, recycling and recovery,” Commerce said.
Speaking at the Center for Strategic and International Studies in Washington after the signing, Goyal described the MOU as a multidimensional partnership that would include open supply chains for materials, technological development and investment flows to promote green energy.
He said the US and India should also include third countries in their engagement, including mineral-rich countries in Africa and South America.
The memorandum of understanding, which Reuters first reported was in the works on Monday, is far from a full critical mineral trade deal that would allow India to use a $7,500 (roughly Rs 6.29 lakh) tax credit in the US for electric vehicles.
Last year, Japan signed an agreement with the US Trade Representative’s office that allows Japanese automakers to participate more fully in the loan, with the goal of reducing US-Japan mineral dependence on China and banning bilateral export controls on lithium, nickel, cobalt, graphite, manganese and other minerals.
© Thomson Reuters 2024
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