India and US Poised to Sign Agreement on Critical Minerals, Sources Indicate – Reuters

By Shivangi Acharya and Neha Arora

NEW DELHI – India and the United States are anticipated to sign an initial agreement for cooperation on critical minerals this week, according to two government sources. This development aims to strengthen trade ties amid ongoing diplomatic challenges.

During Indian Trade Minister Piyush Goyal’s visit to Washington, the two nations are expected to formalize their partnership in the critical minerals sector. Goyal’s trip is part of broader discussions to enhance bilateral trade relations, which come just weeks before the U.S. prepares for a leadership shift following the upcoming presidential election later this year.

Goyal is set to meet with U.S. Commerce Secretary Gina Raimondo and U.S. Trade Representative Katherine Tai during his visit, as noted in a statement from the Indian government. While a representative from Tai’s office was not immediately available for comment, it is scheduled for Goyal to meet with her on Thursday in Washington.

Earlier this month, Indian Prime Minister Narendra Modi met with President Joe Biden both privately and as part of the Quad grouping, which includes Australia and Japan.

The forthcoming pact on critical minerals is expected to facilitate the development of supply chains, share technical expertise, and promote collaboration between Indian and American businesses in this field, as shared by the first official source.

India’s federal trade ministry and the U.S. embassy have not yet responded to inquiries regarding this matter. Negotiations for a Memorandum of Understanding (MoU) are currently underway, aiming to bolster bilateral cooperation in enhancing and diversifying essential mineral supply chains while leveraging the complementary strengths of both nations.

In June, it was reported that Coal India Ltd is exploring lithium deposits in Argentina in collaboration with a U.S. firm to secure battery material supplies. Additionally, India has proposed a separate trade agreement with the U.S. on critical minerals, which would prevent the imposition of tariffs by either country. This agreement would mirror a recent pact with Japan, allowing greater access for Japanese automakers to U.S. electric vehicle tax credits.

India is part of the U.S.-led Minerals Security Partnership, designed to ensure adequate supplies of essential minerals necessary for achieving zero-carbon goals. Last year, the Indian government identified 30 minerals, including lithium and nickel, as vital for the advancement of clean energy.

Bilateral trade between India and the U.S. for the fiscal year 2023-24 has reached nearly $120 billion, marking a record high. Under President Biden’s administration, the two nations successfully resolved all their disputes at the World Trade Organization, a significant achievement that India has described as "historic."