India and the US Sign Agreement to Collaborate on Critical Battery Mineral Supply Chains, Reports Reuters

By David Lawder

WASHINGTON – Indian Trade Minister Piyush Goyal and U.S. Commerce Secretary Gina Raimondo have signed an agreement to enhance cooperation on supply chains for lithium, cobalt, and other essential minerals used in electric vehicles and clean energy applications.

The Commerce Department announced that the memorandum of understanding (MOU), formalized during Goyal’s visit to Washington, is designed to strengthen resilience in the sector for both nations.

Key focus areas of the agreement include the identification of equipment, services, policies, and best practices to foster mutually beneficial commercial development in critical minerals sectors, covering exploration, extraction, processing, refining, recycling, and recovery.

During a discussion at the Center for Strategic and International Studies in Washington, Goyal characterized the MOU as a multi-faceted partnership. He highlighted the importance of establishing open supply chains for materials, promoting technological development, and facilitating investment flows to advance green energy initiatives.

Goyal also emphasized the need for the U.S. and India to engage with third countries, particularly those rich in minerals in Africa and South America.

Although the MOU is a positive step, it does not equate to a comprehensive critical minerals trade agreement that would enable India to benefit from the $7,500 tax credit for electric vehicles in the U.S. Last year, Japan secured a deal with the U.S. Trade Representative’s office that allows Japanese automakers greater access to this credit, aiming to reduce dependency on China for mineral resources and to prohibit bilateral export controls on various critical minerals.