WASHINGTON (Diya TV) — India and the United States entered an agreement to cooperate on ensuring critical mineral supplies for electric vehicles and clean energy industries are available to both nations. In a Memorandum of Understanding, the two democracies are cooperating on access to the key minerals of lithium, cobalt, and nickel, which are used in the making of batteries as well as renewable energy technology.
The deal is part of both nations’ efforts to secure and diversify their access to these critical minerals, apart from their heavy dependence on sources elsewhere, such as China, the current superpower in the global supply chain. The U.S. Commerce Department said that the MOU would target mutual and beneficial practices in mineral exploration, extraction, refining, recycling, and recovery. It would strengthen the resilience of both supply chains by tapping into the technological capabilities and the policy frameworks of both countries.
Speaking at the Center for Strategic and International Studies in Washington, Indian Commerce Minister Piyush Goyal described the partnership as “multi-dimensional,” with an emphasis on open supply chains, green energy technology, and investment flows. It has planned, as part of such third-party engagement, to work with African and South American countries, who are very rich in these critical minerals, to expand the ambit of their collaboration.
The MOU is an important step, but it does not extend as far as a comprehensive critical minerals trade agreement that would allow India to take advantage of tax credits in the United States to produce EVs. The Biden administration had previously agreed to a similar arrangement with Japan, making its automakers eligible to participate in a program aimed at eventually cutting reliance on Chinese minerals. India hopes this agreement will serve as a platform for future partnerships that can offer similar sorts of competitive advantages.
This initiative is part of a generally evolving India-U.S. strategic relationship, which has been steadily moving toward greater cooperation in areas like defense, semiconductor manufacturing, and space exploration. Both countries recognize access to critical minerals will be at the forefront of fulfilling their ambitious clean energy ambitions and supporting the continued growth of their respective electric vehicle industries.
Timing-wise, the partnership emerges in a period where such minerals worldwide demand is being driven rapidly by a global shift towards renewable energy and the electrification of transport.
