By David Lawder
WASHINGTON (Reuters) – Indian Commerce Minister Piyush Goyal and U.S. Commerce Secretary Gina Raimondo signed an agreement on Thursday to work together to strengthen supply chains in the two countries for lithium, cobalt and other crucial 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, aimed at building resilience in the sector for each country.
“Priority areas of focus include identifying equipment, services, policies and best practices to facilitate the mutually beneficial commercial development of U.S. and Indian exploration, extraction, processing and refining, recycling and recovery of critical minerals,” Commerce said.
Speaking after the signing at a Center for Strategic and International Studies in Washington, Goyal described the MOU as a multi-dimensional partnership that would include open supply chains for materials, technology development and investment flows to promote green energy.
He said the US and India should also involve third countries in their engagement, including mineral-rich countries in Africa and South America.
The MOU, which Reuters first reported was in the works on Monday, falls far short of a fully critical minerals trade deal that would allow India to benefit from the US’s $7,500 electric vehicle tax credit.
Japan signed an agreement last year with the Office of the U.S. Trade Representative allowing Japanese automakers to participate more fully in the credit, with the aim of reducing U.S.-Japan mineral dependence on China and eliminating bilateral export controls on lithium, nickel, cobalt, graphite, manganese and minerals. other minerals.
