India, US sign MoU on critical minerals supply chain
Indian Trade Minister Piyush Goyal said the two countries would also need to include third countries in their engagement, including mineral-rich countries from Africa and South America.
India and the US have signed an agreement to cooperate on boosting supply chains in the two countries for critical minerals such as lithium and cobalt used in EVs and clean energy applications.
The US Commerce Department said in a statement that the MoU signed during Indian Trade Minister Piyush Goyal’s visit to Washington aimed to build 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 US and Indian critical minerals exploration, extraction, processing and refining, recycling and recovery,” the US Commerce Department said.
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, according to a Reuters report.
He said the two countries would also need to include third countries in their engagement, including mineral-rich countries from Africa and South America.
The MoU, however, falls well short of a comprehensive critical minerals trade deal that would allow India to benefit from the USD 7,500 US electric vehicle tax credit, the Reuters report says.
Last month, India’s battery-tech startup Lohum Cleantech announced it would set up a lithium-ion battery materials processing facility in the US in partnership with ReElement Technologies and American Metals for USD 30 million.
In July, Vedanta Nico, a subsidiary of India’s Vedanta group, signed an agreement with US-based AEsir Technologies for the supply of nickel, a key component for next-generation batteries.
