In a new pact involving battery mineral supply chain, India’s Commerce Minister Piyush Goyal signed an agreement with US Commerce Secretary Gina Raimondo to cooperate on strengthening supply chains in India and US for lithium, cobalt and other critical minerals.
The memorandum of understanding (MOU) that deals with minerals which are majorly used in electric vehicles and clean energy applications was signed during Minister Goyal’s visit to the United States and it aims to build resilience in the sector for each nation, a statement by the US Commerce Department said.
The Commerce Department said, “Priority areas of focus include identifying equipment, services, policies and best practices to facilitate the mutually beneficial commercial development of U.S. and Indian critical minerals exploration, extraction, processing and refining, recycling and recovery,” according to news agency Reuters.
Commerce Minister Piyush Goyal, who spoke about the MOU at Center for Strategic and International Studies in Washington, said that it is a multi-dimensional partnership between the two countries which is going to be inclusive of open supply chains for materials, technology development and investment flows to promote green energy.
Goyal further elaborated the need for Indian and the US to include other countries in the partnership, especially those who are already mineral rich like countries in Africa and South America.
The MOU between India and US would still fall short of a full critical minerals trade deal that would have allowed India to explore the $7,500 US electric vehicle tax credit.
Last year, Japan signed a deal with the US Trade Representative’s office and it has allowed the Japanese automakers to fully participate in the credit, Reuters reported.
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