US Commerce Secretary Gina Raimondo and Indian Trade Minister Piyush Goyal have agreed to collaborate to enhance supply chains for lithium, cobalt and other critical minerals used in EVs and clean energy technologies.
According to a statement from the Commerce Department, the memorandum of understanding (MOU) signed during Goyal's visit to Washington aims to establish each nation's resilience in the sector.
The two officials confirmed that ensuring supply chain resilience remains a mutual policy focus in the two countries' commercial relationship.
The MOU will broaden and vary critical minerals supply chains, utilise the respective strengths of both nations and enhance resilience in the critical minerals industry, as per the statement.
“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, speaking at a Centre for Strategic and International Studies event in Washington after the agreement was signed, characterised the MOU as a comprehensive collaboration encompassing transparent supply chains for resources, technology advancement and capital movement to support sustainable energy.
Delighted to announce the signing of the MoU to ‘Expand and Diversify Critical Minerals Supply Chains’ between India and the US. 🇮🇳🇺🇸
— Piyush Goyal (@PiyushGoyal) October 4, 2024
This development was the highlight of the 6th India-US Commercial Dialogue that I co-chaired with the US Secretary of Commerce @SecRaimondo,… pic.twitter.com/RWv8EGEhKQ
He emphasised the need for the US and India to involve other nations in their interactions, including countries in Africa and South America with abundant mineral resources.
The MOU, initially reported by Reuters on Monday, does not constitute a complete critical minerals trade agreement that would enable India to take advantage of the $7,500 US EV tax credit.
The Biden administration has recently allocated significant resources to enhance domestic supply chains for critical minerals, covering the entire process from mining to manufacturing to recycling.
According to the US Government, these investments enhance US energy and national security, support US manufacturing, generate well-compensated and unionised jobs in mining, construction and manufacturing, and decrease dependence on unreliable supply chains.
