Indian Trade Minister Piyush Goyal and U.S. Commerce Secretary Gina Raimondo signed a memorandum of understanding (MOU) to enhance collaboration on supply chains for lithium, cobalt and other essential minerals used in electric vehicles and clean energy technologies. The agreement, finalized during Goyal’s visit to Washington, aims to bolster resilience in the critical minerals sector for both nations.
The U.S. Commerce Department stated that the MOU focuses on identifying necessary equipment, services, policies,and best practices to support the commercial development of critical minerals exploration, extraction, processing, refining, recycling, and recovery in both countries.
During a speech at the Center for Strategic and International Studies in Washington, Goyal characterized the MOU as a comprehensive partnership that would facilitate open supply chains, technology development, and investment flows to promote green energy initiatives. He emphasized the importance of involving third-party nations, particularly mineral-rich countries in Africa and South America, in these collaborative efforts.
While the MOU represents a significant step toward cooperation, it falls short of establishing a full critical minerals trade agreement, which could allow India to take advantage of the $7,500 U.S. electric vehicle tax credit. In contrast, Japan secured a deal last year that enables its automakers to benefit from the tax credit, aimed at reducing U.S.-Japanese reliance on China for critical minerals and prohibiting bilateral export controls on various essential materials, including lithium, nickel, cobalt, graphite, and manganese.
