India Seeks Critical Mineral Partnership with the U.S.

22nd October 2024 India Seeks Critical Mineral Partnership with the U.S.

Critical Mineral Partnership Agreement

India’s Trade Minister Piyush Goyal, announced that the country is pushing for a Critical Mineral Partnership Agreement with the United States as a potential gateway to broader trade discussions, including a Free Trade Agreement (FTA). He stated: “I had suggested that critical mineral MoU (memorandum of understanding) to be converted to a critical mineral partnership and become a starting point to become an FTA (Free Trade Agreement).”

Strong supply chains

Earlier this month, India and the U.S. signed a preliminary agreement to strengthen supply chains for lithium, cobalt, and other critical minerals used in electric vehicles and clean energy. However, this MoU is just the first step and falls short of a full trade deal that would allow India to benefit from the $7,500 U.S. electric vehicle tax credit.

The U.S. is leveraging mineral-focused trade deals as part of its strategy under the Inflation Reduction Act to grant trusted allies access to clean energy incentives.

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