On Thursday, Indian Trade Minister Piyush Goyal and U.S. Commerce Secretary Gina Raimondo signed a memorandum of understanding (MOU) aimed at enhancing cooperation on supply chains for critical minerals such as lithium and cobalt, essential for electric vehicles and clean energy technologies. This agreement, reached during Goyal’s visit to Washington, seeks to build resilience in the mineral sector for both countries.
The U.S. Commerce Department stated that the MOU focuses on identifying necessary equipment, services, policies, and best practices to facilitate the exploration, extraction, processing, refining, recycling, and recovery of critical minerals. Goyal described the partnership as multi-dimensional, emphasizing the importance of open supply chains, technology development, and investment flows to promote green energy.
Additionally, Goyal highlighted the necessity of including third countries in these efforts, particularly mineral-rich nations in Africa and South America. However, the MOU does not establish a full critical minerals trade deal that would enable India to benefit from the U.S. electric vehicle tax credit, which is currently set at $7,500.
In contrast, Japan has already signed a deal with the U.S. that allows its automakers to participate more fully in this tax credit, aiming to diminish dependence on China for critical minerals.