India Pursues US Critical Minerals Partnership

India is actively pursuing a critical minerals partnership with the United States to establish a more robust supply chain for essential minerals like lithium and cobalt, which are vital for electric vehicles and clean energy technologies. Commerce and Industry Minister Piyush Goyal suggested upgrading the current memorandum of understanding (MoU) to a partnership agreement that could lay the groundwork for a future free trade agreement (FTA). This move aims to enable India to benefit from the US electric vehicle tax credit of up to $7,500 per vehicle, a benefit currently accessible to nations with which the US has an FTA. The US and India signed an MoU earlier this month to strengthen supply chains for these critical minerals, but it falls short of a full trade deal. This initiative is part of a broader strategy to diversify supply chains and reduce dependency on China, with India also opening investment offices in the US to facilitate new collaborations. Discussions during Goyal's recent US visit also covered co-development in sectors like digital technology, telecom, and defense, highlighting India's strategic push towards greater economic cooperation with the US.