Indian, US ministers sign deal to cooperate on critical battery mineral supply chains

Indian Trade Minister Piyush Goyal and USCommerce Secretary Gina Raimondo signed an agreement on Thursday to cooperate on strengthening supply chains in the two countries for lithium, cobalt and other criticalminerals used in electric vehicles and clean energy applications.

The Commerce Department said in a statement that the memorandum of understanding (MOU), signed during Goyal's visit to Washington, was aimed at building resilience in the sector for each country.

"Priority areas of focus include identifying equipment, services, policies and best practices to facilitate the mutually beneficial commercial development of USand Indian criticalminerals exploration, extraction, processing and refining, recycling and recovery," Commerce said.

Goyal, speaking at a Center for Strategic and International Studies in Washington after the signing, described the MOU as a multi-dimensional partnership that would include open supply chains for materials, technology development and investment flows to promote green energy.

He said the USand India would also need to include third countries in their engagement, includingmineral-rich countries in Africa and South America.

The MOU, which Reuters first reported was in the works on Monday, falls far short of a full criticalminerals trade deal that would allow India to benefit from the $7,500 USelectric vehicle tax credit.

Japan last year signed a deal with the USTrade Representative's office that allows Japanese automakers to more fully participate in the credit, aiming to reduce US-Japanesemineraldependence on China and prohibiting bilateral export controls on lithium, nickel, cobalt, graphite, manganese and otherminerals.

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