NEW DELHI: India’s trade minister announced on Saturday that the country is seeking a critical mineral partnership agreement with the United States, aiming to pave the way for a broader trade pact between the two nations.
“I had suggested that the critical mineral MoU (memorandum of understanding) be converted to a critical mineral partnership and become a starting point for establishing an FTA (Free Trade Agreement),” Piyush Goyal told reporters at a press briefing in New Delhi.
Earlier this month, India and the US signed an initial pact to cooperate on strengthening supply chains in both countries for lithium, cobalt, and other critical minerals used in electric vehicles and clean energy applications.
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The MoU fell short of a full critical minerals trade deal that would allow India to benefit from the $7,500 US electric vehicle tax credit. Minerals-focused trade deals are one way that US President Joe Biden’s administration hopes to open up access for trusted allies to a $7,500 per vehicle EV tax credit introduced in last year’s climate-focused Inflation Reduction Act.
