NEW DELHI: India’s Union Minister of Commerce and Industry Piyush Goyal announced the signing of a Memorandum of Understanding (MoU) between India and the United States on critical minerals.
The agreement, established during the sixth India-US commercial dialogue, aims to delineate pathways for cooperation between the Indian Ministry of Mines and its US counterpart.
The partnership is poised to ensure robust supply chains for critical minerals essential in the production of clean energy technologies—including lithium, cobalt, nickel, manganese, graphite, rare earth elements, and copper.
The MoU, which underscores the strategic importance of these minerals, is a cornerstone for future collaborations, including the launching of joint projects in third countries and attracting investments from global stakeholders.
Reducing reliance on China
Goyal emphasised that this agreement is pivotal for maintaining open supply chains and fostering greater engagement between the two nations regarding mineral resources.
India’s inclusion in the Minerals Security Partnership (MSP)—a coalition comprising the US, UK, Australia, Canada, and several European nations—highlights its commitment to securing supply chains for critical minerals, especially in the context of reducing reliance on China.
The initiation of the MSP in June 2022, followed by India’s membership in June 2023, reflects a unified effort to address vulnerabilities in global mineral supply chains and promote sustainable development.
Moreover, this MoU is indicative of the broader, multifaceted cooperation between India and the US, encompassing diverse sectors such as climate change, emerging technologies, trade, strategic alliances, education, health, and space.
Goyal’s meetings with US Trade Representative Katherine Tai and his co-chairing of the India-US CEO Forum highlight a renewed vigour in diplomatic and commercial interactions, which are now characterised by regular, outcome-oriented engagements.
Minister Goyal’s remarks about the increasing interest from US investors in Indian markets are particularly noteworthy. The optimism expressed by potential investors regarding future commitments reflects a mutual confidence in the economic partnership’s capacity to yield substantial benefits for both nations.
