India and the US are likely to sign a pact on key minerals, sources tell ET Auto

The initial pact on critical minerals would help build supply chains, exchange technical knowledge and promote cooperation between Indian and US companies in the sector, the first official said.

India and the United States are likely to sign an initial cooperation pact on key minerals this week, two government sources said, as the two countries try to strengthen trade ties despite diplomatic difficulties.

They are expected to sign a partnership and cooperation agreement in the area of ​​critical minerals during Indian Commerce Minister Piyush Goyal’s visit to Washington, sources said.

According to one source, Goyal is scheduled to travel to the United States this week to discuss ways to deepen overall bilateral trade relations, weeks before the White House prepares for a leadership transition after the presidential elections later this year.

An Indian government statement said Goyal is scheduled to meet U.S. Commerce Secretary Gina Raimondo and U.S. Trade Representative Katherine Tai this week.

Earlier this month, Indian Prime Minister Narendra Modi and President Joe Biden met one-on-one in Delaware as members of the Quad group, which also includes the leaders of Australia and Japan.

The initial pact on critical minerals would help build supply chains, exchange technical knowledge and promote cooperation between Indian and US companies in the sector, the first official said.

India’s federal commerce ministry did not immediately respond to a Reuters email seeking comment.

In June, Reuters reported that state-owned Coal India Ltd, together with an American company, was exploring lithium blocks in Argentina to secure supplies of battery material.

India has also proposed a separate trade agreement with the United States on trade in critical minerals. The agreement would prohibit both countries from imposing tariffs and would be similar to a pact with Japan that gives Japanese automakers greater access to the U.S. electric vehicle tax credit.

India is a member of the US-led Minerals Security Partnership, which aims to ensure adequate supplies of minerals necessary to achieve zero-emission goals. Last year, the Modi government identified 30 minerals, including lithium and nickel, as key to rolling out clean energy.

Bilateral trade between India and the United States was nearly $120 billion in fiscal year 2023-24, a record high. Under the Biden administration, the two nations have jointly resolved all their disputes at the World Trade Organization, in what India calls a “historic” development.