India, US likely to sign pact on critical minerals, say sources

admin admin | 10-01 00:30

The initial pact on critical minerals would help build supply chains, exchange technical know-how, and promote collaboration between Indian and American businesses in the sector, the first official said.
India and the United States are likely to sign an initial pact for cooperation on critical minerals this week, two government sources said, as the two countries try to bolster trade ties despite diplomatic hiccups.

They are expected to sign an agreement to partner and cooperate in the area of critical minerals during Indian trade minister Piyush Goyal's visit to Washington, the sources said.

Goyal is scheduled to be in the U.S. this week to discuss ways to deepen overall bilateral trade ties, according to one of the sources, weeks before the White House's preparation for a leadership change following the presidential election later this year.

Goyal is expected to meet U.S. Commerce Secretary Gina Raimondo and U.S. Trade Representative Katherine Tai this week, according to a statement from the Indian government.

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

The initial pact on critical minerals would help build supply chains, exchange technical know-how, and promote collaboration between Indian and American businesses in the sector, the first official said.

India's federal trade ministry did not immediately respond to a Reuters email for comment.

Reuters reported in June that state-run Coal India Ltd is exploring lithium blocks in Argentina along with a U.S. company to secure supplies of the battery material.

India has also proposed a separate critical minerals trade deal with the United States. This deal would prohibit the imposition of tariffs by both countries and will be similar to a pact with Japan that grants Japanese automakers wider access to U.S. electric vehicles tax credit.

India is a member of the U.S.-led Minerals Security Partnership, which aims to ensure adequate supplies of minerals needed to meet zero-carbon goals. Last year, Modi's government identified 30 minerals, including lithium and nickel, as critical for driving the adoption of clean energy.

India-U.S. bilateral trade in the 2023-24 fiscal year stood at nearly USD 120 billion, a record high. Under the Biden administration, the two nations mutually resolved all their disputes at the World Trade Organisation, a development India called "historic".

Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.


ALSO READ

Ola Electric responds to ARAI notice, says prices of S1 X 2 kWh scooter unchanged

Ola Electric provided an invoice dated October 6, showing a INR 5,000 discount given to customers, a...

Hyundai Motor IPO’s off to a slow start

Around 35% of the total shares in the offering are reserved for retail investors, while QIBs and NII...

Under fire, Ola Electric taps EY India to get back on track

Close to a dozen executives from EY came on-board at Ola Electric a few weeks ago on deputation for ...

Tata Motors secures 5-star BNCAP safety ratings for Nexon, Curvv, and EV models in latest crash tests

Tata Curvv.EV BNCAP testTata Motors did it again! Tata Motors has once again secured 5 star rating i...

India needs to step up manufacturing to meet Viksit Bharat goal: Volvo Grp India MD

Volvo Group India Managing Director and President, Kamal Bali. The manufacturing sector is a weak li...

Dollar pullback to help Indian rupee, weak risk appetite to weigh

Investors are now nearly certain that the U.S. Federal Reserve will deliver a 25-basis-point rate cu...