India’s Minister of Trade announced on Saturday that the country has proposed a partnership agreement with the United States for critical minerals. He expressed hopes for discussions on a broader trade agreement between the two nations.
Earlier this month, India and the U.S. signed a preliminary agreement to collaborate on strengthening supply chains for lithium, cobalt, and other crucial minerals used in electric vehicles and clean energy applications. However, this memorandum fell short of a full critical minerals trade deal that would allow India to benefit from the $7,500 U.S. electric vehicle tax credit.
Mineral-focused trade deals are seen as a way for the Biden administration to provide access to trusted allies to the $7,500 per vehicle EV tax credit introduced in last year’s climate-focused Inflation Reduction Act.
