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India seeks critical minerals in US deal
March 24, 2025
|Mint New Delhi
Mineral pact in BTA aimed to secure EV tax credits in US
Indian trade officials are pushing their American counterparts to stitch their recent critical minerals deal into an upcoming trade agreement, two people aware of the discussions said, a tweak that may unlock US tax benefits for electric vehicles and batteries using these scarce resources.
The October agreement aimed to strengthen supply-chain resilience for critical minerals such as lithium and cobalt. While India ranks third in the world for rare earth reserves, the US holds the seventh position.
In January, India unveiled its own ₹34,300 crore critical minerals mission to achieve self-reliance in critical minerals.
Discussions on modifying the minerals pact have picked up as work on a Bilateral Trade Agreement (BTA) gains momentum, one of the two people cited above said.
"New Delhi is pushing to upgrade the existing Memorandum of Understanding (MoU) into a full-fledged partnership agreement, aiming to integrate it into broader trade negotiations," this person said on the condition of anonymity.
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