Govt pushes to upgrade critical minerals MoU into partnership

Critical mineral pact in bilateral trade deal aimed to secure EV tax credits in the US

- Dhirendra Kumar

NEW DELHI: 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.