India's trade minister announced on Saturday that the country has proposed a critical mineral partnership agreement with the United States, expressing hope for discussions on a broader trade pact between the two nations.
"I had suggested that the critical mineral MoU (memorandum of understanding) be transformed into a critical mineral partnership, serving as a starting point for an FTA (Free Trade Agreement)," Piyush Goyal told reporters at a press briefing in New Delhi.
Earlier this month, India and the U.S. inked an initial agreement to collaborate on bolstering supply chains for lithium, cobalt, and other critical minerals essential for electric vehicles and clean energy applications. However, this MoU did not meet the expectations of a comprehensive critical minerals trade deal, which would have enabled India to take advantage of the $7,500 U.S. electric vehicle tax credit.
Minerals-centric trade agreements are a key strategy of the Biden administration to provide trusted allies access to the $7,500 per vehicle EV tax credit introduced in the Inflation Reduction Act, which focuses on climate issues.
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