India's Commerce Minister Piyush Goyal takes part at the panel discussion "Trade: Now what?" during the World Economic Forum 2022 (WEF) in the Alpine resort of Davos, Switzerland May 25, 2022. REUTERS/Arnd Wiegmann/File Photo
NEW DELHI: India’s trade minister has said the country has sought a critical mineral partnership agreement with the United States as he hopes for talks on a broader trade pact between the two nations.
“I had suggested that critical mineral memorandum of understanding (MoU) to be converted to a critical mineral partnership and become a starting point to become a free trade agreement,” Piyush Goyal told reporters at a press briefing in New Delhi.
Earlier this month, India and the United States signed an initial pact to cooperate on strengthening supply chains in the two countries.
This was for lithium, cobalt and other critical minerals used in electric vehicles and clean energy applications.
The MoU fell far short of a full critical minerals trade deal.
The deal would allow India to benefit from the US$7,500 US electric vehicle tax credit.
Minerals-focused trade deals are one way that US President Joe Biden’s administration hopes to open up access for trusted allies to a US$7,500 per vehicle electric vehicle tax credit introduced in last year’s climate-focused Inflation Reduction Act. — Reuters
