India on important mineral deal with US

India is seeking a landmark mineral partnership agreement with the United States as it looks to negotiate a broader trade deal between the two countries, Commerce Minister Piyush Goyal said today.

“I have proposed to convert the Critical Mineral Resources MoU into a Critical Mineral Resources Partnership and be the starting point for becoming an FTA (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 agreement to cooperate in strengthening the two countries’ supply chains for lithium, cobalt and other critical minerals used in electric vehicles and clean energy.

The memorandum of understanding is far from a full-fledged mineral trade agreement that would allow India to receive a US$7,500 US tax credit on electric vehicles.

Trade deals focused on minerals are one way U.S. President Joe Biden’s administration hopes to open up trusted allies access to the $7,500 electric vehicle tax credit introduced in last year’s Climate Focused Inflation Relief Act.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)