India, US ink MoU to expand & diversify critical minerals supply chains

India and the US have inked an agreement to cooperate on strengthening supply chains in the two countries for lithium, cobalt and other critical minerals. The memorandum of understanding (MoU) was signed between Commerce Minister Piyush Goyal and US Commerce Secretary Gina Raimondo.

On Thursday (October 4), Goyal and Raimondo held the 6th Commercial Dialogue Washington during which they reviewed the progress made in semiconductors supply chains, innovation handshake, energy-industry network and the Indo-Pacific Economic Framework for Prosperity.

The MoU that deals with minerals, majorly used in electric vehicles (EVs) and clean energy, was signed during Goyal’s US visit.

Delighted to announce the signing of the MoU to ‘Expand and Diversify Critical Minerals Supply Chains’ between India and the US. 🇮🇳🇺🇸

This development was the highlight of the 6th India-US Commercial Dialogue that I co-chaired with the US Secretary of Commerce @SecRaimondo,… pic.twitter.com/RWv8EGEhKQ

— Piyush Goyal (@PiyushGoyal) October 4, 2024

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According to a report by Reuters, the US Commerce Department said, “Priority areas of focus include identifying equipment, services, policies and best practices to facilitate the mutually beneficial commercial development of US and Indian critical minerals exploration, extraction, processing and refining, recycling and recovery."  

During the commercial dialogue, Goyal and Raimondo praised the two sides’ continuing efforts to facilitate resilient, secure and sustainable semiconductor supply chains.

With the signing of the MoU establishing a semiconductor supply chain and an innovation partnership under the framework of the US-India Commercial Dialogue, the US Semiconductor Industry Association and the India Electronics Semiconductor Association have completed their private sector “readiness assessment”, launched under the US-India initiative on critical and emerging technology to identify near-term industry opportunities and facilitate longer-term strategic development of complementary semiconductor ecosystems.

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Both the ministers have also pledged to continue working under the MoU to facilitate collaboration between the Indian and American companies towards mutually beneficial business opportunities, such as investments, joint ventures and technology partnerships, and to promote talent and workforce development to benefit both countries, the US Department of Commerce said in a statement.

Both the leaders also reviewed other joint efforts that have been made, including under the India-US Strategic Trade Dialogue and the Standards and Conformance Cooperation Program (SCCP). Looking ahead, they discussed several priorities for future collaboration, including critical minerals.

Goyal and Raimondo looked forward to the US Department of Commerce-led Global Diversity Export Initiative Trade Mission to India in March 2025, with a focus on expanding opportunities in the Indian market for US SMEs that are owned, operated or led by members of underserved communities.

They also praised plans to expand the US Department of Commerce’s presence in India to a total of about 70 Foreign Commercial Service staff across seven cities.

With inputs from agencies.