India and US Forge Strategic Partnership on Critical Minerals:Commerce Minister Piyush Goyal

Union Minister of Commerce and Industry Piyush Goyal has announced that India and the United States have formalized a memorandum of understanding (MoU) focused on critical minerals. This agreement aims to enhance collaboration between India’s Ministry of Mines and its US counterpart, ensuring stable supply chains for materials essential to clean energy technologies and equipment.

According to Goyal, the MoU also lays the groundwork for the two nations to embark on joint projects in third countries and attract investments from other nations. He shared these updates during a news conference following his discussions with US officials.

The MoU was signed during the sixth India-US commercial dialogue, which took place in the US and was co-chaired by Goyal and US Commerce Secretary Gina Raimondo.

Goyal remarked, "We executed the MoU on critical minerals to maintain open supply chains and enhance engagement between India's Ministry of Mines and the US government."

The critical minerals covered in this agreement include lithium, cobalt, nickel, manganese, graphite, rare earth elements, and copper, all vital for the production of clean energy technologies.

India stands out as the only developing nation in the Minerals Security Partnership (MSP), a coalition that includes the US, UK, Australia, Canada, and several European countries. This partnership, which aims to secure the supply chain for these minerals and reduce dependency on China, was initiated in June 2022. India officially joined the MSP during Prime Minister Narendra Modi’s state visit in June 2023.

This MoU represents another facet of the growing bilateral cooperation between India and the US, which spans various sectors including climate, technology, trade, education, health, and space.

During this visit, Goyal also met with US Trade Representative Katherine Tai as part of the Trade Policy Forum and co-chaired the India-US CEO Forum alongside Raimondo.

Goyal noted, "These institutions are now engaging regularly. There was a time when interactions were infrequent; now, they are more outcome-oriented with a clear agenda and established schedules."

He also mentioned recent visits by prominent Indian officials, including Prime Minister Modi, Defence Minister Rajnath Singh, and External Affairs Minister S. Jaishankar. Goyal clarified an earlier mistake regarding the National Security Advisor, correcting himself to acknowledge US NSA Jake Sullivan's visit to India.

Reflecting on his interactions with US businesses, Goyal expressed enthusiasm, stating, "Each visit reveals truly phenomenal engagement with investors. I have met leading bankers and major investment funds, all keen on opportunities in India."

He added that these investors have reaffirmed their commitment to investing in India, with projected figures for the coming years being "truly astounding."