The United States and India are set to work together on supply chains for critical minerals that are key to clean energy technologies, the U.S. Commerce Department said Thursday in a statement.
U.S. Commerce Secretary Gina Raimondo and India’s Minister of Commerce and Industry Piyush Goyal met in the U.S. capital, Washington, on Thursday, inking a deal to “expand and diversify” critical mineral supply lines.
The aim of the Memorandum of Understanding (MoU) is to increase resilience in the critical minerals sector, said the statement.
Both sides will also identify ways to facilitate “commercial development of US and Indian critical minerals exploration, extraction, processing and refining, recycling, and recovery,” the statement added.
Rare earth elements and minerals are becoming increasingly important due to their use in clean energy technologies, such as batteries for electric cars.
But the United States is set to face supply gaps when it comes to meeting projected demand for Electric Vehicles (EVs).
China is a major player in the critical minerals supply chain.
On Thursday, the United States and India also pledged to collaborate in the area of semiconductors.
Last year, the United States and Japan agreed on trade in critical minerals, seeking to reinforce supply chains in the face of China’s dominance.
The U.S.-Japan deal included commitments not to impose export duties on critical minerals shipped bilaterally.
