India and US likely to sign pact on critical minerals

India and the United States are likely to sign an initial pact for cooperation on critical minerals this week, two Indian government sources said, as the two countries try to bolster trade ties despite diplomatic hiccups.

They are expected to sign an agreement to partner and cooperate in the area of critical minerals during Indian trade minister Piyush Goyal’s visit to Washington, the sources said.

Goyal is scheduled to be in the US this week to discuss ways to deepen overall bilateral trade ties, according to one of the sources, weeks before the White House’s preparation for a leadership change following the presidential election later this year.

Goyal is expected to meet US Commerce Secretary Gina Raimondo and US Trade Representative Katherine Tai this week, according to a statement from the Indian government.

Earlier this month, Indian Prime Minister Narendra Modi and President Joe Biden met in Delaware one-on-one as well as part of the Quad grouping which also includes the leaders of Australia and Japan.

The initial pact on critical minerals would help build supply chains, exchange technical know-how, and promote collaboration between Indian and American businesses in the sector, the first official said.

India’s federal trade ministry and the US embassy did not immediately respond to a Reuters email for comment.

“The two sides are negotiating a MoU (memorandum of understanding) which intends to enhance bilateral collaboration to increase and diversify essential critical mineral supply chains and leverage their complementary strengths,” the Indian trade ministry said on Sept. 29.

Reuters reported in June that state-run Coal India Ltd is exploring lithium blocks in Argentina along with a US company to secure supplies of the battery material.