Blitz Bureau
WASHINGTON: The US Commerce Department and India’s Minister of Commerce and Industry PiyushGoyal announced on October 3 that the two countries have signed a new pact to cooperate in the critical minerals sector, material essential for battery manufacturing, as the Chinese Communist Party (CCP) tightens its grip on critical mineral exports.
Critical minerals—such as cobalt, antimony, and holmium—are needed in a wide range of tech from consumer goods to military weapons. China dominates the global market in both processing these minerals for use and in supplying them to international markets, according to Epoch Times. The United States obtains the majority of its critical mineral supply from China, and does not have its own domestic mining capacity.
Areas of focus
“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,” a Commerce Department statement reads.
The agreement with India builds on previous memorandums of understanding to partner on semiconductor technology and a framework regarding the Indo-Pacific supply chain. After signing the memorandum of understanding, Goyal described the agreement as a dynamic partnership, which may expand with the United States and India developing supply chains in other countries.
“We are looking at deeper partnership between the two countries, to have open supply chains and to ensure that we partner with each other, and support each other wherever we have strengths in critical minerals,” Goyal said.
Sewing machines
India used to be the prime manufacturer of sewing machines for Swiss companies, which dominated that market. Goyal said the CCP subsidised the Chinese manufacturing industry in order to flood the global market with low-cost sewing machines, and effectively put free-market competitors out of business.“We want to get all those sectors back into shape,” Goyal said.
The Indian Government has created short-term incentives meant to kickstart those industries, he said, but the modernisation of some of those sectors will require technology, which India hopes the United States will be a partner in.
“You will need a basic manufacturing hub and India offers that manufacturing hub in an open Government, an open economic environment where you can be assured that you will have protection, from the law, against any discrimination or wrongdoing against your companies,” Goyal said.
