Strengthening U.S.-India Energy Partnership for Sustainable Growth
Key Ideas
  • The U.S. and India aim to enhance their energy partnership through joint initiatives like the U.S.–India COMPACT, emphasizing energy security and critical technologies.
  • Both countries are looking to significantly increase bilateral trade volumes, with a focus on energy trade and technological collaborations.
  • Efforts are underway to reduce energy supply chain concentrations, deploy new energy technologies, and strengthen industrial bases through public-private partnerships.
  • Opportunities for collaboration include expanding into critical minerals exploration, hydrogen fuel cells, and green hydrogen, presenting avenues for private sector investments.
Energy security is a fundamental aspect of the U.S.-India partnership, crucial for economic growth and national security. The two countries are planning an Energy and Industrial Partnership centered on deploying energy technologies at scale, reducing supply chain concentrations, and enhancing industrial bases. This strategic approach involves research collaborations for innovative battery chemistries and small modular reactors, trade missions in automotive and battery sectors, public-private partnerships in battery manufacturing, and bilateral engagements for strategic sector funding. The anticipated surge in demand for batteries and critical minerals by 2035 is prompting joint efforts in resource mapping, capital deployment, and technology partnerships. Focus areas include automotive technologies, hydrogen fuel cells, advanced driving assistance, and drones. India's diversification of energy sources to include natural gas, green hydrogen, and nuclear power creates opportunities for collaboration, especially in cost-effective electrolyzers and nuclear components. Recent bilateral initiatives like the U.S.-India COMPACT underscore the commitment to energy security, technological advancements, and enhanced trade relations. Plans to increase bilateral trade to $500 billion by 2030 signal a substantial growth trajectory, with a focus on energy trade. Both countries have made strides in energy efficiency, renewable energy adoption, and reducing energy intensity, setting the stage for expanded collaborations. Efforts to reduce concentration in energy supply chains, boost commercialization of new technologies, and fortify industrial corridors are underway. The Inflation Reduction Act has spurred significant lithium-ion battery manufacturing and recycling capacities in the U.S. and India, attracting substantial investments. The proposed U.S.-India Strategic Energy and Industrial Partnership aims to leverage mutual strengths, foster technology deployment, and reinforce industrial infrastructure for sustainable growth and energy security.
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