London, January 14th (Argus) - This week, Germany and India signed several agreements regarding key minerals and semiconductors, with the two countries aiming to enhance strategic cooperation.
During German Chancellor Friedrich Merz's first visit to Asia, the two countries signed 19 joint statements covering areas such as minerals, semiconductors, defense, green energy, and transportation.
Germany and India agreed to explore opportunities for key mineral exploration in both their own countries and third countries, increase value through processing and recycling, and acquire and develop key mineral assets.
India launched the National Critical Minerals Mission for the 2024-31 period, investing nearly 4 billion US dollars to expand exploration, recycling, storage, and processing capabilities. The goal of this plan is 1,200 exploration projects, 50 overseas mining assets, significant recycling incentives, and a national reserve system.
India's list of critical minerals includes cobalt, gallium, nickel, lithium, molybdenum, rare earths, and titanium. Although the country has many reserves of transitional minerals, its mining and processing capabilities are very limited. It still heavily relies on imports of lithium, cobalt, nickel, and rare earth elements.
Like most EU countries, Germany is striving to reduce its reliance on critical metals from China. Last year, due to China's export restrictions on rare earths, Germany's renewable energy and automotive industries faced severe disruptions.
Merz said: "Given the profound changes and instability in world geopolitics, deepening our strategic partnership is in line with our fundamental interests."
According to local media reports, after years of negotiations, the EU and India may reach a trade agreement by the end of this month. The EU is India's second-largest trading partner, with bilateral goods trade reaching 120 billion euros (140 billion US dollars) in 2024, while India is the ninth-largest trading partner of the EU. Over the past decade, trade between the two countries has increased by 90%.
