The current pact between India and the US facilitates cooperation in sourcing, processing, and developing a reliable supply of critical minerals, ensuring resource security for both nations. Upgrading the agreement would likely encompass more comprehensive measures to bolster the supply chain, provide greater access to critical resources, and strengthen technological exchanges, particularly in sectors like EV batteries, semiconductors, and renewable energy infrastructure.

This move is also seen as part of India’s broader strategy to support its decarbonization goals, as critical minerals are essential for renewable energy technologies. With the global demand for these materials rising rapidly, India is keen to secure a robust supply network, especially as it aims to position itself as a hub for battery manufacturing and electric vehicle production. Enhanced cooperation with the US would further strengthen India’s capability to meet the demands of its growing green energy sector and contribute to both countries' climate change mitigation efforts.

The upgraded pact could also boost trade relations between India and the US, deepening their strategic partnership in a sector vital for future technologies. It reflects India’s proactive stance in securing resources critical for its energy transition and economic development.