Philippines Targets India as Key Nickel Buyer for EV Batteries and Trade Pact Talks

The Philippines targets India as a key nickel supplier for electric vehicle batteries, with ongoing negotiations for a Preferential Trade Agreement aimed at enhancing trade relations and investment opportunities. The bilateral trade reached $3.5 billion in 2024, supported by favorable economic strategies and an e-visa system for Indian investors.

The Philippines is strategically positioning itself as a significant supplier of nickel to India, particularly for electric vehicle (EV) battery manufacturing. Foreign Affairs Secretary, Enrique Manalo, highlighted that the Philippines currently exports nearly all of its nickel—98%—to China, but sees India’s robust EV sector as an excellent opportunity for expansion.

India’s growing demand for electric vehicles has made securing a steady nickel supply crucial. Given this context, the Philippines aims to accelerate talks regarding a Preferential Trade Agreement (PTA) which has been in preliminary discussions for the past two years. Manalo noted that India presents substantial untapped export potential worth $577 million, which could foster growth in various sectors, including automobiles and battery technology.

The bilateral trade between India and the Philippines was valued at $3.5 billion in 2024, reflecting an increase of 8.6% year-on-year, predominantly favoring Indian exports. India contributes pharmaceuticals and automotive components while the Philippines exports machinery and electronic goods, indicating a balanced trade relationship.

Furthermore, the Philippines showcases its appeal as an investment destination with a favorable 20% corporate tax rate and VAT exemptions for export-driven businesses. An e-visa system aimed at simplifying travel for Indian entrepreneurs underscores the Philippines’ commitment to enhancing bilateral commercial ties.

In summary, the Philippines is actively seeking to establish itself as a primary nickel supplier to India, supporting the latter’s growing EV industry. The proposed Preferential Trade Agreement aims to facilitate economic growth in multiple sectors. Strengthening bilateral trade relations is beneficial for both nations, considering their respective roles in global markets and investments.

Original Source: energy.economictimes.indiatimes.com