India, US aim to secure USD 1 billion fund to build clean energy supply chains

The aim of the collaboration is to globally elevate clean energy and make it more accessible, with plans to lay groundwork for cooperation with developing countries and a focus on partnering with Africa.

In Short

• PM Modi and Biden discussed building clean energy supply chain
• Plan to expand clean energy manufacturing capacity, collaboarte with Africa
• Efforts seek $1 billion to expand Indian manufacturing capacity

India and the US are working to acquire USD 1 billion from the International Bank for Reconstruction and Development (IBRD) to establish a partnership between the two nations to expand manufacturing of clean energy components and build a secure global clean energy supply chain, the White House said after PM Modi and Joe Biden held a bilateral talks on the sidelines of Quad Summit.

The funding will be able to finance the expansion of India’s manufacturing capacity, allowing it to provide key technology components related to solar, wind, battery, energy grid systems, and high-efficiency air conditioner and ceiling fan supply chains.

The talks held at President Biden’s residence in Wilmington, Delaware covered a range of discussions between the two leaders, including ways to grow US-India relations and addressing regional and global issues.

“The United States and India share an enduring commitment to deepen our collaboration on issues of shared national and economic security,” the White House said in a released statement.

“United States and India intend to elevate and expand bilateral technical, financial, and policy support to expand complementary US and Indian manufacturing capacity for clean energy technologies and components,"

The aim is to make clean energy and make it more accessible, with plans to lay groundwork for cooperation in developing countries and a focus on partnering with Africa. The two governments are planning to collaborate with governments and private organisations to make these projects a reality. The countries are also planning to work with industry leaders to identify investment opportunities for specific clean energy segments.

Both the nations also plan to form a trilateral partnership with Africa, focusing on solar energy and battery storage capabilities.

"This roadmap is intended to serve as a short-term mechanism for driving initial cooperation on projects, to help inform a long-term roadmap including working together to establish a cadence of meetings and milestones for this partnership," the White House said.