Philippines Seeks to Establish India as Key Nickel Buyer for EV Batteries
The Philippines is targeting India as a key nickel supplier for electric vehicle batteries with ongoing negotiations for a Preferential Trade Agreement. With substantial global nickel production and a growing trade relationship, both countries are positioned to strengthen economic ties through investments and exports.
The Philippines is strategically positioning itself to engage India as a significant buyer of nickel, crucial for electric vehicle (EV) batteries. Philippine Foreign Affairs Secretary Enrique Manalo highlighted India’s potential amid its current imports of nickel valued at $707 million from Russia, Norway, and Japan. He remarked, “Nearly 98% of our nickel exports currently go to China, and we are looking to expand our reach. India’s fast-growing EV and battery industry makes it a natural partner.” With an 11% share of global nickel production and exports valued at $1.95 billion, the Philippines is integral to the lithium-ion battery supply chain.
As India ramps up its electric vehicle adoption and strives for self-sufficiency in battery production, access to stable sources of nickel is essential. The Philippines has been engaged in preliminary discussions for a Preferential Trade Agreement (PTA) with India for two years and aims to accelerate these negotiations. Manalo stated, “India holds $577 million in untapped export potential for the Philippines, and a PTA will drive growth in sectors like automobiles, healthcare, and battery technology.” Additionally, the Philippines invites Indian commercial vehicle manufacturers to join its vehicle modernization initiatives, leveraging India’s advances in green mobility and electric transportation.
In 2024, bilateral trade between India and the Philippines reached $3.5 billion, reflecting an 8.6% increase year-on-year, predominantly benefiting Indian exports. India exports pharmaceuticals, automotive components, and agricultural products, while the Philippines contributes electronic goods and machinery. With a GDP growth of 5.8% in 2024, the Philippines aims to become an attractive investment hub, offering a competitive 20% corporate income tax rate and VAT exemptions for export-driven businesses.
To enhance collaboration, the Philippines has implemented an e-visa system facilitating swift approvals for investors and entrepreneurs from India. Philippine Ambassador Josel Francisco Ignacio indicated ongoing efforts to expedite visa processes to foster greater business engagement from India.
In conclusion, the Philippines is keenly pursuing India as a crucial partner in the nickel market, essential for the burgeoning EV battery sector. The proposed Preferential Trade Agreement presents significant export opportunities for both countries. As bilateral trade flourishes, the Philippines is positioned as a favorable investment destination, bolstered by reforms in visa processes and competitive taxation, which together aim to deepen economic ties between the nations.
Original Source: energy.economictimes.indiatimes.com
