Philippines Eyes India as a Key Nickel Supplier for Electric Vehicles

The Philippines seeks to expand its nickel exports to India, a key market for EV batteries, as both nations discuss a Preferential Trade Agreement. This collaboration aims to bolster India’s self-sufficiency in battery production and promote bilateral trade, currently valued at $3.5 billion. With competitive investment conditions, the Philippines welcomes increased Indian business participation.

The Philippines is strategically positioning itself as a key supplier of nickel for India’s rapidly expanding electric vehicle (EV) industry. As highlighted by Foreign Affairs Secretary Enrique Manalo, the Philippines aims to diversify its nickel export markets, currently dominated by China. India’s significant demand for nickel, evidenced by its imports totaling $707 million from various countries, presents an opportunity for reestablishing supply chains. The Philippines, contributing 11% to global nickel production worth $1.95 billion, views India as a natural and mutually beneficial partner in this sector.

In response to India’s growing EV sector and the government’s emphasis on self-sufficiency in battery production, the Philippines has initiated preliminary discussions for a Preferential Trade Agreement (PTA) with India, which has spanned two years and is now accelerating. Secretary Manalo noted that a PTA could unleash $577 million in untapped export potential for the Philippines, promoting growth across various sectors including automobiles, healthcare, and battery technology. Additionally, the Philippines is inviting Indian commercial vehicle manufacturers to contribute to its vehicle modernization efforts, leveraging India’s recognized expertise in green mobility.

The current bilateral trade between India and the Philippines amounted to $3.5 billion in 2024, reflecting an 8.6% year-on-year growth with a favorable balance for Indian exports, which include pharmaceuticals and automotive components. The Philippines, which achieved a GDP growth of 5.8% in 2024, aspires to become a prominent investment hub, boasting a competitive 20% corporate income tax and VAT exemptions for export-oriented enterprises. To facilitate Indian business participation, the Philippines has established a streamlined e-visa system, particularly focused on expediting processes for investors, as emphasized by Ambassador Josel Francisco Ignacio.

In conclusion, the Philippines is keenly pursuing India as a vital partner for nickel exports, particularly in the context of EV battery production. Ongoing negotiations for a Preferential Trade Agreement aim to enhance economic collaboration by unlocking new trade potentials. With a favorable investment climate and strategic initiatives to attract Indian businesses, the Philippines is set to strengthen bilateral ties and secure its position in the global nickel market.

Original Source: energy.economictimes.indiatimes.com