The Philippines is seeking to establish itself as a primary nickel supplier for India’s electric vehicle battery industry. Foreign Affairs Secretary Enrique Manalo emphasizes a strategic shift in supply chains as discussions for a Preferential Trade Agreement with India gain momentum, reflecting both nations’ commitment to expanding bilateral trade, which reached $3.5 billion in 2024.
The Philippines is strategically positioning itself as a major supplier of nickel for India’s electric vehicle (EV) battery market. Foreign Affairs Secretary Enrique Manalo noted that with India’s substantial nickel imports from other countries, there exists a significant opportunity to restructure supply chains. Currently, 98% of Philippine nickel exports go to China, while the nation’s production accounts for 11% of the global nickel supply, valued at $1.95 billion.
As India accelerates its transition towards electric vehicles and aims for battery manufacturing self-sufficiency, securing a steady nickel supply has become paramount. The Philippines has engaged in discussions regarding a Preferential Trade Agreement (PTA) with India over the past two years, seeking to expedite these negotiations. Manalo highlighted that India presents a $577 million untapped export potential, with a PTA poised to stimulate growth in various sectors including automobiles and battery technology.
Bilateral trade between India and the Philippines reached approximately $3.5 billion in 2024, marking an 8.6% annual growth, with a trade balance favoring Indian exports. The Philippines exports electronic goods and machinery, while India supplies pharmaceuticals and automotive components. Furthermore, the Philippines aims to enhance its attractiveness as an investment hub, boasting a competitive corporate income tax rate and VAT exemptions for export-oriented companies.
To foster collaboration, the Philippines has implemented an e-visa system designed to expedite the investment process for Indian entrepreneurs. Philippine Ambassador Josel Francisco Ignacio indicated ongoing efforts to streamline the visa approval process for Indian businesses, thereby facilitating greater engagement in both trade and investment activities.
In conclusion, the Philippines is actively pursuing India as a key buyer of nickel, essential for the burgeoning EV battery market. The potential Preferential Trade Agreement aims to enhance bilateral trade and investment. With favorable economic conditions and streamlined visa processes, both nations stand to benefit from a strengthened partnership in the rapidly evolving sectors of electric vehicles and battery manufacturing.
Original Source: energy.economictimes.indiatimes.com
