Philippines Targets India as Key Nickel Supplier for Electric Vehicle Batteries
The Philippines is focusing on India as a vital nickel buyer for electric vehicle batteries, aiming to diversify exports currently dominated by China. Ongoing negotiations for a Preferential Trade Agreement (PTA) seek to capitalize on India’s growing EV market, potentially boosting bilateral trade, which reached $3.5 billion in 2024. The Philippines plans to streamline visa processes for Indian investors, aiming to attract business in various sectors.
The Philippines is looking to strengthen ties with India by promoting its nickel exports, particularly for use in electric vehicle (EV) batteries. Foreign Affairs Secretary Enrique Manalo stated that the country is aiming to realign its supply chain, as 98% of its nickel exports currently go to China. With the Philippines contributing 11% to global nickel production and valued exports at $1.95 billion, India is viewed as a strategic partner due to its rapidly expanding EV sector.
As India’s electric vehicle market grows, the Philippines has engaged in preliminary discussions regarding a Preferential Trade Agreement (PTA), which has been ongoing for two years. Manalo indicated that India presents a significant untapped export potential of $577 million for the Philippines, and a PTA could stimulate growth in various sectors such as automobiles, healthcare, and battery technology.
The bilateral trade between India and the Philippines reached $3.5 billion in 2024, marking an 8.6% increase from the previous year, primarily favoring Indian exports. The Philippines exports electronic goods and machinery while importing pharmaceuticals and automotive components from India. Amid a robust GDP growth of 5.8%, the Philippines aims to enhance its appeal as an investment destination with favorable corporate tax rates and streamlined visa processes for Indian businesses.
The Philippines is strategically positioning itself as a key supplier of nickel to India, which is rapidly advancing its electric vehicle landscape. Ongoing negotiations for a Preferential Trade Agreement highlight the potential for enhanced trade relationships and economic growth in both nations. With promising investment opportunities and supportive measures for Indian businesses, the Philippines is set to strengthen bilateral ties in the coming years.
Original Source: energy.economictimes.indiatimes.com
