Philippines Seeks India as Strategic Nickel Buyer for Electric Vehicles
The Philippines is seeking to supply nickel to India for EV batteries, as current imports from other countries are substantial. Foreign Affairs Secretary Enrique Manalo is advocating for a Preferential Trade Agreement to expand trade, which has seen significant growth. The Philippines aims to attract Indian investment with favorable policies and streamlined visa processes.
The Philippines is strategically positioning itself to become a key supplier of nickel to India, particularly for the electric vehicle (EV) and battery industries. Currently, India imports $707 million worth of nickel from countries such as Russia, Norway, and Japan. Philippine Foreign Affairs Secretary Enrique Manalo remarked on the opportunity to diversify the supply chain, noting that 98% of the Philippines’ nickel exports are directed to China. Given that the Philippines accounts for 11% of global nickel production with exports valued at $1.95 billion, this makes the nation an essential player in the lithium-ion battery industry.
With India’s escalating adoption of electric vehicles and the government’s emphasis on self-sufficiency in battery manufacturing, securing a reliable source of nickel is vital. The Philippines has engaged in preliminary negotiations for a Preferential Trade Agreement (PTA) with India over the past two years, and discussions are gaining momentum for swift completion. Secretary Manalo highlighted the $577 million untapped export potential that a PTA could unlock, which would benefit various sectors, including automobiles and healthcare.
Trade relations between India and the Philippines are flourishing; bilateral trade reached $3.5 billion in 2024, reflecting an 8.6% year-on-year growth. This relationship favors Indian exports, which include pharmaceuticals and automotive components, while the Philippines exports electronic products and machinery. The Philippines has experienced a GDP growth of 5.8% in 2024 and aims to attract further investment by offering a competitive 20% corporate income tax and VAT exemptions for export-oriented businesses.
To facilitate Indian investment, the Philippines has launched an e-visa system designed to expedite the visa process for entrepreneurs and investors. Philippine Ambassador Josel Francisco Ignacio indicated that measures are being taken to streamline visa approvals to promote deeper business engagement from India.
In conclusion, the Philippines is making significant strides in positioning itself as a critical supplier of nickel for India’s expanding electric vehicle and battery sectors. The potential Preferential Trade Agreement would not only enhance trade relations but also unlock new growth avenues for both nations. With favorable economic indicators and streamlined business processes, the Philippines is poised to become a key investment hub for India, further solidifying bilateral ties.
Original Source: energy.economictimes.indiatimes.com
