Philippines Targets India for Nickel Supply Amid Growing EV Industry

The Philippines is targeting India as a key partner for nickel supply, essential for electric vehicle batteries, amid aims for a Preferential Trade Agreement. With growing trade ties and investment incentives, the Philippines seeks to align its nickel exports with India’s burgeoning EV market.

The Philippines seeks to position itself as a significant supplier of nickel to India, particularly in the context of India’s growing electric vehicle (EV) and battery sector. Foreign Affairs Secretary Enrique Manalo noted the country’s strategic opportunity to reshape the nickel supply chain while currently exporting 98% of its nickel to China. With the Philippines accounting for 11% of global nickel production, valued at $1.95 billion, it aims to foster partnerships with nations like India.

India’s increasing demand for a reliable source of nickel aligns with its ambitions for self-sufficiency in battery production amidst rising electric vehicle adoption. The Philippines has engaged in preliminary discussions regarding a Preferential Trade Agreement (PTA) with India for two years. Manalo emphasized, “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.”

As the Philippines advocates for stronger nickel trade ties, it is also inviting Indian manufacturers to participate in its vehicle modernization initiatives, recognizing India’s capabilities in green mobility. The bilateral trade between India and the Philippines reached $3.5 billion in 2024, marking an 8.6% year-on-year growth, largely favoring Indian exports.

The Philippines is emerging as an attractive investment hub, boasting a competitive corporate income tax rate of 20% and VAT exemptions for export-focused businesses. To facilitate Indian investment, the Philippines has implemented an e-visa system alongside efforts to expedite visa approvals for entrepreneurs and investors from India.

In conclusion, the Philippines aims to expand its nickel export market by forging stronger ties with India, particularly in light of India’s focus on electric vehicle production. The ongoing discussions for a Preferential Trade Agreement could enhance trade relations and mutual growth in various industries. With favorable investment conditions, the Philippines is poised to attract Indian businesses, further solidifying its role in the global nickel supply chain and the electric vehicle ecosystem.

Original Source: energy.economictimes.indiatimes.com