The US and India maintain a long-standing commitment to strengthening their collaboration on matters of mutual national and economic security.
In pursuit of these goals, the US and India plan to elevate and broaden bilateral technical, financial, and policy support to increase complementary manufacturing capacity for clean energy technologies and components in both countries.
Additionally, they aim to lay the foundation for enhanced cooperation in third countries, particularly focusing on partnerships in Africa. This initiative will build on existing clean energy collaboration between the US and India, including initiatives launched during Prime Minister Modi’s 2023 visit to the US, the Strategic Clean Energy Partnership led by the US Department of Energy and Indian government ministries, technical assistance from US laboratories, and innovative financial platforms such as the Payment Security Mechanism established to support the swift deployment of electric buses in India.
The partnership between the US and India to create a shared, resilient, and cutting-edge techno-industrial base focused on innovative clean energy manufacturing techniques serves as a strong model globally, positioning both nations to lead clean economic development in the 21st century.
To initiate this partnership, the US and India are working to unlock $1bn in new multilateral financing through the International Bank for Reconstruction and Development (IBRD) for projects aimed at catalysing India’s domestic clean energy supply chain development.
This funding could help expand supply-side manufacturing capacity for key technological areas, with an emphasis on solar, wind, battery, energy grid systems, and high-efficiency air conditioner and ceiling fan supply chains.
Over time, there are ambitions to mobilise additional financing for priority clean energy manufacturing sectors by leveraging public and private financial tools and pioneering innovative financial mechanisms to meet the growing demand for adaptable climate finance solutions.
The US and India intend to collaborate with relevant government agencies, civil society organisations, the US and Indian private sectors, philanthropic entities, and multilateral development banks to identify a package of pilot projects across the clean energy value chain.
These projects will meet eligibility criteria and contribute significantly to the expansion and diversification of supply chains in targeted sectors. Furthermore, both governments commit to working with industry leaders on the following efforts to launch and eventually scale this new partnership.
Identifying near-term investment opportunities to expand manufacturing capacity for specific clean energy supply chain segments, with an initial focus on the following components:
- Solar wafers and wafer manufacturing equipment, alongside next-generation solar cells
- Wind turbine nacelle components
- Power transmission line components, including conductors, cabling, transformers, and next-generation technologies
- Energy storage components such as batteries
- Battery packs for 2- and 3-wheel electric vehicles (EVs), along with zero-emission e-bus and truck components
- High-efficiency air conditioner and ceiling fan components
Collaboration with the private sector will be key to identifying viable opportunities within these supply chain segments and supporting an initial portfolio of pilot projects, ideally including one focused on clean energy deployment in Africa. Additional investment plans and funding sources may develop over time. This initiative builds on private sector partnerships facilitated by the U.S. Development Finance Corporation (DFC) across the solar, wind, battery, and critical minerals sectors to explore financing opportunities for clean energy component manufacturing.
These investments could align with India’s Green Transition Fund, which aims to support renewable energy, storage, and e-mobility investments, strengthening demand for localised manufacturing. Additionally, the DFC-backed $900m fund managed by Indian private equity firm Eversource Capital is set to invest in clean technologies, including renewable energy, efficient cooling, and electric transport.
Both nations will also work with industry leaders to develop policies that strengthen demand certainty for locally manufactured clean technologies.
