Philippines Seeks to Supply India with Nickel to Reduce Reliance on China

The Philippines has invited India to source nickel for battery production, aiming to diversify its export markets and reduce dependence on China, which currently accounts for 98% of its nickel exports. Foreign Minister Enrique Manalo emphasized the need for stronger trade partnerships, highlighting the opportunity for greater economic collaboration between Manila and New Delhi.

Speaking at a Federation of Indian Chambers of Commerce & Industry (FICCI) event, Manalo underscored the urgency of accelerating negotiations for a Preferential Trade Agreement (PTA) between the two nations. He pointed to key industries such as automobiles, batteries, and IT services as areas of potential cooperation, while also stressing the importance of collaboration in pharmaceuticals, healthcare, and agriculture.

India, which has been working to expand its electric vehicle (EV) and clean energy sectors, has been actively securing access to critical minerals. The country has already engaged with Australia and Argentina for rare earth resources, as China remains the dominant force in global battery metal supply chains. A partnership with the Philippines would provide India with a new and strategic source of nickel, essential for lithium-ion battery production.

The Philippines, contributing 11% of global nickel output, ranked as the world's second-largest producer in 2023. Nickel exports from the country reached $1.95 billion last year, with most of the material destined for battery manufacturing. With rising global demand for sustainable energy solutions, enhanced cooperation between India and the Philippines could help build a more resilient and diversified supply chain for battery production.