Philippines eyes India as key nickel buyer for EV batteries, trade pact talks gain momentum

New Delhi: The Philippines, the world’s second-largest producer of nickel, is looking to diversify its nickel exports beyond China and has invited India to source the key metal for electric vehicle (EV) battery manufacturing. With India importing $707 million worth of nickel from Russia, Norway, and Japan, Philippine Foreign Affairs Secretary Enrique Manalo emphasized the strategic opportunity to realign the supply chain.

"Nearly 98% of our nickel exports currently go to China, and we are looking to expand our reach. India’s fast-growing EV and battery industry makes it a natural partner," Manalo said during an interaction with FICCI members. The Philippines accounts for 11% of global nickel production, with exports valued at $1.95 billion, making it a critical player in the lithium-ion battery ecosystem.

Philippines offers nickel, pushes for preferential trade agreement with India

With electric vehicle adoption rising in India and the government pushing for self-sufficiency in battery manufacturing, securing a stable supply of raw materials like nickel has become a priority.

The Philippines has been in preliminary talks for a Preferential Trade Agreement (PTA) with India for two years, and both sides are now looking to fast-track negotiations. "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," Manalo said.

The Philippines is also inviting Indian commercial vehicle manufacturers to participate in its vehicle modernization program, citing India's expertise in green mobility and electric transport solutions.

Nickel trade boost ties, investment climate favors India

Bilateral trade between India and the Philippines reached $3.5 billion in 2024, growing 8.6% year-on-year, with the balance favoring Indian exports. India supplies pharmaceuticals, automotive components, and agricultural products, while the Philippines exports electronic goods and machinery.

The Philippines, which recorded 5.8% GDP growth in 2024, is positioning itself as a key investment destination, with a competitive 20% corporate income tax rate and VAT exemptions for export-driven enterprises.

To encourage Indian business engagement, the Philippines has introduced an e-visa system, with a fast-track process for investors and entrepreneurs. Philippine Ambassador Josel Francisco Ignacio said the government is working to further streamline visa approvals for Indian businesses.