According to the Ministry of External Affairs, India and the US have inked a deal to provide $1 billion for the development of clean energy technology in India and to provide a stable supply chain for clean energy components.

"The U.S.-India Roadmap to Build Safe and Secure Global Clean Energy Supply Chains, which launched a new initiative to accelerate the expansion of safe and secure clean energy supply chains through U.S. and Indian manufacturing of clean energy technologies and components, was welcomed by President Biden and Prime Minister Modi," the Ministry of External Affairs stated.

To begin this relationship, the US and India are working together to unlock $1 billion in new multilateral finance through the International Bank for Reconstruction and Development (IBRD), according to a statement from the Ministry of External Affairs (MEA).

Projects with the goal of strengthening the growth of India's domestic clean energy supply chain will be supported by this financing. Initially, the two countries would collaborate to secure multilateral funding for clean energy projects encompassing the whole clean energy value chain, including zero-emission vehicles, high-efficiency cooling systems, renewable energy, energy storage, power grid and transmission technologies, and other cutting-edge clean technologies.

The two leaders emphasized that the US International Development Finance Corporation (DFC) has so far provided $500 million to First Solar to build and run a solar module manufacturing facility in India, and $250 million to Tata Power Solar to build a solar cell manufacturing facility. A new Memorandum of Cooperation between the International Solar Alliance and the US Agency for International Development was also announced by US President Biden and Prime Minister Modi. Through the use of a range of renewable energy sources, the agreement seeks to advance more sustainable and resilient power networks.

The Leaders expressed their intention to use the new Renewable Energy Technology Action Platform (RETAP) to strengthen cooperation on clean energy manufacturing and global supply chains, including through public-private task forces on hydrogen and energy storage. They also welcomed collaboration on the establishment of a new National Center for Hydrogen Safety in India. They also praised the cooperation between the two countries under the Strategic Clean Energy Partnership (SCEP), the most recent of which took place in Washington, DC, on September 16, 2024.

According to the White House, this alliance intends to improve energy security, encourage innovation in clean energy, address climate change, and create job opportunities by collaborating between industry and research and development and creating capacity.