India and the United States have announced a $1 billion collaboration to finance the development of a domestic clean-energy supply chain, following bilateral talks between Indian Prime Minister Narendra Modi and US President Joe Biden at the QUAD summit.
The funding will be facilitated through the International Bank for Reconstruction and Development (IBRD) and is expected to enhance India’s capacity in the clean energy sector. Key areas of focus include expanding manufacturing capabilities in solar, wind, battery storage, energy grid systems, and high-efficiency air conditioning and ceiling fans.
According to a statement from the Prime Minister’s Office (PMO), “The US and India are committed to working together to capture the benefits of the clean energy transition, including the creation of high-quality jobs for our populations, acceleration of clean energy deployment globally, and achievement of global climate goals.”
This partnership extends beyond India’s borders, as both nations plan to expand cooperation in third countries, particularly through clean energy initiatives in Africa. The collaboration will support investments in technologies such as solar wafers, wind turbine components, and energy storage solutions. The governments will also work with the private sector to identify investment opportunities and initiate pilot projects, including a clean-energy project in Africa.
Both countries have pledged to build trilateral relationships with African nations committed to clean energy deployment, with a particular focus on solar and battery storage technologies. “India and the United States can work multilaterally with African partners to pursue high-potential solar and EV deployment opportunities, understand the conditions required for project success, and implement the project,” the PMO stated.
The collaboration is a strategic move toward achieving global climate targets. The US Development Finance Corporation (DFC) and the US Agency for International Development will partner with the India-based International Solar Alliance to deploy solar and EV charging networks near health facilities in Africa, helping drive clean energy adoption across the continent.
