India and the United States are likely to sign an initial pact for cooperation on critical minerals this week, two Indian government sources said, as the two countries try to bolster trade ties despite diplomatic hiccups.

They are expected to sign an agreement to partner and cooperate in the area of critical minerals during Indian trade minister Piyush Goyal's visit to Washington, the sources said.

Goyal is scheduled to be in the U.S. this week to discuss ways to deepen overall bilateral trade ties, according to one of the sources, weeks before the White House's preparation for a leadership change following the presidential election later this year.

Goyal is expected to meet U.S. Commerce Secretary Gina Raimondo and U.S. Trade Representative Katherine Tai this week, according to a statement from the Indian government.

A spokesperson for Tai's office could not immediately be reached for comment. She is due to meet with Goyal on Thursday in Washington, according to a USTR public schedule.

Earlier this month, Indian Prime Minister Narendra Modi and President Joe Biden met in Delaware one-on-one as well as part of the Quad grouping which also includes the leaders of Australia and Japan.

The initial pact on critical minerals would help build supply chains, exchange technical know-how, and promote collaboration between Indian and American businesses in the sector, the first official said.

India's federal trade ministry and the U.S. embassy did not immediately respond to a Reuters email for comment.

"The two sides are negotiating a MoU (memorandum of understanding) which intends to enhance bilateral collaboration to increase and diversify essential critical mineral supply chains and leverage their complementary strengths," the Indian trade ministry said on Sept. 29.

Reuters reported in June that state-run Coal India Ltd is exploring lithium blocks in Argentina along with a U.S. company to secure supplies of the battery material.

India has also proposed a separate critical minerals trade deal with the United States. This deal would prohibit the imposition of tariffs by both countries and will be similar to a pact with Japan that grants Japanese automakers wider access to a U.S. electric vehicles tax credit.

India is a member of the U.S.-led Minerals Security Partnership, which aims to ensure adequate supplies of minerals needed to meet zero-carbon goals. Last year, Modi's government identified 30 minerals, including lithium and nickel, as critical for driving the adoption of clean energy.

India-U.S. bilateral trade in the 2023-24 fiscal year stood at nearly $120 billion, a record high. Under the Biden administration, the two countries mutually resolved all their disputes at the World Trade Organisation, a development India called "historic".

(Reporting by Shivangi Acharya and Neha Arora; additional reporting by David Lawder in Washington; Editing by Mayank Bhardwaj, Muralikumar Anantharaman, Louise Heavens and Jonathan Oatis)