India and Australia have reached a significant milestone in their efforts to get investment in critical minerals projects that would help the two countries expand supply chains.
Minister for Resources and Northern Australia Madeleine King and India’s Honourable Minister for Parliamentary Affairs, Coal and Mines Shri Pralhad Joshi have also decided to expand their commitments to the Australia-India Critical Minerals Investment Partnership.
In a statement released on Friday, the Australian Government reported that Minister King and Minister Joshi held bilateral consultations on Friday and stated that the Partnership had chosen five target projects (two lithium and three cobalt) for detailed due diligence.
The Partnership’s investments will strive to establish new supply chains based on critical minerals processed in Australia, which would aid India’s efforts to reduce emissions from its power grid and become a global manufacturing powerhouse, including for electric vehicles.
Minister King stated that India’s plans to reduce carbon emissions and increase electric vehicle production give significant potential and prospects for Australia’s vital resources sector, renewable exports, and the development of stronger supply chains.
“We are delighted to announce we have completed the first phase of work under the Partnership, and taken an important step to building new, robust and sustainable supply chains between India and Australia for the key battery minerals such as lithium and cobalt,” Minister King said.
Minister King added that through market research and collaboration with commercial advisers, the partnership had identified five projects for which the parties would sign non-disclosure agreements and commence extensive due diligence.
“Working together, both the nations are committed to reducing emissions, guaranteeing energy security and diversifying global markets for critical minerals and clean technologies,” Minister King said.
According to the Federal Government, Australia produces about half of the world’s lithium, is second in cobalt production, and ranks fourth in rare earths production.
With worldwide demand for low-emissions technology likely to rise over the next three decades, the Government added that the Partnership would go a long way towards securing mutually beneficial critical mineral supply chains.
“The partnership between India’s KABIL and CMO Australia has reached the first milestone in a short span of one year from signing of the MoU in March 2022 between both the organisations,” Minister Joshi said.
