India, Australia explore tie-ups in critical, strategic minerals

India and Australia will explore investment opportunities in lithium, cobalt mineral assets, said the union minister for coal and mines Pralhad Joshi. 

The ministry is on a visit to Australia. On Monday, he held talks with Resources and Northern Australia Minister Madeleine King.

A statement from the Australian government said both the countries have strengthened cooperation on development of critical minerals projects and supply chains following the meeting of the ministers.

“We have recently signed an MoU between Khanij Bidesh India Ltd, and the Critical Minerals Facilitation Office (CMFO), Australia, which aims to ensure reliable supplies of Critical and Strategic Minerals to India,“ Joshi said.

The MoU includes joint due diligence in lithium and cobalt mineral assets of Australia. Both CMFO and the Indian JV KABIL will jointly fund the due diligence process with an initial total amount of $6 million, he added. 

“Once the due diligence is completed and potential projects are identified, we will explore investment opportunities through different methods as envisaged in the MoU,” Joshi said.

At the meeting, the Australian minister King confirmed that Australia would commit $5.8 million to the three-year India-Australia Critical Minerals Investment Partnership.

Following talks with Joshi, King said that Australia and India are natural partners on critical minerals and the two countries share a commitment to lowering emissions and boosting the use of renewable energy.

“Australia is a trusted supplier of resources and energy to India, and we can build on the success of those established supply chains as Australia’s critical minerals sector grows,” Minister King said.

Australia has the resources to help India fulfil its ambitions to lower emissions and meet growing demand for critical minerals to help India’s space and defence industries, and the manufacture of solar panels, batteries and electric vehicles, she said.

“Australia welcomes India’s strong interest and support for a bilateral partnership which will help advance critical minerals projects in Australia while diversifying global supply chains.”

Joshi noted that India is among the fastest growing economies in the world and there is huge scope for collaboration in the mineral sector. Technology transfer, knowledge-sharing and investment in critical minerals like lithium and cobalt are strategic to achieving clean energy ambitions, he said, adding that the future looks promising for India and Australia.

Australia hosts vast reserves of critical minerals, such as lithium and cobalt, which are crucial for clean energy technologies such as batteries and electric vehicles, as well as mobile phones and computers.

Following the talks, both the ministers toured the Tianqi Lithium Refinery at Kwinana.