India-Australia Critical Minerals Partnership: Powering the Green Transition

India and Australia have significantly advanced their cooperation under the Critical Minerals Investment Partnership, focusing on securing the supply of lithium and cobalt. This strategic alignment is a cornerstone for India’s transition toward a low-carbon economy and its ambitious electric mobility goals. Australia, holding some of the world’s largest reserves of critical minerals, is a natural partner for India, which is currently heavily dependent on imports for these essential raw materials.

The partnership is particularly crucial for the success of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME-II) scheme. Lithium and cobalt are indispensable components of Lithium-ion batteries, which power electric vehicles (EVs) and store renewable energy. By securing a direct investment pipeline and supply chain with Australia, India aims to mitigate the risks associated with price volatility and supply disruptions often seen in global markets dominated by a single source.

Beyond EVs, this collaboration supports India’s broader commitment to achieving Net Zero by 2070. It facilitates the indigenization of battery manufacturing technology, aligning with the 'Make in India' initiative and the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage. Furthermore, the partnership strengthens the bilateral relationship under the Comprehensive Strategic Partnership, reflecting a shared interest in a stable and resilient Indo-Pacific supply chain.

For governance and policy, this move signifies a shift toward 'resource diplomacy,' where securing access to critical minerals is as vital as traditional energy security. It highlights the proactive role of the state in de-risking the private sector's transition to green technologies by ensuring raw material security through international treaties.