India-Australia Critical Minerals Partnership: Securing the Green Energy Supply Chain

India and Australia have recently agreed to accelerate their Critical Minerals Investment Partnership, a move that marks a significant milestone in their bilateral economic and strategic relationship. This partnership focuses on securing stable supply chains for minerals such as lithium and cobalt, which are indispensable for high-tech manufacturing, particularly in the electric vehicle (EV) and renewable energy sectors.

As India pushes toward its ambitious goal of achieving Net Zero emissions by 2070, the demand for critical minerals is projected to skyrocket. Currently, the global supply chain for these minerals is highly concentrated, leading to strategic vulnerabilities. By partnering with Australia—a country endowed with vast reserves of lithium and other rare earth elements—India aims to reduce its strategic import dependence on single nations. This is particularly relevant given the current geopolitical landscape where supply chain resilience is increasingly equated with national security.

The partnership involves joint investments and collaboration between Indian entities like Khanij Bidesh India Ltd (KABIL) and Australian mineral projects. Beyond mere procurement, the agreement envisions technological exchange and capacity building in mineral processing. For India, this ensures the success of domestic initiatives like the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) scheme and the Production Linked Incentive (PLI) for Advanced Chemistry Cell (ACC) battery storage. Furthermore, it strengthens the India-Australia Economic Cooperation and Trade Agreement (ECTA), fostering deeper integration between the two Quad partners.