Context : India and Australia decided to strengthen their partnership in the field of projects and supply chains for critical minerals. Australia confirmed that it would commit USD 5.8 million to the three-year India-Australia Critical Minerals Investment Partnership.
What are critical minerals?
- Critical minerals are elements that are the building blocks of essential modern-day technologies, and are at risk of supply chain disruptions.
- These minerals are now used everywhere from making mobile phones, computers to batteries, electric vehicles and green technologies like solar panels and wind turbines.
- Different nations develop their own lists based on their own requirements and strategic considerations.
How important is the resource?
- Transition to clean energy and the digital economy.
- Supply shock can seriously jeopardise the economy and strategic independence
- Hostile governments or politically unstable regions
- For minerals like lithium and graphite used in electric vehicle (EV) batteries, demand will rise by up to 4,000%.
What is the Significance of India Australia Partnership?
- Reduction in Emissions & Essential Demand: Australia has the resources to help India fulfil its ambitions to lower emissions and meet the growing demand for critical minerals to help India’s space and defence industries, and the manufacture of solar panels, batteries and electric vehicles.
- Expanding Global Trade: India’s strong interest and support for a bilateral partnership will help advance critical minerals projects in Australia while diversifying global supply chains.
- The Path to Achieve Clean Energy: 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.
India-Australia Critical Minerals Investment
Read more : International North – South Transport Corridor
