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      Home » India & Australia To Cooperate In Critical Minerals, EV Sector

      India & Australia To Cooperate In Critical Minerals, EV Sector

      Garima SharmaBy Garima SharmaJuly 11, 2024 EV Battery 2 Mins Read
      India & Australia To Cooperate In Critical Minerals, EV Sector
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      India and Australia are exploring avenues to enhance collaboration in critical minerals, mineral processing, and EV battery production, according to Commerce Secretary Sunil Barthwal.

      The announcement comes as both nations continue negotiations to expand their existing interim free trade agreement into a comprehensive pact.

      Speaking at a conference on vehicle electrification, Barthwal highlighted the potential for economic integration between the two countries in areas such as mineral production, battery manufacturing, and vehicle production.

      He also noted that the Indian government has implemented various measures to promote domestic electric vehicle (EV) manufacturing and strengthen the associated ecosystem, including charging infrastructure.

      Australian High Commissioner to India, Philip Green OAM, emphasised Australia’s significant mineral and energy resources that could support India’s manufacturing initiatives.

      Australia, being the world’s largest producer of lithium and second-largest producer of cobalt, is well-positioned to supply critical minerals essential for clean energy technologies.

      Green stressed the importance of a full free trade agreement to facilitate easier access for India to Australia’s critical minerals and capabilities, which he believes are crucial for India’s green transition.

      The Commerce Secretary also mentioned ongoing collaborations with other countries and blocs, including Norway (part of the European Free Trade Association) and the European Union, particularly in renewable energy and technology sectors.

      Barthwal highlighted the rapid growth of EV sales in India, suggesting significant opportunities for investors across the entire value chain, from EV manufacturing to battery production and charging infrastructure.

      He indicated that the government is focusing on developing the whole ecosystem, including mineral production, and is considering incentives to address sector-specific challenges.

      The Indian government has already implemented schemes such as Faster Adoption & Manufacturing of Electric Vehicles (FAME) and a production-linked incentive scheme to boost the EV sector. Barthwal noted that approximately 1.7 million EVs have been sold in India to date.

      The Commerce Secretary concluded by estimating a potential market opportunity of close to USD 500 billion in the EV and related sectors, emphasising the government’s efforts to create a conducive ecosystem for investments through collaboration with state governments and initiatives to improve ease of doing business.

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