According to Commerce Secretary Sunil Barthwal, Australia and India are looking for ways to strengthen their EV cooperation in the manufacturing of batteries, mineral processing, and essential minerals.
The announcement coincides with ongoing talks between the two countries to turn their current provisional free trade deal into a comprehensive agreement.
Barthwal emphasized the possibility of economic integration between the two nations in sectors including mineral production, battery manufacturing, and car production when speaking at a symposium on vehicle electrification.
Additionally, he mentioned that the Indian government has put in place a number of initiatives to support homegrown production of electric vehicles (EVs) and fortify the ecosystem that supports them, including the infrastructure needed for charging them.
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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