India, Australia Strengthen Critical Minerals Partnership to Tackle Global Supply Chain Risks

Epoch Times

12-05-2025

India and Australia are expanding their partnership in critical minerals as part of a strategic response to mounting global supply chain challenges and the shift toward clean energy.
With rising geopolitical tensions and unilateral trade barriers, both countries are deepening cooperation to secure access to essential raw materials vital for the production of renewable energy technologies.
'As the world navigates an increasingly fragmented trade landscape marked by unilateral tariff impositions and shifting geopolitical alliances, the case for international cooperation has never been stronger,' said Anindita Sinh, research analyst at the Centre for Social and Economic Progress (CSEP) and lead author of the report that underpins this analysis.
'The strategic alignment between India and Australia in the critical minerals space not only addresses immediate supply chain vulnerabilities but also sets the stage for long-term economic resilience and technological innovation.'
In 2023–24, India's imports from Australia included $11.02 billion (US$7.11 billion) worth of mineral fuels, oils, and related products—underscoring the central role of minerals in bilateral trade.
Australia's status as a top global supplier complements India's rising demand for critical minerals to fuel its clean energy transition and industrial expansion.
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Geopolitical developments have made this collaboration more beneficial. The United States, for example, has imposed a 27 percent tariff on Indian exports such as smartphones and solar photovoltaic modules.
However, critical minerals remain exempt, highlighting their strategic importance.
India and Australia are using this momentum to bolster supply chain security and reduce dependence on dominant suppliers like China.
India has rolled out key policy initiatives, including the National Critical Minerals Mission (NCMM), Production-Linked Incentive (PLI) schemes, and auctions for strategic mineral blocks.
Australia, with its advanced mining infrastructure and rich reserves, is well-positioned to support India's resource needs.
'India's partnership with Australia in this sector is the most advanced and well-established,' Sinh said.
'With tangible developments such as off-take agreements from Australian lithium mines and joint research hubs like the India-Australia Critical Minerals Research Hub, the partnership is at a defining moment—poised to contribute significantly to global supply chain resilience and clean energy ambitions.'
Beyond trade, the two countries are collaborating through joint research initiatives, technology transfer, and academic partnerships, such as the Titanium-Vanadium Processing Project.
These ventures aim to foster innovation and ensure sustainable resource development.
Key Areas to Boost Cooperation
According to the CSEP report, several key areas must be prioritised to strengthen this cooperation further.
First, India's NCMM should be more closely aligned with Australia's export strategy to ensure long-term supply security.
This would support India's net-zero goals and industrial decarbonisation by matching its manufacturing and clean energy ambitions with Australia's abundant mineral resources.
Expanding co-investment in mining and processing is also crucial.
Encouraging Australian firms to partner with Indian stakeholders in mining and refining projects—particularly under India's PLI schemes and strategic mineral auctions—could mobilise both public and private investment.
Australia's mature mining sector offers an advantage that can be further leveraged with appropriate incentives.
Enhancing technology transfer was further identified as necessary for long-term innovation.
Promoting joint development of battery-grade materials and value-added products through collaborations between research institutions and industry actors in both countries would accelerate capacity-building.
The Critical Minerals Research Hub can play a central role in this, while intellectual property concerns may be addressed through mechanisms like the 2020 MoU between India and Australia.
Finally, academic and industry collaboration should be deepened.
Expanding research partnerships and training programs would help develop a skilled workforce in mineral processing and foster innovation in sustainable mining technologies.
Universities and industry stakeholders can play a larger role by focusing research on forward-looking technologies. Structures such as the India-Australia Critical Minerals Research Partnership, which supports joint R&D projects, provide a useful model.
By focusing on these strategic areas, India and Australia have the opportunity to reinforce their positions within the evolving global critical minerals supply chain—an area increasingly tied to national security and economic competitiveness.