As countries navigate US President Donald Trump's sweeping tariffs and China’s curbs on rare earth minerals, India is actively working with Australia for partnerships to secure raw materials for clean tech and electronics manufacturing. Talking to Moneycontrol, Nathan Davis, Australia’s trade and investment commissioner, said Indian companies such as Khanij Bidesh India Limited (KABIL) as well as private ones can take up critical mineral blocks in Australia.
KABIL is a joint venture between the state-owned National Aluminium Company, Hindustan Copper and Mineral Exploration and Consultancy.
“With over 30 minerals identified as critical to global energy transitions, Australia is poised to play a crucial role in supplying India with the materials needed for its green energy infrastructure. Australia has one of the largest lithium reserves in the world and we are focused on bettering our processing and manufacturing of critical minerals, which will enhance their value and make them more applicable for India’s needs,” Davis said.
“The other area for critical minerals where we are aiming to support India is in the solar space. This is to help India's ambition for 10 million solar panels by 2027,” Davis added.
Solar panels primarily rely on silicon, but several other critical minerals are also essential for their construction and functioning. These include copper, silver, indium, gallium and selenium. Additionally, minor metals like cadmium and tellurium play a role in certain solar cell technologies.
On July 9, Trump announced a 50 percent tariff on copper imports to the US, effective August 1. However, given India's focus on domestic consumption and rising demand in sectors such as renewable energy and electric vehicles, the new tariffs are unlikely to significantly affect India's copper trade, according to government officials.
Defence, aerospace also in focus
Davis said defence and aerospace segments are the other, largely untapped areas where Australia is interested in collaborating with India.
“Australia does not have a massive manufacturing base for defence equipment and for defence technologies. But we do have a strong R&D ecosystem for defence technologies and a lot of niche capability. We frequently say that Australia has innovation, and India has scale. We are looking at identifying suitable partnerships and tie-ups for taking Australian capability and an Indian manufacturing scale to globalise it,” he said.
With a growing focus on self-reliance through its Atmanirbhar Bharat initiative, India is increasingly looking to partner with countries that can provide advanced defence technologies, platforms and expertise. India’s defence procurement and technology transfer agreements have strengthened with nations like the US, Russia, France and Israel, covering a wide range of sectors, including air defence systems, fighter jets, drones and missile defence technologies. Additionally, India is also exploring opportunities for joint production and co-development of defence equipment with other countries, aiming to not only enhance its own capabilities but also become a key player in the global defence market.
Trade pact
Without mentioning specific timelines, the Austrade commissioner said a Comprehensive Economic Cooperation Agreement between India and Australia is currently being negotiated and is likely to be concluded in the “short term or near future”.
Currently, India and Australia have an interim trade deal—the Economic Cooperation and Trade Agreement—which was signed on April 2, 2022. Following the signing and implementation of the agreement, total bilateral trade between the two nations hit $24 billion in 2023-24, marking a 14 percent growth in India’s exports to Australia compared to 2022-23.
In February this year, Australia unveiled an ambitious roadmap to deepen and diversify its trade and investment ties with India. The roadmap identified four "superhighways of growth": clean energy, education and skills, agribusiness, and tourism.
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