India-Australia Critical Minerals Investment Partnership
According to Union Minister for coal & mines (Pralhad Joshi), under “India-Australia Critical Minerals Investment Partnership”, both the countries will explore investment opportunities in cobalt and lithium mineral assets.
- India and Australia have strengthened cooperation on critical minerals development projects and supply chains.
- India-Australia Critical Minerals Investment Partnership will run for three years.
- Both the countries inked an MoU between Khanij Bidesh India Ltd, and Critical Minerals Facilitation Office (CMFO) of Australia.
What this MoU talks about?
- This MoU is aimed at ensuring reliable supplies of Critical and Strategic Minerals to India.
- It includes due diligence in lithium and cobalt mineral assets.
- The due diligence process will be funded by CMFO and Indian JV KABIL. Initially, USD 6 million will be funded.
- After the identification & completion of due diligence and potential projects, both sides will explore investment opportunities through different methods in the MoU.
Australian Commitment to the Investment Partnership
Australia will provide USD 5.8 million to the India-Australia Critical Minerals Investment Partnership. Both the countries are natural partners on critical minerals. They share a common goal of lowering carbon emissions and increasing the use of renewable energy. Australia supplies resources and energy to India. Australia has the resources like lithium, & Cobalt, thorough which it can help India in completing its target of lower emissions. These resources from Australia would also help India in meeting its increasing demand for critical minerals in space and defence industries. It would be useful in manufacturing solar panels, electrical vehicles and batteries.
About critical minerals
Critical minerals are considered as the building blocks of essential modern-day technologies. They are at the risk of supply chain disruptions.
Application of critical minerals
Critical minerals are used for making mobile phones, batteries, computers, electric vehicles, and green technologies such as wind turbines & solar panels.
India and Australia share a comprehensive strategic partnership, as they were under British control. Diplomatic relations are also well established. Both the countries are member of Commonwealth of Nations. Military ties between both include the joint naval exercise AUSINDEX, which is held every two years.
Month: Current Affairs - July, 2022
Category: International / World Current Affairs
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