India-Australia Cooperation: Critical Minerals for Economic Security

As the global transition to clean energy accelerates and supply chain vulnerabilities become more pronounced, critical minerals have emerged as a focal point in international economic diplomacy. India and Australia, both key players in the Indo-Pacific, have intensified their engagement on critical minerals, recognising their strategic importance for economic and energy security, technology development, and industrial resilience. 

Minerals fuels, oils and products of their distillation are the top imports from Australia to India, standing at USD 11,021 billion in 2023-24. According to the Confederation of India Industry (CII), the critical minerals and the mining sector are poised to become key drivers towards enhancing the bilateral economic cooperation between the two countries in the coming years. India is Australia’s sixth largest trading partner and Australia is a key investment destination for India. 

The global trade arena is undergoing a significant transformation. As protectionist policies and geopolitical tensions escalate, supply chains are increasingly vulnerable to disruptions. One of the most consequential developments is the Trump administration’s imposition of reciprocal higher tariffs. Under this policy, imports from India in sectors such smartphones and solar photovoltaic modules, and could face a punitive 27% duty. However, critical minerals and other goods, like certain energy products, pharmaceuticals, and bullion, currently remain exempt from these duties. This patchwork of tariffs is set to intensify trade fragmentation and destabilise established global supply chains and raising alarms over ensuring economic security. 

In this era of economic uncertainty, international cooperation has never been more essential. The partnership between India and Australia stands as a strategic beacon amid this fragmentation as both countries move towards ensuring economic security. Australia, endowed with vast reserves of critical minerals such as lithium, cobalt, graphite, and gallium, is already a global powerhouse in resource production. Meanwhile, India, driven by its clean energy agenda and ambitious industrialisation goals, is rapidly emerging as one of the world’s largest consumers of these essential materials. 

India’s policy framework featuring initiatives like the National Critical Minerals Mission (NCMM), Production-Linked Incentive (PLI) schemes, and strategic auctions for mineral blocks, underscores its determination to secure a steady supply of raw materials for its booming manufacturing and renewable energy sectors. At the same time, Australia’s robust mining sector and forward-thinking policy landscape make it a natural supplier capable of meeting not just domestic demand, but also filling the supply gaps for key trade partners like India. For India, the depth and breadth of the critical minerals cooperation with Australia makes it the most advanced partnerships in this emerging and increasingly important sector. 

As countries reduce reliance on dominant suppliers like China, partnerships such as the one between India and Australia offer an opportunity to build robust and resilient supply chains.

In the wake of geopolitical uncertainties, such as disruptions in supply chains caused by conflicts and economic sanctions, securing access to critical minerals is now a matter of national security for both India and Australia. As countries reduce reliance on dominant suppliers like China, partnerships such as the one between India and Australia offer an opportunity to build robust and resilient supply chains. This article explores the evolution of the India-Australia economic relationship, Australia’s domestic and international policies in the critical minerals sector, the evolution of India and Australia’s critical minerals cooperation, and the pathways for enhancing this partnership. 

India-Australia Geoeconomic Engagement 

The India-Australia relationship has undergone a significant transformation over the past two decades, evolving from a limited engagement into a comprehensive economic and strategic partnership. This shift has been underpinned by shared democratic values, economic complementarities, and a common vision for a free and open Indo-Pacific. As India’s External Affairs Minister, S. Jaishankar stated in November 2023 India has “growing convergences with Australia, and at the heart of it is really, a shared commitment to a free, open, inclusive, prosperous and rules-based Indo-Pacific region, based on UNCLOS, as the constitution of the seas.” The two partners are committed to working together to enhance their bilateral partnership. 

This deep-rooted relationship was significantly formalised in 2020 when the two countries elevated their bilateral ties to a Comprehensive Strategic Partnership (CSP), marking a decisive step toward enhanced cooperation in defence, trade, and technology. The CSP not only recognised their shared commitment to a free and open Indo-Pacific but also set the stage for broad-based collaboration that has since expanded across multiple sectors. 

In 2022, the Economic Cooperation and Trade Agreement (ECTA) further strengthened these bonds by boosting trade and investment flows while reducing tariffs, thus providing a much-needed boost to industries ranging from energy to manufacturing. This agreement exemplifies the practical benefits of their partnership, offering a framework for increased economic interaction and market access that supports mutual growth. Building on the foundations of the ECTA, negotiations for a Comprehensive Economic Cooperation Agreement (CECA) are underway, which will further bolster the bilateral partnership. Moreover, the strategic dialogue within key regional forums—such as the Quad and the Indo-Pacific Economic Framework (IPEF)—has underscored the critical role both nations play in maintaining a balanced and secure regional order.  

…this partnership is one of India’s most developed bilateral partnership in the critical minerals space.

Beyond formal agreements, the partnership has been reinforced by collaborative initiatives in defence and academic research. Joint ventures, technology transfer programs, and academic collaborations have contributed to a shared vision of innovation and resilience. The India-Australia Critical Minerals Research Partnership funds various collaborative research projects such as the Titanium-Vanadium Processing Project which aims to unlock processing technology for both these mineral reserves in the two countries. Showcasing that this partnership is one of India’s most developed bilateral partnership in the critical minerals space. Other programs such as the Maitri Fellowships and Grants under the Centre for Australia-India Relations and Quad Fellowship highlight the keen interest and political will between the two countries to develop closer ties. Such efforts have not only deepened the bilateral relationship but have also positioned India and Australia as key partners capable of shaping regional policies and contributing to a more secure global environment. 

These developments provide a robust framework for deeper cooperation in the critical minerals sector, where Australia’s resource wealth complements India’s manufacturing and technological ambitions. Creating a strong foundation to ensure economic security for both nations. 

Australia’s Critical Minerals Policy Landscape 

Australia has been at the forefront of developing a robust critical minerals strategy, both to strengthen its domestic industry and to position itself as a reliable global supplier. The country has leveraged its mineral-rich geography and strong policy framework to enhance international cooperation, diversify supply chains, and reduce dependence on dominant suppliers like China. Table 1 highlights some of the key domestic and international policy developments undertaken by Australia to position itself as a key supplier for critical minerals.   

Australia’s role as a major producer of lithium, cobalt, and rare earth elements makes it a key player in global supply chains. Through partnerships under frameworks like the Minerals Security Partnership (MSP), IPEF, and Quad, Australia has positioned itself as a stable and responsible supplier of minerals essential for clean energy and advanced technologies. Its collaboration with India, among other nations, is set to deepen as both countries align their strategies to build resilient supply chains. 

Table 1: Australia’s key policies in the critical minerals sector 

Source: International Energy Agency critical minerals policy tracker database and other sources based on author’s compilation. Not exhaustive. 

India-Australia Critical Minerals Cooperation: Key Developments 

Among India’s bilateral initiatives on critical minerals, the cooperation with Australia stands out as the most advanced. At the launch of the Critical Minerals Investment Partnership in March 2023, Minister for Resources and Northern Australia, Madeline King stated:

India’s partnerships with Australia in this sector is the most advanced and well established with tangible developments such as off-take agreements from Australian lithium mines, established joint research and collaboration hubs such as the India-Australia Critical Minerals Research Hub. 

The India-Australia critical minerals partnership is at a defining moment, poised to contribute significantly to global supply chain resilience and clean energy ambitions. With complementary strengths—Australia’s resource wealth and India’s manufacturing and technological capabilities—both nations stand to gain from deeper collaboration in mining, processing, and research.  

There are 24 common minerals between the lists identified by the two countries (see Table 4 under Annex). This reflects a strong alignment with the potential for collaboration between the two nations in securing and developing these essential resources. Table 3 highlights cooperation potential between the two partners on key critical minerals such as lithium, nickel and others. 

In 2022 the signing of the ECTA marked a significant milestone in boosting trade and investment flows by reducing tariffs and facilitating market access; the agreement is expected to substantially increase two-way trade, particularly benefiting sectors like energy, resources, and manufacturing. Both nations further solidified their commitment to supply chain resilience, especially in the realm of critical minerals and emerging technologies, under the Quad’s Critical and Emerging Technologies and Climate Working Groups. The Critical Minerals Dialogue established under the IPEF focuses on minerals security as a crucial area of cooperation. The two also actively participate in the different pillars of the IPEF and in the MSP further bolstering avenues for cooperation in this sector.  

This strategic alignment is complemented by India’s ambitious domestic initiatives, including the National Electric Mobility Mission Plan, PLI schemes, auctions of mineral blocks, and renewable energy targets, all of which align with Australia’s goal of being a reliable and responsible supplier of critical minerals. In 2022, the India-Australia Critical Minerals Investment Partnership was announced, focusing on joint ventures, technology transfer, and co-investment in the exploration and processing of critical minerals. 

Table 2: India-Australia Critical Minerals Cooperation 

Source: Author’s compilation based on various sources. 

India’s partnership with Australia represents its most advanced bilateral cooperation in the critical minerals domain, reflecting a shared commitment to resilient supply chains and clean energy transitions.

Pathways to Enhance Cooperation 

India’s partnership with Australia represents its most advanced bilateral cooperation in the critical minerals domain, reflecting a shared commitment to resilient supply chains and clean energy transitions. As India looks to diversify its sources and secure access to strategic resources, geoeconomic developments underscore the importance of deepening ties not only with established partners like Australia but also other resource-rich regions. Australia’s robust policy ecosystem and mature mining sector complement India’s large market, industrial ambitions, and climate goals, making the two natural partners in this space. Building on this strong foundation, there are several avenues through which the India-Australia critical minerals partnership can be further strengthened. Table 3 delineates some areas of cooperation between the two partners on some specific minerals. 

To strengthen India-Australia critical minerals cooperation, the following areas must be prioritised: 

1. Furthering India’s Critical Minerals Mission: India’s recent policy focus on securing raw materials can be aligned with Australia’s export strategy to ensure long-term supply security. This includes aligning Australia’s abundant mineral resources with India’s manufacturing and clean energy ambitions, particularly in the context of its net-zero goals and the decarbonisation of industries. 

1. Expanding Co-Investment in Mining and Processing: Encouraging Australian firms to partner with Indian stakeholders in mining and refining projects, particularly under the PLI schemes and strategic mineral auctions initiated by the Indian government. Thus, providing a boost for both the public and private sector to invest in the supply chains. Australia’s mining sector is one of the largest and most developed in the world and leveraging and incentivising the private sector. 

1. Developing Recycling and Circular Economy Initiatives: Establishing joint research projects for advanced materials recycling to reduce dependence on virgin resources, ensuring that supply chains are not just robust but also sustainable. 

1. Enhancing Technology Transfer: Promoting joint development of battery-grade materials and value-added products through collaborations between research institutions and industry players in both countries. The Critical Minerals Research Hub is and can further be leveraged to promote this sort of technology transfer and bolster capacity building initiatives. Concerns over Intellectual Property Rights can be covered within the ambit of the MoUs as has been the case in the 2020 MoU between the two countries.  

1. Strengthening Academic and Industry Collaborations: Expanding research partnerships and training programs to build a skilled workforce in mineral processing, fostering innovation in sustainable mining technologies, and leveraging existing partnerships between universities and industry stakeholders. Focusing research agendas on future technologies to cultivate an ecosystem that is more forward-looking and resilient. Setups similar to the Critical Minerals Research Partnership can be undertaken where project funding is provided for joint R&D. 

By leveraging strategic initiatives, technological partnerships, and trade frameworks, India and Australia can solidify their role in the global critical minerals supply chain, ensuring long-term economic and strategic benefits for both nations.  

Table 3: Mineral specific cooperation potential 

Source: Author’s compilation. 

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.

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. 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. Through robust policy coordination, targeted investments, and collaborative research initiatives, these two nations are uniquely positioned to lead the global transition to a secure and sustainable clean energy future. 

Annex: 

Table 4: Critical Minerals on India and Australia’s lists (Updated as of April 2025) 

Source: Critical Minerals at Geoscience Australia, 26 March 2025, https://www.ga.gov.au/scientific-topics/minerals/critical-minerals  

Note: The author would like to thank Dr Constantino Xavier, Senior Fellow, CSEP for his feedback.