The global race for critical minerals is intensifying, and the urgency of the challenge was laid bare at a recent Australia-India Critical Minerals Roundtable hosted by the Consulate General of India in Sydney (CGI Sydney). The event brought together industry leaders, government officials, and researchers to address key challenges and shape practical solutions. Participants confronted the complexities of the fractured global critical minerals market. A mining sector industry leader described the situation as a national crisis, citing the daily collapse of the critical minerals extraction industry. No amount of rhetoric - whether investment, policy reform, or diplomatic engagement - can alter this stark reality.
China's dominance in processing has forced the US, EU, and allied nations to scramble for alternatives - investing in domestic supply, forging new trade agreements, and pursuing friendshoring strategies. However, even with strategic alliances in place, launching new projects remains painfully slow, hampered by issues such as financial viability, permitting delays, and infrastructure deficits. The message from the roundtable was unequivocal: securing access to critical minerals is a geopolitical and economic minefield, fraught with complexity and without easy solutions.
Critical minerals are vital strategic and economic assets. Supply chains are fragile, monopolies dominate markets, and misaligned policies impede progress. Australia possesses the resources; India has the demand. Yet progress remains slow. Unlike mature commodities, critical minerals are embedded in complex value chains, subject to concentrated market power and distortionary policies. Factors such as technological capability, on-site processing viability, risk tolerance, and access to capital determine the sector's long-term prospects.
The concept of ‘criticality' is inherently context-specific and dynamic; hence, each country identifies its own list of critical minerals based on industrial priorities and energy needs. Many critical minerals are mined both as primary products and as by-products or trace elements during the extraction of other minerals. Extraction, processing, and refining of these minerals - which are often costly and environmentally damaging - have limited access in many regions, contributing to their geographical concentration.
China holds a dominant position across the value chain of critical minerals - mining, processing, and manufacturing. It controls 85-90% of global rare earth element (REE) refining from mine to metal and processes 68% of the world's cobalt, 65% of nickel, and 60% of lithium used in electric vehicle (EV) batteries. Furthermore, China manufactures 75% of the world's batteries and the majority of EVs.
India's Critical Minerals Focus
India's critical minerals policy is guided by two main objectives: enhancing domestic production and securing international supply chains. To boost domestic output, the government amended the Mines and Minerals (Development and Regulation) Act, enabling increased private sector participation in the exploration and mining of strategic minerals. Critical mineral blocks are now being auctioned to both state-owned and private entities, supported by initiatives such as the National Mineral Exploration Trust (NMET) and reduced royalty rates to incentivise exploration.
Internationally, India is actively working to secure mineral supplies through Khanij Bidesh India Ltd. (KABIL), which engages in overseas mineral asset acquisition. India's participation in the Minerals Security Partnership (MSP) - alongside Australia - underscores its commitment to establishing resilient and diversified supply chains. The policy aims to mitigate potential vulnerabilities while guiding resource allocation and development priorities.
India ranks fourth globally in installed renewable energy capacity and aims to increase non-fossil fuel-based electric power capacity to 50% by 2030, targeting net-zero emissions by 2070. These ambitions rely heavily on a reliable, sustainable supply of critical minerals.
In November 2022, the Ministry of Mines established a seven-member committee to identify India's critical minerals. This committee followed a three-stage assessment:
- Global strategy review: Analysed critical minerals lists from countries such as the US, Australia, Canada, and South Korea, as well as domestic research from the Centre for Social and Economic Progress (CSEP) and the Council on Energy, Environment and Water (CEEW).
- Interministerial consultation: Consulted key sectors including power, renewable energy, atomic energy, and electronics.
- Criticality Index development: Adapted the EU methodology, assessing both economic importance and supply risk. Notably, minerals such as limestone, iron ore, and bauxite were also deemed critical.
The assessment identified 30 critical minerals based on economic significance, supply risks, and potential for domestic production. These include antimony, cobalt, copper, lithium, nickel, and REEs, among others. Demand is expected to more than double by 2030.
The committee recommended establishing a Centre of Excellence for Critical Minerals (CECM) under the Ministry of Mines to update the critical minerals list regularly and execute value chain development strategies. In the 2024 Budget, Finance Minister Nirmala Sitharaman announced the National Critical Minerals Mission (NCMM) - a A$7 billion initiative to secure resources vital to the energy transition, technology development, and economic growth.
NCMM focuses on:
- Boosting domestic production: Exploring and mining lithium, cobalt, nickel, and REEs, with 1,200 projects and over 100 mineral block auctions by 2031.
- Overseas acquisitions and recycling: Facilitating mineral asset acquisition and promoting recycling from industrial waste.
- Regulatory reforms: Fast-tracking approvals, eliminating import duties, and establishing processing parks and a Centre of Excellence.
- R&D and innovation: Investing in advanced processing and recycling technologies through partnerships with CSIR, IITs, and IISc.
- International partnerships: Through the Quad (US, Japan, Australia), India aims to build guiding principles for clean energy supply chains in the Indo-Pacific. In June 2023, India joined the US-led MSP, an initiative promoting sustainable mining, diversified sourcing, and resilience against shocks such as COVID-19 or geopolitical tensions like the Russia–Ukraine conflict.
India's inclusion in MSP reflects its vast market potential, increasing role in climate governance, and Global South representation. The partnership offers India access to vital resources, technologies, and investments, strengthening industrial growth and renewable energy goals. In 2021, India, Japan, and Australia launched the Supply Chain Resilience Initiative to reduce reliance on China. India is also deepening bilateral ties with resource-rich nations such as Argentina and Chile.
In January 2024, KABIL signed a US$24 million agreement with Argentina to explore and develop five lithium blocks in Catamarca province - reinforcing India's strategy to secure critical resources in Latin America.
Australia's Critical Minerals Landscape
Australia's mining sector is among the most stable globally, supported by a robust regulatory system, deep industry expertise, and a commitment to sustainable practices. With vast reserves of lithium, cobalt, and REEs, Australia is a global leader in resource extraction. Strong governance, advanced infrastructure, and high technological capabilities ensure operational efficiency and security.
The Australian Government's Critical Minerals List identifies 31 minerals essential to modern economies and at risk of supply disruption. First published in 2019 with 24 minerals, it expanded to 26 in 2022 and was further updated in 2023-24 with the addition of arsenic, fluorine, molybdenum, selenium, tellurium, and nickel (February 2024). Nickel is critical for clean energy and steel production.
Australia also maintains a Strategic Materials List, which includes aluminium, copper, phosphorus, tin, and zinc. While not eligible for critical mineral financing, these materials are vital for net-zero transitions.
Key incentives and financing:
- A$4 billion Critical Minerals Facility
- A$500 million under the Northern Australia Infrastructure Facility (NT, QLD, WA)
- Production tax incentive: 10% of eligible processing and refining costs, valid for up to 10 years (2027–28 to 2039–40) for projects reaching investment decisions by 2030
- A$1 billion from the National Reconstruction Fund for value addition
- A$10 million for pre-feasibility studies via the Critical Minerals National Productivity Initiative
- Clean Energy Finance Corporation support for net-zero aligned projects
Production Leadership (2022):
- First in lithium (52% of global output)
- Top 5 in cobalt (3%), manganese ore (10%), REEs (5%), rutile (27%), tantalum (4%), zircon (25%)
The Critical Minerals Strategy 2023-2030 aims to grow the sector, support global clean energy supply chains, and deepen international ties.
Australia-India Critical Minerals Collaboration
Australia and India share a deep resources partnership encompassing bulk commodities, energy minerals, and mining equipment, technology, and services (METS). The 2019 Australian Critical Minerals Strategy and the 2020 Comprehensive Strategic Partnership (CSP), including an MoU on critical minerals, laid the groundwork for expanded trade, investment, and R&D.
The India-Australia Joint Working Group on Critical Minerals, established in 2020, formalised cooperation on supply chains and research. The Australia-India Economic Cooperation and Trade Agreement (AI-ECTA), effective since December 2022, removed tariffs on Australian critical minerals, easing Indian access.
Ongoing initiatives include:
- Research and investment partnerships to enhance supply chains and technology development
- METS Market Access Programme to assist Australian companies entering the Indian market
- Global Mining Challenge – India, connecting Indian miners with Australian innovations
India's KABIL, a joint venture involving NALCO, HCL, and MECL, is actively partnering with Australia on cobalt and lithium projects. The bilateral partnership focuses on:
- Securing supplies of critical minerals and REEs
- Co-investing in mining and processing ventures
- Collaborating on mineral exploration, refining, and recycling
- Joint research and environmental management to ensure long-term cooperation
Way Forward
Recommendations for India-Australia Critical Minerals Collaboration
- Adopt an integrated value chain strategy
- Build strong international and bilateral partnerships
- Mobilise diverse financing mechanisms and de-risk investments
- Define India's competitive role in global supply chains
- Strengthen ESG compliance and supply chain resilience
- Build public-private hybrid models for long-term partnerships
(Natasha Jha Bhaskar is the Executive Director, and Dipen Rughani is the Founder and CEO of Newland Global Group, Australia's leading advisory firm focused on strengthening trade and investment ties between India and Australia.)
Disclaimer: These are the personal opinions of the author
