Key Points

Speaking at the 6th International Energy Conference and Exhibition in New Delhi, Singhvi said, "The government of India has recently signed a memorandum of understanding with Argentina for critical minerals. It also explores other countries."

Currently, India heavily relies on China for critical mineral imports, particularly for lithium, cobalt, nickel, and graphite. However, the government is working to reduce this dependence through policies such as the National Critical Mineral Mission (NCMM) and amendments to the Mines and Minerals (Development and Regulation) Act, 2023.

"For rare earths, we may have resources, but not the kind of processing capabilities that turn ore into usable industrial inputs. And this dependency exposes us not only to price volatility but also to the vulnerabilities of geopolitics and supply concentrations." Said Singhvi

This strategy aims to enhance domestic capacity, strengthen supply chain resilience, and facilitate the acquisition of overseas mineral assets to secure India's future mineral supply. Currently, India is 100% dependent on imports for lithium and cobalt, and has a high reliance on imports for nickel and copper.

China is a major supplier of these critical minerals to India, controlling a large portion of the global market. India is looking at Argentina, Australia and many more countries to meet its local consumption, Singhvi said.

"India has already entered into agreements in Argentina for lithium exploration. Discussions are also advancing with some other countries, and these partnerships are not mere commercial transactions. They represent strategic hazards diversifying our supply bases and insulating us from shocks.' Noted Sinhvi

The Australian and Indian governments have been working together for three years on a project to meet the needs of India, Sanjiva de Silva, Counsellor (Energy, Resources and Climate Change), Australian High Commission, told ANI on the sidelines of the energy summit at New Delhi.

A few years back, we signed an interim trade agreement called the Economic Trade Agreement with India.

We are now working very hard towards a comprehensive economic cooperation agreement," he said

Other people can tell about where the negotiations are exactly now, he said, adding, "but my colleagues at the Department of Foreign Affairs and Trade are working very hard with the Ministry of Commerce counterparts to try and land this FTA."

The problem is not the tariff in this sector, actually. It's a highly competitive sector where China, Japan and Korea realised years ago that they would need this commodity, so they came into the Australian markets and invested, he said.

"We would like India to do the same. We are encouraging the Indian government and the Indian private sector at every level of the Indian sector to think ahead and secure the critical minerals they need by sort of entering into our economy," he said.

- ANI