- Oct 19, 2022
A Possible Collaboration between Australia and India for Lithium Ion Batteries
Australia is looking to expand its presence in the electric vehicle market by teaming up with India for lithium-ion battery production. A few big Indian auto companies have been invited to explore mining opportunities in Australia, which aligns with India's growth projection for EV sales until 2030.
The government has set a pretty ambitious goal of having 30% of private cars, 70% of commercial vehicles, 40% of buses, and 80% of two and three-wheelers be EVs by 2030, which amounts to having eight crores EVs on the road.
Some Indian auto companies have been invited to explore lithium mining in Australia. If this materializes, Australia will benefit from increased demand for its product. The US sources lithium from Australia under their free trade agreement (FTA). Other countries collaborating with India will help give its product a further boost.
How is it helping in developing a supply chain for both countries?
Australia has extensive lithium reserves, a key raw material for producing lithium-ion batteries. The country is looking to collaborate with India to develop a supply chain for lithium-ion batteries.
There are several benefits for India in collaborating with Australia on this initiative:
1. It would provide a secure and reliable source of lithium for the Indian market.
2. It would help build India's capabilities in producing lithium-ion batteries and Lithium battery manufacturer. This would create new employment and business opportunities in India.
3. It would contribute to developing a clean and sustainable energy system in India, as lithium-ion batteries are an important part of the global transition to renewable energy.
Other Possible collaborations:
India's EV market is about to boost from a new factory producing batteries for electric vehicles. The factory, which is being set up by collaboration between India and Australia, will lower the production cost of batteries and attract companies like Tesla. The project will also help the country meet its global commitments to reduce carbon emissions and promote the use of clean energy.
l India and Australia recently signed the India-Australia Economic Cooperation and Trade Agreement (IAECTA), which aims to double trade between the two nations and create one million jobs.
l In addition, US Commerce Secretary Wilbur Ross is expected to visit India later this year to explore opportunities in the semiconductor sector.
Overall, this is great news for lithium battery manufacturers in both countries.India is home to some of the world's leading Lithium battery pack supplier, and this collaboration will help ensure that Australia and India have access to the latest technology and best practices.