Australia and India agreed on Monday to strengthen their cooperation in developing critical metal projects and supply chains, according to Australia’s resources minister.

Demand for essential metals such as lithium and cobalt has risen in recent years owing to their use in electric cars, as part of a worldwide drive toward greener energy sources to combat climate change.

At the same time, nations such as the United States, Australia, and India are pushing for the development of new sources of essential minerals to undermine China’s dominance in those supply chains.

Minister Madeleine King announced a three-year investment collaboration of A$5.8 million ($3.98 million) while signing an agreement between critical minerals business Khanij Bidesh India Ltd and the Critical Minerals Facilitation Office of Australia (CMFO).

With an initial investment of $6 million, the Indian business and CMFO will finance a due diligence investigation of Australia’s lithium and cobalt mining deposits.

“Once the due diligence is completed and potential projects are identified, we will explore investment opportunities through different methods as envisaged in the MoU (memorandum of understanding),” said Minister King.

Source: Reuters

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