India, Australia deepen cooperation in electric vehicle sector

Australia and India are exploring ways to strengthen cooperation on electric vehicles, battery manufacturing, mineral processing and sourcing of essential minerals, according to Commerce Secretary Sunil Barthwal.

The announcement coincides with ongoing talks between the two countries aimed at transforming the interim free trade agreement into a comprehensive agreement.

Speaking at a symposium on vehicle electrification, Barthwal highlighted the potential for economic integration between the two countries in sectors including mineral extraction, battery production and automotive manufacturing.

He also mentioned that the Indian government has implemented a number of initiatives to support domestic production of electric vehicles (EVs) and strengthen the ecosystem that supports them, including the infrastructure required to charge them.

Australian High Commissioner to India, Philip Green OAM, highlighted that Australia has significant mineral and energy resources that could support India’s manufacturing initiatives.

As the world’s largest producer of lithium and second largest producer of cobalt, Australia is well placed to supply key minerals essential to clean energy technologies.

Green stressed the importance of a comprehensive free trade agreement that would facilitate India’s access to key mineral resources and Australian potential, which he said was crucial to India’s green transformation.

The trade secretary also cited ongoing cooperation with other countries and blocs, including Norway (a member of the European Free Trade Association) and the European Union, particularly in the renewable energy and technology sectors.

Barthwal highlighted the rapid growth in electric vehicle sales in India, pointing to significant opportunities for investors across the value chain, from electric vehicle manufacturing to battery production and charging infrastructure.

He noted that the government is focusing on the development of the entire ecosystem, including the extraction of mineral resources, and is considering introducing incentives to address sector-specific issues.

The Indian government has already rolled out schemes like Faster Adoption & Manufacturing of Electric Vehicles (FAME) and Production Linked Incentive Scheme to boost the EV sector. Barthwal noted that around 1.7 million EVs have been sold in India so far.

The Commerce Secretary concluded his speech by estimating the potential market opportunity in the electric vehicle and related sectors at close to USD 500 billion, highlighting the government’s efforts to create a conducive ecosystem for investments through collaboration with state governments and initiatives aimed at facilitating ease of doing business.