New Delhi, Jul 4 (PTI) India and Australia on Monday vowed to strengthen cooperation in joint projects involving rare earth minerals like lithium and cobalt as the two sides held wide-ranging talks to ramp up ties in the sector.

India has been looking at boosting cooperation with Australia in critical minerals with that country having a significant source of lithium, cobalt and vanadium, considered crucial for the manufacturing of critical electronic components.

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Coal and Mines Minister Pralhad Joshi and Australia's Minister for Resources Madeleine King deliberated on ways to boost cooperation in the rare earth minerals sector, in sync with a decision taken during a virtual summit between the prime ministers of the two countries in March.

Joshi is currently visiting Australia.

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At the meeting, King confirmed that Australia would commit 5.8 million Australian dollars (USD 3.98 million) to the three-year India-Australia Critical Minerals Investment Partnership, according to a statement issued by the Australian government.

Following the talks with Joshi, King said Australia and India are natural partners on critical minerals and the two countries share a commitment to lowering emissions and boosting the use of renewable energy.

"Australia is a trusted supplier of resources and energy to India, and we can build on the success of those established supply chains as Australia's critical minerals sector grows," she said.

"Australia has the resources to help India fulfil its ambitions to lower emissions and meet the growing demand for critical minerals to help India's space and defence industries, and the manufacture of solar panels, batteries and electric vehicles," King said.

The minister said Australia welcomes India's strong interest and support for a bilateral partnership, which will help advance critical minerals projects in Australia while diversifying global supply chains.

"We have recently signed an MoU between Khanij Bidesh India Limited and the Critical Minerals Facilitation Office (CMFO), Australia, which aims to ensure reliable supplies of critical and strategic minerals to India," Joshi said, according to the statement.

He said the MoU includes joint due diligence in the lithium and cobalt mineral assets of Australia.

"Both CMFO and the Indian JV KABIL will jointly fund the due diligence process with an initial total amount of USD 6 million. Once the due diligence is completed and potential projects are identified, we will explore investment opportunities through different methods as envisaged in the MoU," he said.

Joshi said India is among the fastest-growing economies in the world and there is a huge scope for collaboration in the mineral sector.

"Technology transfer, knowledge-sharing and investment in critical minerals like lithium and cobalt are strategic to achieving clean energy ambitions. The future looks promising for India and Australia," the minister said.

Australia hosts vast reserves of critical minerals such as lithium and cobalt, which are crucial for clean energy technologies such as batteries and electric vehicles as well as mobile phones and computers.

Following the talks, King and Joshi toured the Tianqi Lithium Refinery at Kwinana.

"Australia is the world's largest exporter of lithium and export opportunities are forecast to keep growing as global demand continues for electric vehicles and clean energy technology, and as more projects and refineries come on line in Australia," King said.

The statement said the Australian government has a long-standing commitment to building a stronger relationship with India.

"Australia has a reputation as a stable and reliable supplier of resources and energy, and Australian critical minerals will help both Australian and international partners to decarbonise their economies and lower emissions," King said.

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