Australia is seeking new investment and economic relations – the most important partner so far has been China.
Australia wants to deepen its trade relations with India and supply the subcontinent with critical minerals needed for climate-friendly technologies such as electric mobility. The announcement was made by Australian Prime Minister Anthony Albanese, who travels to India on Wednesday for a four-day state visit. He will be accompanied by Trade Minister Don Farrell, Resources Minister Madeleine King, and business representatives from the mining sector, among others. During the visit, Indian mining company KABIL is expected to announce an investment in Australia’s rare earth sector, the Hindustan Times reports.
To date, China has been Australia’s largest trading partner, but Albanese’s government is seeking to diversify investment and trade ties. In recent years, diplomatic relations between the two countries have been strained. Chinese investment in rare earth company Northern Minerals was recently limited.
India is Australia’s sixth-largest trading partner, with a trade agreement signed at the end of 2022 that includes duty-free treatment for currently 85 percent of Australia’s goods exports. The two countries also cooperate under the Quad Group. The alliance, which also includes the United States and Japan, says it is committed to a “free and open Indo-Pacific. Its goals include a supply chain for rare earths that is more independent of China. Australia, as the largest producer of critical raw materials outside the People’s Republic, has an important role to play here.
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