Madeleine King on selling lithium for Indian EVs

Australia will ship more coal, gas and critical minerals to India under government plans to expand more than $24 billion in annual exports when Prime Minister Anthony Albanese visits three Indian cities this week after years of friction with China over trade and security.

The stronger strategic relationship is tipped to lead to more investment in Australian resources including lithium at a time when countries are racing to secure supplies to manufacture batteries and electric vehicles – a key objective for India this decade.

But the talks will also canvass ways to boost Australian supplies of fossil fuels when Indian demand for coal is forecast to grow by seven per cent across its power stations by 2025 and by 20 per cent at its steelmakers and other industrial users over the same time.

Resources Minister Madeleine King, who will join the prime minister on the trip, said the Indian government was showing “great interest” in Australian critical minerals as part of its plan to lift the share of renewable energy in its economy.

King added, however, that Australians should accept that India would need secure supplies of coal and gas for the long term despite calls from environmental groups to shut down those exports in order to reduce greenhouse gas emissions.

“India is one of the countries that need natural resources for its energy security and they need that to ensure that their community can have the same things we have, which is an entitlement to power, safe cooking fuels and all the things we take for granted and don’t much think about,” she said.

“Australia’s natural resources can contribute significantly to them having a better lifestyle that seems very natural to us.”

One of the first meetings during the visit will be at the fourth test in Ahmedabad, where Albanese will join Indian counterpart Narendra Modi for a short time at the cricket, but the agenda is dominated by trade and security and will give business chiefs an opportunity to speak to both leaders.

A business delegation at the meetings will include BHP Australia president Geraldine Slattery, Fortescue Metals executive chairman Andrew Forrest and Rio Tinto Australia chief executive Kellie Parker, highlighting the Indian interest in critical minerals and iron ore exports.

Other chief executives on the delegation – which will meet Albanese in Mumbai and Delhi – include Shemara Wikramanayake from Macquarie Group, Alan Joyce from Qantas and Rob Scott from Wesfarmers.