India in Talks with Australia for Rare Earth Partnerships Amid China Curbs

As India intensifies its efforts to diversify rare earth elements imports and reduce reliance on China, Australia’s New South Wales (NSW) is emerging as a potential partner in the supply of critical elements essential for the clean energy and electric vehicle transition.

Speaking to Autocar Professional at the India Energy Storage Week, 2025, Malini Dutt, Trade and Investment Commissioner, India, Investment NSW, confirmed that the Australian state is in early-stage discussions with Indian stakeholders, including project owners and supply chain players.

“We are already talking to a number of players because our region, New South Wales, for example, has a lot of rare earth elements,” said Dutt. “There are a couple of players and project asset owners who are looking at partnerships with countries like India to explore supply agreements. We've got some interest as well, both from the private sector and government.”

Her comments come in the wake of the latest Quad meeting on July 1 between India, Australia, Japan, and the United States, where critical elements were on the agenda. This development coincides with Prime Minister Narendra Modi’s recent visit to Argentina, another rare earth-rich country alongside China and Australia, where he held discussions with President Javier Milei on strategic resources.

India has been seeking alternatives to rare earth magnets and other critical raw materials, particularly those used in battery and auto manufacturing, due to increasing curbs by China. “These elements are very scarce right now in the market, especially in the auto industry,” Dutt said.

In response to a question about the pace of India-Australia collaboration on critical elements, Dutt said progress is being made and announcements could follow. “I think you'll hear some announcements going forward,” she said.

She pointed to growing engagement between the two countries. “Already a number of visits have taken place,” she noted, highlighting the International Mining and Resources Conference (IMARC) held annually in Sydney, where Indian delegations have participated. “It’s going to take place again this year in October.”

On the resource potential of NSW, she clarified that while lithium mining is more prevalent in Western Australia, NSW offers a wide array of other minerals. “We don’t do lithium much — that’s more of Western Australia. New South Wales has copper, cobalt, nickel, rare earths, tungsten, silver. Rare earths are a big thing for us.”

Bilateral coordination is also being handled at a diplomatic level. “Given that both countries have signed the FTA agreement, Australia has become a very friendly and strategic partner for India," she added.

Dutt also noted that Australia is opening up opportunities for international collaboration in early-stage exploration. “There are blocks available, so there is an opportunity for India to take an early-stage block and have some tie-ups with a few companies,” she said. However, she cautioned that no timeline has been set. “We are just having initial conversations. A lot has to be determined on the way forward.”