Australia Seeks a Diversified Market for Lithium Export
#GS01
Context:
- Australia would rather have a diversified market for its lithium exports — and this includes India — than they all be cornered by the U.S., Don Farrell, Australia’s Minister for Trade and Tourism said in a media interaction. Lithium is a critical metal necessary to make batteries for electric vehicles.
Points to Ponder:
- Lithium is an essential element necessary to make battery components for electric vehicles.
- The European Union and South Korea have slammed the American IRA, claiming that it makes electric cars imported into the US from their respective areas uncompetitive.
- One of the Act’s provisions mandated that at least 40% of all “critical minerals” (including lithium) used in the manufacture of electric batteries originate from nations with which the United States has a Free Trade Agreement.
- Australia is the world’s largest lithium producer, with the majority of its output moving to China, which controls the Lithium Ion battery manufacturing market.
- India Australia recently inked a $ 3 million agreement to explore the possibilities of Indian investments in two lithium and three cobalt-prospecting projects in Australia.
- Lithium Reserves are particularly found rich in South America, especially in the countries of Bolivia, Chile, and Argentina commonly referred to as the “Lithium Triangle”.
