India & Australia are joining their hands together in a deal which could see Australian lithium used in the first Indian refinery to produce battery materials for electric cars.
India & Australia join hands for Lithium deal for EVs battery demand
An Australian company, Neometals teamed up with the Manikaran Power Ltd to jointly fund a study into the refinery, with an interest in the Mt Marion lithium mine near Kalgoorlie in Western Australia.
The study duration is expected between 18-and-24 months and results in the final investment decision in the first half of the year 2021.
It is the most important and first business deal between an Australian and an Indian company. Earlier the Australian Lithium projects have been made with the Chinese and American companies.
India & Australia lithium project-50/50 joint venture
If this project ( India/Australia lithium project ) starts then it will be on a 50/50 joint venture basis.
The Australian company must also provide its skills in early-stage processing of lithium ore, known as spodumene and mining.
The Indian company will lead at least for the half of the capital obtain and also secures the regulatory approvals, subsidies of the Indian government.
Both companies share common belief of strong Lithium demand
The Australian company chief executive, Chris Reed, said that both the companies shares common belief that strong demand for lithium in the future which is used for electrifying the transportation system and a shortage of renewable energy.
Australian company chief executive, Chris Reed
According to Forbes Chris Reed, “Given India’s growth projections for electric vehicles and lithium battery manufacturing capacity, this opportunity to partner India’s first domestic lithium development and potentially realize value from downstream processing our offtake from Mt Marion is compelling,”
“Manikaran has a significant on-the-ground presence and commercial standing in India to assist with site location, regulations, access to finance, utilities and (chemical) reagents, and is part of a group of companies with broad competencies that enhance their value proposition for partners.”
Manikaran third biggest company in India
Manikaran is the third biggest power trading company and one of the 11 companies under the Manikaran Group.
It is a Trading Member of Indian Energy Exchange (IEX) and Power Exchange India Ltd (PXIL). MPL is also a Category-I Inter State Trading Licensee.
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