Security Cooperation in the Indo-Pacific - Malabar Exercise - AUSMIN - Clean Energy Cooperation
Malabar Exercise
The Malabar naval exercise taking place off the coast of Sydney began on August 11th. The exercise is hosted by Australia and is composed of the four Quad countries — the US, Australia, Japan, and India.
Malabar began as a bilateral defence exercise in 1992 — between India and the US —and has significantly grown to include key Indo-Pacific actors.
The Malabar naval exercise — through amphibious operations, anti-submarine operations, fighter combat operations from aircraft carriers, and counter-piracy operations — aims to enhance coordination and synergy between the navies, and deepen their commitment to a rules-based international order and an inclusive Indo-Pacific.
This year, the exercise is being conducted in two phases. The first phase, the Harbour Phase, involves activities such as cross-deck visits and sports fixtures. The second — the Sea Phase — will include complex and high-intensity exercises in all three domains of warfare — anti-surface, anti-air, and anti-submarine exercises.
As part of a statement by Naval commanders representing the four countries, the US 7th Fleet Commander said that the exercises were not pointed at any country, and only improved the ability of the four forces to work with each other.
The exercise includes ships from all four nations and Australian F-35 fighter jets and P-8 surveillance aircraft, and submarines.
AUSMIN Joint Statement
The US and Australia released a joint statement following the conclusion of the 33rd Australia-United States Ministerial Consultations (AUSMIN). The Australian Minister for Foreign Affairs Penny Wong, Australian Deputy Prime Minister and the Australian Minister for Defence, Richard Marles, hosted the US Secretary of State Anthony Blinken and the US Secretary of Defense Lloyd Austin.
Among other important declarations and statements, the US and Australia expressed concerns about the People’s Republic China’s (PRC) maritime claims in the South China and East China seas. The statement extensively discusses defence and security cooperation, including undertaking ‘Enhanced Force Posture Cooperation’. The participants advanced key priorities, including:
Reaffirming their commitment to deliver the ambitious trajectory of Enhanced Force Posture Cooperation across land, maritime, and air domains, as well as the Combined Logistics, Sustainment, and Maintenance Enterprise.
Through Enhanced Air Cooperation, rotating U.S. Navy Maritime Patrol and Reconnaissance Aircraft to Australia to enhance regional maritime domain awareness, with a goal of inviting likeminded partners to participate.
Stating their intent to declare Enhanced Space Cooperation as a new Force Posture Initiative, which would enable increased space integration and cooperation under the U.S.-Australia Force Posture Agreement, as well as stating their intent to increase space integration and cooperation in existing operations and exercises.
The ministers discussed advancing regional security cooperation in the Indo-Pacific. They reaffirmed “their commitment to enhance interoperability with the militaries of the Pacific through a range of exercises”. In addition, they noted recent Pacific engagement:
The principals also welcomed Fiji, Indonesia, Papua New Guinea, and Tonga's participation in Exercise TALISMAN SABRE 2023 for the first time, as well as India, Singapore, Thailand, and the Philippines as inaugural observers.
The US and Australia also intend to “[explore] opportunities to further deepen cooperation with partners, including Japan, India, Indonesia, the Philippines, and the Republic of Korea, noting the dividend for security and stability in the Indo-Pacific.”
Australia-Japan Security Cooperation
In this vein, the recently concluded ‘Reciprocal Access Agreement’ between Canberra and Tokyo significantly enhances defence cooperation between the two countries. The agreement relaxes immigration control for troops in respective countries and simplifies procedures for transporting weapons and ammunition. Only the US has an agreement of this nature with Japan.
A Pentagon spokesperson said that the agreement between Japan and Australia “shows the desire for a free and open Indo-Pacific, and it’s clearly one that’s shared by our allies and partners”. Such agreements, the spokesperson added, would help enforce the international rule-based order in the region.
US-Japan-South Korea Trilateral Security Cooperation
The US-Japan-South Korea trilateral also shows signs of gaining strength. At a Camp David Summit in the US, political leaders from the three countries met to strengthen military and economic ties.
US National Security Adviser Jake Sullivan said that the three countries would “consult” each other in times of security crises. Other steps to enhance security cooperation include a multi-year military exercise plan, integration on ballistic missile defence, improved information sharing, crisis communication, and the policy coordination “that goes along with responding to contingencies in the Indo-Pacific.”
On whether this was a “NATO for the Pacific”, Sullivan added that “[the] partnership [was] not against anyone, it is for something. It is a vision of the Indo-Pacific that is free, open, secure, and prosperous.”
Other trilateral economic and energy security initiatives are on the cards in the near future.
Japanese Sumitomo Corp and Australian Liontown Resources to start a joint study to produce Lithium Hydroxide
On 7th August, Japanese Fortune 500 company Sumitomo Corp and Australian mining company Liontown Resources signed a basic agreement to collaborate to produce Lithium Hydroxide in Japan. Lithium Hydroxide is an inorganic compound that is a key raw material in the production of electric vehicle (EV) battery cathodes. The ‘Quad Statement of Principles on Clean Energy Supply Chains in the Indo-Pacific’ issued earlier this year mentions undertaking a feasibility study, research, and development of clean energy projects. This joint venture between Sumitomo and Liontown Resources is a move in that direction.
Japanese trading company Sumitomo has signed an agreement to jointly work with Australian lithium developer Liontown Resources to study lithium hydroxide production in Japan.
The move comes as several companies worldwide look to secure lithium, which is said to be a key metal in manufacturing electric vehicles (EVs) batteries.
Liontown is developing the Kathleen Valley lithium mine in Western Australia. The project is scheduled to start production of hard rock lithium concentrate in mid-2024.
Sumitomo said in a press statement: “Sumitomo Corporation and Liontown Resources will leverage their respective strengths to contribute to the stable supply of lithium and further contribute to the creation of a decarbonised society.”
Sumitomo spokesperson was cited by Reuters as saying that the two companies are planning to conduct a joint study over a period of two years to decide the scale of the lithium hydroxide production.
Located in an established mining region 60km north of Leinster and 680km northeast of Perth, the Kathleen Valley mine has a current mineral resource estimate of 156 million tonnes at 1.4% Li₂O and 130ppm Ta₂O₅.
In a strategic move aimed at tapping into the burgeoning demand for electric vehicle (EV) batteries and energy storage solutions, Japan’s Sumitomo Corp (8053.T) and Australian lithium developer Liontown Resources (LTR.AX) have announced their partnership to conduct a comprehensive study on producing lithium hydroxide within Japan’s borders.
The collaboration represents a significant stride in the global endeavour to ensure a steady supply of lithium, a critical component in the production of batteries for EVs and battery storage.
Liontown Resources is spearheading significant developments in the lithium sector, centred around its Kathleen Valley lithium mine located in Western Australia.
The company’s timeline is set for mid-2024 to initiate the production of hard rock lithium concentrate, a pivotal step towards bolstering global lithium supply.
Liontown has already forged notable partnerships with industry giants such as LG Energy Solutions (373220. KS), Tesla (TSLA.O), and Ford (F.N), underscoring its strategic positioning within the lithium market.
The collaboration between Sumitomo and Liontown aims to construct a robust supply chain encompassing the entire lifecycle of lithium production.
This process extends from mining and processing lithium concentrates in Australia to the creation of lithium hydroxide, ensuring a consistent and stable supply of the metal to Japan and global markets.