EU seeks more investment in Australia’s critical minerals
EU targets Australia's critical minerals to diversify supply chain
The European Union seeks easier foreign investment in Australia, aiming to diversify its critical minerals supply chain, the EU ambassador in Canberra stated on Wednesday.
Ambassador Gabriele Visentin highlighted EU investment in Australia is already significant and the bloc wants to expand this, particularly in critical raw materials like lithium, cobalt, and nickel.
Australia’s abundance in essential minerals for defence and clean energy transition makes it a key potential source for allies aiming to reduce reliance on China for these supplies.
Visentin, speaking at the Minerals Week conference in Canberra, expressed the EU’s desire to invest more in like-minded partners. He emphasised the need for a conducive environment in Australia to attract further foreign direct investment.
In May, both sides signed a memorandum of understanding to enhance cooperation on critical and strategic minerals. This move is part of the EU’s strategy to diversify suppliers away from China and Russia and to shift its economy towards lower carbon emissions.
Negotiations for a free trade agreement between Australia and the EU have been ongoing since 2018, with a deal still out of reach. Talks stalled last October after Australia rejected a proposal, citing insufficient access to European agriculture markets for Australian exports.
What Other Media Are Saying
- EU, Australia sign critical minerals pact to diversify supply chains. This pact aims to boost cooperation and investment in critical minerals, crucial for high-tech and green manufacturing, to loosen China’s grip on supply chains and secure a sustainable supply for the EU. (read more)
- Baker McKenzie InsightPlus provides an overview of Australia’s foreign investment reforms, highlighting streamlined processes for low-risk proposals and intensified scrutiny for high-risk transactions. (read more)
- A rock and a hard place: building critical mineral resilience explores the UK’s vulnerability to critical mineral supply chains, highlighting the need for strategic resilience and sustainable exploitation of minerals like lithium. (read more)
Frequently Asked Questions
Here are some common questions asked about this news
What does the EU want from Australia regarding investment?
The EU wants Australia to make foreign investment easier, particularly in critical minerals.
Why is the EU interested in Australia’s critical minerals?
The EU aims to diversify its supply chain for critical minerals like lithium, cobalt, and nickel.
How does the EU view its investment in Australia?
EU investment in Australia is already ‘huge’ and the bloc is eager to increase it.
What was signed between the EU and Australia in May?
They signed a memorandum of understanding to cooperate more closely on critical and strategic minerals.
What has been a stumbling block in the EU-Australia free trade agreement negotiations?
Talks stalled after Australia rejected a deal that didn’t sufficiently open up European agriculture markets.
