EU prepares multibillion-dollar investment in Australia's critical minerals sector

Lawrence Meredith, the EU’s ambassador to Australia, announced that the European Union is gearing up to pour substantial investment into Australia’s critical minerals sector as part of a broader effort to lessen reliance on China. The free-trade agreement concluded in March eliminates tariffs on most goods and will drop a 5.5% duty on critical minerals once both parties sign and ratify it, likely early next year. Concurrently, negotiations are advanced for a memorandum of understanding with the European Investment Bank, which would serve as the EU’s financing conduit.

Within the EU’s €409 billion competitiveness fund, up to €10 billion is allocated for critical raw materials, with plans to fund not only extraction but also processing and refining. Australia intends to refresh its critical minerals strategy to emphasize downstream activities, focusing on gallium, antimony and rare earths for its strategic reserve. Faster project development by Australian firms could accelerate the investment flow, while the partnership also supports broader security and defence cooperation, including the EU’s €800 billion ReArm Europe programme and Australia’s upcoming participation in Horizon Europe.