Australia and EU forge strategic alliance on critical minerals for net zero transition

Australia and the European Union (EU) have agreed to work more closely to strengthen the supply of critical minerals, which they see as key to achieving the transition to net zero.

A memorandum of understanding was signed by leading Australian government and EU representatives just days after the EU’s new Critical Raw Materials Act (CRMA) came into effect in Ireland.

The CRMA was created to ensure EU access to a secure and sustainable supply of critical raw materials, enabling Europe to meet its 2030 climate and digital objectives.

Europe currently relies heavily on imports, often from a single third country, and recent crises have underlined EU strategic dependencies.

Deeper links

Federal Minister for Resources and Northern Australia Madeleine King said the partnership provides a platform for deeper links between Australia and the EU’s critical and strategic materials supply chains, greater science, technology and innovation collaboration, as well as the development of ESG standards.

“Australia has the critical minerals, well-established global supply chains and high ESG standards that support the development of our critical minerals sector,” she said.

“These advantages will be crucial to help develop and grow the technologies that will help the world to lower emissions and to help Australia and our export partners achieve our climate commitments.”

She added that Australia’s critical minerals strategy aims to establish the nation as a clean energy superpower by 2030.

Renewable energy potential

Senator and Minister for Trade and Tourism Don Farrell said, “Australia has some of the largest deposits of critical minerals on earth – minerals that are necessary parts of everything from electric vehicles to wind turbines.”

“Our partnership will encourage investment from the EU into Australian renewable energy projects, including the local manufacturing industry boosted by the Albanese Labor government’s $22.7 billion Future Made in Australia package.”

“Investment from our international partners is vital to achieving Australia’s full potential as a renewable energy superpower – and helps create more secure, well-paid jobs for Australians.”