Australia and the European Union will look to forge new critical minerals links under a new partnership inked by Federal Trade and Resources Ministers on Tuesday hoped to open the door to new investment in local mining and energy projects.
The agreement signed in Canberra comes right after the EU has implemented its Critical Raw Materials Act, which is geared up to securing new imports of lithium, nickel, copper, graphite and rare earths.
The Federal Government has just earmarked $17.6 billion in production tax credits in a bid to bring new refining projects on stream when they kick in later this decade, and $22.7b more on Future Made in Australia.
Federal Resources Minister Madeleine King and Trade Minister Don Farrell signed the memorandum of understanding with the EU’s executive vice-president and commissioner for trade Valdis Dombrovskis, and commissioner for internal market, Thierry Breton, on Tuesday.
While specifics of the partnership are to be developed over the coming six months, collaboration through joint ventures, trade and research is on the cards.
The pair will both also push the development of environmental, social and governance standards, an area Resources Minister Madeleine King has driven as a key area of importance to protect Australia’s mining industry from international competition.
“Australia has the critical minerals, well established global supply chains and high environmental and social governance standards that support the development of our critical minerals sector,” she said.
“Those advantages will be crucial to help develop and grow the low-emissions technologies that will help the world to lower emissions and to help Australia and our export partners achieve our climate commitments.”
Trade Minister Don Farrell said the partnership would encourage investment from the EU “into Australian renewable energy projects”
“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,” Senator Farrell said.
“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”.
From the EU’s side the partnership is based on “mutual benefit” to diversify its raw materials supply for the green energy transition whilst also “contributing” to the development of Australia’s critical minerals sector.