May 30, 2024

Australia and the European Union have struck an agreement to boost cooperation and investment in critical minerals, part of a drive by Western nations to loosen China’s grip on supply chains of materials essential to high-tech and green manufacturing.

Ministers in Canberra and Brussels signed a memorandum of understanding on Tuesday, which will be followed by the joint development of “concrete actions” over the next six months to improve collaboration on critical minerals projects.

“Australia is a like-minded partner and a global leader when it comes to critical raw materials,” EU Commissioner for Trade Valdis Dombrovskis said in a statement. “This partnership marks a major step forward in our efforts to secure a more sustainable supply of critical raw materials for the EU, whilst fostering investment in Australia.”

The US and its allies have been working in recent years to establish alternative sources of critical minerals such as lithium, cobalt and nickel, which are used in the manufacturing of equipment including computer chips, solar panels and military hardware. China currently controls much of the supply, leaving the US potentially exposed to export restrictions given intensifying strategic competition between Washington and Beijing.

Access to critical materials has become a serious concern for the EU due to the potential for China to “weaponise” its dominance of the sector.

Australia has vast, largely untapped deposits of several critical minerals and has been attempting to build up its domestic industry through financing vehicles and tax incentives, including new measures announced in its May budget.

Under the MoU signed on Tuesday, Australia and the EU will look to boost investment in critical mineral

Source: miningweekly
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.