The European Union plans large-scale investment in Australia's critical minerals sector. This was announced on 27 October 2026 by the EU Ambassador to Australia, Lawrence Meredith, at a conference in Sydney.
According to Meredith, Brussels intends to "invest massively" in critical minerals in order to diversify supplies and move away from dependence on China. "Since we want to diversify away from China, Australia should become one of the most likely partners," the diplomat emphasised.
The investment is tied to the free trade agreement between the EU and Australia. Negotiations are planned to be completed in early 2027, after which the 5,5 percent tariff on critical minerals will be abolished.
In parallel, the parties are close to signing a memorandum with the European Investment Bank, which will become a mechanism for financing projects. Within the framework of the broader competitiveness fund for 2028–2034, the EU is allocating up to 10 billion euros specifically for critical raw materials.
The priority is gallium, antimony and rare earth elements, which Australia is including in its strategic reserve system. These materials are important for defence, renewable energy and high technology.
Australia, for its part, is updating its own critical minerals strategy, placing emphasis on processing and refining within the country rather than only on extraction. Minister for Resources Madeleine King confirmed readiness for partnership with the EU.
Australia is one of several critical minerals "superpowers", along with Brazil, South Africa and Canada, where the EU is also looking for diversification. The agreement with Canberra fits into broader defence and technological cooperation, including the ReArm Europe initiative worth 800 billion euros by 2030.
