The European Union (EU) and Australia have signed a Memorandum of Understanding (MoU) to foster bilateral cooperation on sustainable critical and strategic minerals. The agreement was signed by Executive Vice-President and Commissioner for Trade Valdis Dombrovskis and Commissioner for Internal Market Thierry Breton on behalf of the EU, and by Australia’s Minister for Resources and Northern Australia Madeleine King and Minister for Trade and Tourism Don Farrell.
This partnership is designed to achieve shared goals and mutual benefits, including diversifying the EU’s sources of essential materials for green and digital transitions and supporting the growth of Australia’s critical minerals sector. The agreement encompasses the entire value chain for critical and strategic minerals, from exploration and extraction to processing, refining, recycling and the management of extractive waste.
The EU-Australia partnership highlights their shared commitment to environmental sustainability and aims to develop joint projects across the value chain, both within their regions and in other countries where they have common interests. The focus is on minimizing environmental impacts, benefiting local communities, and advancing innovative and digital technologies related to mining and critical minerals projects.
The MoU seeks to strengthen collaboration between the EU and Australia in integrating sustainable raw materials value chains, advancing research and innovation, and promoting high standards in environmental, social and governance (ESG) practices through improved policy alignment.
With the signing of this MoU, the EU and Australia are set to create secure and sustainable value chains for critical and strategic minerals. These value chains will be crucial for supporting clean energy, digital transitions, and key industrial sectors such as defense and aerospace.
This partnership reflects the EU’s broader strategy of using free trade agreements to enhance trade and investment links, diversify supply chains, and boost economic resilience, particularly in the supply of critical raw materials. The EU has trade agreements with 74 countries, including recent ones with the United Kingdom, New Zealand and Chile, focusing on energy and raw materials. Negotiations for an EU-Australia free trade agreement are ongoing.
Recognizing the importance of critical raw materials for green and digital transitions, the European Commission has been forming partnerships on raw materials under its Action Plan on Critical Raw Materials and the Critical Raw Materials Act. The EU has already signed agreements with Canada and Ukraine in 2021, Kazakhstan and Namibia in 2022, and Argentina, Chile, Zambia, the Democratic Republic of Congo, and Greenland in 2023. Agreements with Rwanda, Norway, and Uzbekistan are planned for 2024.
Following the MoU, the EU and Australia will work together to develop a roadmap with specific actions to implement this Strategic Partnership over the next six months.
