EU Pledges Billions for Australian Critical Minerals to Curb China

The European Union is launching a massive investment drive into Australia's critical minerals sector to diversify its supply chains away from China. EU Ambassador to Australia Lawrence Meredith announced the initiative during the International Mining and Resources Conference in Sydney, targeting minerals such as gallium, antimony, and rare earths. The bloc has proposed allocating up to €10 billion for critical raw materials as part of a larger €409 billion competitiveness fund.

This strategic shift follows a free trade agreement struck in March, which is expected to be ratified early next year and will remove a 5.5% EU tariff on critical minerals. To facilitate this funding, the EU and the European Investment Bank are nearing a memorandum of understanding. The partnership extends beyond mining into security and defense, with the EU planning to mobilize €800 billion for defense under the ReArm Europe program by 2030.

In response to the partnership and intensifying global competition, Australian Resources Minister Madeline King announced a revamp of the national critical minerals strategy. The updated strategy will prioritize refining and processing within Australia to further curb Chinese dominance in the sector. The cooperation also includes Australia's association with the Horizon Europe research program and a recently signed Security and Defence Partnership.