- Australia to refocus critical minerals strategy on refining and processing.
- Minister says competition for investment has intensified since 2023.
- EU expects a wave of investment in Australian critical minerals.
- EU names South Africa among other target partners.
AUSTRALIA will refocus its critical minerals strategy on refining and processing, and the European Union says it will invest heavily to diversify supply away from China.
Resources Minister Madeleine King told the International Mining and Resources Conference in Sydney on Tuesday that the refreshed strategy aims to capture “more economic and strategic value” from the country’s minerals.
She said market conditions have become harder since the original strategy was released in 2023, competition for investment has intensified and supply-chain weaknesses remain.
Australia is one of the world’s largest suppliers of critical minerals, including rare earths used in defence and renewable energy. China dominates the complex and environmentally demanding refining stage of the supply chain.
Angus Campbell, Australia’s ambassador to the EU, said the new approach could lift exports to Europe, which takes only a small share of Australia’s critical minerals shipments.
France’s strategic minerals envoy, Benjamin Gallezot, said Paris wants closer cooperation with Australia across the whole chain, from mining to refining. Italy’s special envoy for critical raw materials, Alberto Castronovo, said Rome is following Australia’s planned strategic reserve with great interest.
EU Ambassador to Australia Lawrence Meredith said the bloc “will be massively investing in critical minerals” as it looks to reduce its reliance on China.
The EU and Australia struck a free trade agreement in March after eight years of talks. Once both sides sign and ratify it, expected early next year, a 5.5% EU tariff on critical minerals will be removed.
Meredith said talks were “very close” on a memorandum of understanding between Australia and the European Investment Bank, which would act as the bloc’s funding vehicle. EU proposals set aside up to 10 billion euros for critical raw materials within a wider 409-billion-euro competitiveness fund for 2028 to 2034.
The EU is initially looking at the minerals Australia plans to hold in its strategic reserve: gallium, antimony and rare earths.
Australia is one of several critical minerals “superpowers” where the EU wants to invest, alongside Brazil, South Africa and Canada. Meredith said the bloc also expects to invest along the supply chain, including in processing.
Zimbabwe, which suspended exports of raw lithium concentrates in February, has also made local processing a policy priority.
