The European Union is advocating for easier foreign investment conditions in Australia, aiming to diversify its supply chain for crucial minerals. This appeal comes as the EU seeks to enhance its access to vital resources such as lithium, cobalt and nickel, which are essential for both defense applications and the transition to cleaner energy.
Gabriele Visentin, the EU Ambassador in Canberra, highlighted the substantial current EU investment in Australia and expressed a desire to increase it, particularly in the critical raw materials sector. During the Minerals Week conference in Canberra, Visentin emphasized the EU’s interest in investing further in like-minded partners.
“We want to invest more and more in like-minded partners,” Visentin stated. “We would like to do even more and we would like to see an environment here in Australia which will encourage even more foreign direct investment.”
In May, the EU and Australia signed a memorandum of understanding to enhance cooperation on critical and strategic minerals. This agreement is part of the EU’s broader strategy to reduce reliance on Chinese and Russian suppliers and to transform its economy in alignment with carbon reduction goals.
Despite these efforts, the ongoing negotiations for a free trade agreement between Australia and the EU, which began in 2018, have yet to produce a final deal. Talks stalled last October when Australia rejected a proposed agreement, citing insufficient access to European agriculture markets for Australian exports.
