The European Union and Australia sign an agreement on key minerals

The European Union and Australia have signed an agreement to enhance cooperation and investment in key minerals. These important raw materials such as copper, lithium, nickel and platinum are essential for the energy transition, as they are needed for electric car batteries, for example.

Last March, the European Commission announced measures to ensure that the European Union obtains enough minerals in the coming years to transition from fossil raw materials, such as oil and gas, to more sustainable energy sources. The agreement with Australia is part of an attempt by Western countries to secure access to these materials and defend themselves against Chinese dominance. China is the largest supplier of key raw materials and currently controls a significant share of the supply.

“Australia is a like-minded partner and global leader when it comes to critical raw materials,” EU Trade Commissioner Valdis Dombrovskis said in a statement. “This collaboration represents a major step forward in our efforts to secure a more sustainable supply of critical raw materials for the EU while encouraging investment in Australia.”

Australia has vast, largely unexploited reserves of many important minerals. Exploiting these reserves requires large investments. Through the agreement signed on Tuesday, the European Union and Australia want to enhance investments in these projects and cooperation in the field of research and innovation.