Authorities of Australia and the European Union have signed a pact to boost cooperation and investment in critical minerals production in a move to reduce dependency on Chinese supply.
Ministers in Canberra and Brussels signed a memorandum of understanding to be followed by the joint development of “concrete actions” over the next six months to improve collaboration on critical minerals projects.
“Australia is a like-minded partner and a global leader when it comes to critical raw materials,” EU Commissioner for Trade Valdis Dombrovskis said in a statement cited by Bloomberg.
“This partnership marks a major step forward in our efforts to secure a more sustainable supply of critical raw materials for the EU, whilst fostering investment in Australia.”
Under the MoU, Australia and the EU will look to boost investment in critical mineral projects, including joint ventures, as well as cooperating on research and innovation.
The EU is aiming to reduce its dependence on critical minerals produced by China which has a firm grip on the market of the “building blocks” for the new green economy. The alternative sources of critical minerals such as lithium, cobalt and nickel, which are used in the manufacturing of equipment including computer chips, solar panels and military hardware, will hinder China’s efforts to “weaponise” its dominance of the sector.
Theodor Lisovoy, Editor in Chief, Rough&Polished
