The European Union is urging Australia to ease foreign investment regulations as it seeks to diversify its supply chain for critical minerals, the EU’s ambassador to Australia, Gabriele Visentin, said on Wednesday.
Speaking at the Minerals Week conference in Canberra, Ambassador Visentin emphasized the EU’s significant investment in Australia, particularly in critical raw materials such as lithium, cobalt, and nickel.
These materials are essential for defense and the global transition to cleaner energy. The EU views Australia as a key alternative supplier to reduce reliance on China’s dominance in the market.
“We want to invest more in like-minded partners,” Visentin stated, adding, “We would like to see an environment in Australia that encourages even more foreign direct investment.”
In May, the EU and Australia signed a memorandum of understanding to strengthen cooperation on critical and strategic minerals, as the EU seeks to diversify its supply away from China and Russia while working towards reducing carbon emissions.
The two sides have been negotiating a free trade agreement since 2018, though a final deal remains elusive. Talks stalled last October after Australia rejected an offer that it deemed insufficient in opening European agricultural markets to Australian exports.
