The European Union expects a wave of investment into Australia’s critical minerals sector as it pushes to diversify its supply chain away from China, the bloc’s ambassador to Australia, Lawrence Meredith, said on Tuesday, October 27, 2026.
Australia and the European Union struck a free trade agreement in March after eight years of negotiations, removing tariffs on almost all goods and easing EU access to Australian critical minerals. Once both parties sign and ratify that agreement, expected early next year, a 5.5% EU tariff on critical minerals will be removed, which Meredith called a game changer.
In parallel, talks are very close for Australia to sign a memorandum of understanding with the European Investment Bank, which would act as the bloc’s funding vehicle. EU policy proposals have laid out as much as 10 billion euros (about $11.2 billion) for critical raw materials within a larger 409 billion euro competitiveness fund, as the bloc debates its budget from 2028 to 2034.
Australia said on Tuesday it would refresh its critical minerals strategy to place greater emphasis on refining and processing, and the EU is looking initially at the minerals Australia will prioritise for its strategic reserve: gallium, antimony and rare earths. The EU also expects to invest along the supply chain, including in processing, with Australia one of several critical minerals superpowers it is courting, alongside Brazil, South Africa and Canada.
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Bhudev Bhagaliya is an experienced and senior journalist who has carved a distinct niche for himself in the world of Hindi journalism through his profound understanding and precise writing style. With over two decades of experience in the field of journalism, he has held key responsibilities at Dainik Hindustan for 12 years and at Amar Ujala for one year. Currently, he serves as the Content Editor for the Jagrook Youth News newspaper and portal, where he plays a crucial role in ensuring the quality and credibility of the news content. Bhudev Bhagaliya consistently writes about issues that help raise awareness within society and among the younger generation.