- EU-Australia FTA will remove 5.5% critical minerals tariff
- Agreement expected to be signed early next year
- Australia, EIB 'very close' to MOU for funding arm
- Looking initially at rare earths, gallium, antimony
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The European Union expects a wave of investment into the Australian 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.
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.
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"It is going to be a game changer," Meredith said.
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, Meredith added.
"The European Union will be massively investing in critical minerals. Since we wish to diversify away from China, then one of the most likely partners has to be Australia," he said.
EU policy proposals have laid out as much as €10 billion ($11.2 billion) for critical raw materials within the larger €409 billion competitiveness fund, as the EU debates its budget from 2028 to 2034.
Australia is one of several critical minerals "superpowers" in which the EU is looking to invest, including Brazil, South Africa and Canada. The EU also expects to invest along the supply chain, including in processing, Meredith said.
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