The EU and Australia have agreed a Memorandum of Understanding (MoU) on cooperation around critical minerals used in the development of green and digital technologies.
Diversification and development
A press release from the European Commission (EC) says that the bilateral partnership on sustainable critical and strategic minerals is aimed at helping the EU to “diversify its supplies of materials necessary for the green and digital transitions”.
The agreement will also allow Australia to develop its domestic critical minerals sector, the Australian industry department said.
Both sides will also “explore cooperation in countries where the EU and Australia have mutual interests” with a focus on mitigating impacts on the environment and “benefitting local communities”.
It also “promotes innovative and digital technologies and services for mining”, as well as in other parts of the supply chain of critical minerals.
‘A major step forward’
The agreement sets out three areas of cooperation:
- Sustainable raw material value chain integration
- Research cooperation on that value chain, including on mitigation of its environmental and climate impacts
- Environmental, social and governance (ESG) standards and “improved policy alignment”
As well as supporting the development of clean energy and digital technology, the agreement also aims to support the defence and aerospace sectors.
EU Commission vice-president for trade, Valdis Dombrovskis, said:
“Australia is a global leader when it comes to critical raw materials.
“This partnership marks a major step forward in our efforts to secure a more sustainable supply of critical raw materials for the EU. This will also help us to deliver the green and digital transition.”
‘Power, not trade’
Security in the critical mineral supply chain is a growing focus for governments. The EU’s own reserves of critical minerals have proven difficult to exploit as a result of rising energy costs and local opposition to mining projects.
The EU signed the Critical Raw Materials Act (CRMA) into law last year, setting a target to mine 10%, recycle 25% and process 40% of 17 of the main raw materials it uses by 2030.