The European Union would like Australia to make foreign investment easier, its ambassador in Canberra said on Wednesday, as the bloc looks to diversify its supply chain for critical minerals.
Ambassador Gabriele Visentin said EU investment in Australia was already “huge” and the bloc was eager to grow that especially when it comes to critical raw materials, such as lithium, cobalt and nickel.
Australia is rich in critical minerals that are essential for defense applications and the transition to cleaner energy, and its allies view it as a key potential source as they seek to break China’s dominance in the supply of those materials.
“We want to invest more and more in likeminded partners,” he said at the Minerals Week conference in Canberra.
“We would like to do even more and we would like to see an environment here in Australia which will encourage even more foreign direct investment.”
In May, the two sides signed a memorandum of understanding to cooperate more closely critical and strategic minerals as the EU tries to diversify its suppliers away from China and Russia and transform its economy to reduce carbon emissions.
Australia and the EU have been negotiating a free trade agreement since 2018 although a deal remains elusive.
Talks ground to a halt last October after Australia rejected a deal it said failed to sufficiently open up European agriculture markets for Australian exports.