Australia’s mining sector is set to gain a major export and investment boost under the newly finalised Australia–European Union Free Trade Agreement (A-EU FTA), with tariffs scrapped on critical minerals and new pathways opened for EU capital into Australian projects.
Under the agreement, all tariffs on Australian energy and resources exports to the EU will be permanently eliminated, including those applied to critical minerals, lithium hydroxide, hydrogen and associated carriers, which have faced duties of up to around 5.5 per cent.
The tariff removal is expected to sharpen the competitiveness of Australian miners in the European market, with EU companies – particularly battery manufacturers – signalling stronger demand for Australian critical minerals as a result.
The agreement builds on the Australia–EU Strategic Partnership on Sustainable Critical Minerals signed in 2024, strengthening collaboration across critical minerals, renewable fuels, and research and development.
The Association of Mining and Exploration Companies (AMEC) welcomed the agreement, particularly the removal of tariffs on critical mineral exports.
“This is a really positive outcome for Australian critical minerals producers looking to access the European market and ensures Australian companies can compete on a fair basis,” Pearce said.
“AMEC commends Minister Farrell and the Federal Government on securing this important outcome – particularly at a time of geopolitical uncertainty.”
Speaking during Minerals Week 2026 in Canberra, Minerals Council of Australia chief executive officer Tania Constable said the agreement would strengthen Australia’s position as a reliable global supplier.
The A-EU FTA is expected to improve market access for Australian miners while reinforcing Australia’s role in supplying materials critical to energy systems, defence technologies and advanced manufacturing.
It also provides a platform for increased EU investment across commodities including lithium, rare earths, antimony, nickel, cobalt, copper and uranium, supporting further value-adding opportunities within Australia’s resources sector.
The EU deal follows an agreement a couple of weeks ago for Australia to join the G7 critical minerals alliance helmed by Canada. That deal deepened cooperation with Canada on critical minerals exploration and processing as well as other avenues for cooperation between the two countries.