SYDNEY — 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, Reuters reported.
Source: Reuters, Sydney, Oct 27, 2026 — EU readying for major Australian resources investment
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, Reuters said. Once both parties sign and ratify that agreement, expected early next year, a 5.5% EU tariff on critical minerals will be removed. “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 for critical raw materials — $11.2 billion, yaani about 1,120 crore US dollars — within the larger €409 billion competitiveness fund, as the EU debates its budget from 2028 to 2034, Reuters reported.
Australia is one of several critical minerals “superpowers” in which the EU is looking to invest, including Brazil, South Africa and Canada, Reuters said. The EU also expects to invest along the supply chain, including in processing, Meredith said. The bloc is looking initially at the minerals Australia will prioritise for its strategic reserve: gallium, antimony and rare earths.
Australia said on Tuesday it would refresh its critical minerals strategy to place greater emphasis on refining and processing, as competition for investment intensifies and supply-chain concerns persist. In a separate Reuters report, Resources Minister Madeleine King said the revised strategy would guide the next phase of the sector, Reuters via TradingView reported.
Source: Reuters via TradingView, Oct 27, 2026 — Australia revamps critical minerals strategy
Australian companies going faster through the early project development would speed the investment process, Meredith said. No investment amount for Australia alone, and no signed EIB memorandum, was announced on Tuesday — both remain proposals and talks, not completed deals.