The European Union has signalled it is ready to take direct stakes in Australian critical-minerals projects as part of a broader effort to secure long-term access to resources essential for advanced technologies and defence industries.

During discussions in Melbourne with Australia’s resources minister, Madeleine King, EU Trade Commissioner Maros Sefcovic said the bloc had completed its first selection of projects that will receive official support, with the list set for release shortly.

He described the initiative as a deliberate step to protect Europe from the supply-chain shocks it has experienced in recent years, citing past energy dependencies and rising competition for strategic raw materials.

The EU’s planned participation could include equity investments, long-term offtake agreements and joint financing structures.

Institutions such as the European Investment Bank, national development banks and major industrial companies are expected to contribute to funding by providing advance payments or direct investment to secure Australian output.

The strategy reflects Europe’s growing concern over tightening global markets, particularly following China’s restrictions on exports of key minerals used in batteries, electronics and artificial intelligence systems.

Sefcovic said the bloc aims to follow Japan’s example by strategically investing in mines and processing facilities abroad to strengthen resilience.

He emphasised that Europe had already paid a high price for past dependencies, including on Russian energy, and now faces similar pressures in areas like semiconductors and rare-earth elements.

Australia, with its extensive resource base and established regulatory framework, has emerged as one of Europe’s most trusted partners in diversifying supply chains.

The discussions also revived momentum toward a free-trade agreement between Australia and the EU, after a 2023 attempt collapsed over differences on agricultural market access.

Sefcovic said he expects negotiations to resume early next year, reflecting a renewed recognition of Australia’s strategic value in the global minerals landscape.

For Canberra, the prospect of deeper European investment aligns with its long-term ambition to develop more domestic processing capacity and strengthen its role in global clean-energy and technology supply networks.

As the EU prepares to publish the projects it intends to support, both sides are positioning the partnership as a pillar of long-term resource security.

The final selection is expected to attract significant attention from industrial investors seeking stable access to Australia’s critical-minerals sector.