The European Union has announced that it is prepared to take direct equity stakes in Australian critical-minerals projects, marking a significant escalation in its efforts to secure supply chains for minerals essential to defence, artificial intelligence and clean-energy technologies.

EU Trade Commissioner Maroš Šefčovič revealed that following discussions with Australia’s Resources Minister Madeleine King, a first set of Australian projects of interest has already been selected and a public list is expected “very, very soon.”

Mr Šefčovič indicated that investment vehicles may include direct equity, long-term offtake agreements and joint-venture financing, with backing from the European Investment Bank and national development banks.

He described the move as part of the EU’s economic-security agenda, emphasising that “Australia’s strong capacity and shared high standards are key assets.” The push responds to growing concern in Europe over its dependence on external suppliers, particularly as China tightens export restrictions on rare earths and other critical raw materials.

The announcement builds on existing cooperation between Australia and the EU in the critical-minerals space: in May 2024 the two parties signed a Memorandum of Understanding to build integrated value chains from exploration to recycling.

Australia’s Trade Minister Don Farrell confirmed that interest from allies—especially in Europe, Japan and South Korea—is increasing as Canberra positions itself as a “safe and reliable” alternative to supply-chains dominated by China.

The initiative also reignites momentum in the stalled free-trade negotiations between Australia and the EU. Schéfčovič remarked that the renewed dialogue between the parties is advancing and expects a new round of talks early in 2026. For Australia, the deal offers a deepening of strategic ties with Europe while leveraging its mineral-rich resources.

For the European Union, the move aligns with its broader industrial strategy to lessen dependencies and enhance autonomy in critical raw materials.

By securing upstream involvement—rather than relying purely on importation—Brussels is following the lead of nations such as Japan, which have adopted upstream investment in mining and processing to safeguard supply chains.

The coming publication of the list of Australian projects will be closely watched by global mining firms, investors and governments alike, as it signals a shift in how Western economies engage with resource-rich partners and may reshape the global landscape for critical-minerals investment.