Australia and EU seal trade deal to cut reliance on China’s rare earths

EU’s Von der Leyen says critical minerals partnership is ‘crucial’ as China dominates supply chains.

Australia and the European Union have signed a trade deal removing tariffs for nearly all exports of Australian critical minerals, amid concerns over China’s dominant position in the supply of rare earths.

European Commission President Ursula von der Leyen on Tuesday said the deal, which was eight years in the making, meant the EU and Australia were “moving even closer together”.

“We ⁠cannot be over-dependent on any supplier for such crucial ingredients, and that is precisely why we need each other,” von der Leyen told Australia’s parliament.

“For both Europe and Australia, getting China right is a strategic imperative, and this is why bringing to life our critical minerals partnership will be crucial to our success.”

China dominates global critical mineral supply chains, controlling roughly 90 percent of processing for rare earths, which are essential for the production of technological equipment such as electric cars, lithium-ion batteries, LED televisions and camera lenses.