Lithium and the Green Revolution

The Economist magazine reports on the importance of lithium to the green revolution. Over half of the world’s supply currently comes from Chile, and the government is creating a state-owned company to produce the mineral. Private companies will have to form joint-venture companies in the future with this state-owned company, and the state will have a majority stake. Other Latin American and African countries are planning similar moves. The magazine criticises the current resource nationalism and notes that the nationalisation of companies has had a bad track record in the region, with the companies being mismanaged or corrupt. Extraction of the resources requires know-how, technology, and expertise which is currently unavailable in the region. The trend towards resource nationalism has also affected investment in the industry, as Bolivia (holding the second-largest reserves of lithium) has shown with a decree overturning a planned investment project.

The Economist also reproduces a chart which shows Australia holding a significant amount of lithium reserves, as well as supplies of other critical raw materials for the green revolution. An IMF paper recently estimated that revenues from the extraction of minerals, such as lithium, copper, cobalt and nickel, could rise four-fold because of the increased demand.

At the German Australian Business Council, we shall be looking at the implications for business in the next few months. Sign up for further information.

Mining Excavator

Australian Resources Minister welcomes “like-minded” foreign investors for Critical Minerals Projects

ExcavatorSpeaking in Darwin, Madeleine King, Australia’s Resources Minister, has reportedly said that Australia will be welcoming “like-minded” investors to invest in critical minerals projects, according to the Australian Financial Review.

The report continues that Minister King did not flag any ban on Chinese investment into the industry, but as the AFR continues, Australian Treasurer, Jim Chalmers, has already indicated that the country would be more assertive in ensuring that investment from abroad into critical minerals projects would be aligned with Australia’s national interest. He has already acted by preventing a major supplier of minerals from China from taking a bigger stake in one company.

At the German Australian Business Council, we are monitoring these developments closely. The recent visit by a German delegation to Australia and the forthcoming European Critical Raw Materials Act will provide an excellent opportunity to deepen relations between our countries.

Australia and Germany to collaborate on critical minerals study

Australia and Germany will work together to create new opportunities for critical minerals projects in order to meet climate and energy targets. Australian Minister for Resources and Northern Australia Madeleine King signed a joint Declaration of Intent with Parliamentary State Secretary at the Federal Ministry for Economic Affairs and Climate Action, Dr Franziska Brantner, in Perth on Thursday, 6th April 2023.

The Declaration will support a joint study to help Australia meet its ambitions to develop value-added industries around critical minerals, from extraction, refinement and recycling, and to help Germany secure reliable supplies of critical minerals to underpin its manufacturing and recycling activities.

“Both Australia and Germany recognise the important opportunity we have to build diverse, resilient and sustainable critical minerals value chains,” Minister King said. “Australia has vast reserves of critical minerals, which are essential components for clean-energy technologies such as electric vehicles, batteries, solar panels and wind turbines. Both countries have complementary climate, energy and strategic ambitions. The Declaration of Intent with Germany will help us understand which critical minerals are most important to support Germany’s industries and how Australia can be a partner of choice in meeting these needs.”

Minister King will later this year release Australia’s new Critical Minerals Strategy, which will help grow the sector and reflect the important role critical minerals can play in Australia’s commitment to net-zero emissions by 2050.

 

Press Release Australian Department of Industry, Science and Resources

European Union aiming to conclude Australia Free-Trade Deal by Summer

Bloomer is reporting that the EU is planning to conclude the free trade deal by Summer 2023 with further discussions happening in April 2023.

Apparently, the issues that still need to be agreed upon include the protection of the geographical indication of food, such as cheese, and wine, as well as data and privacy issues. An agreement on European market access for Australian meat and dairy products is also still to be finalised, as well as further progress on opening up public procurement markets.

The agreement will also include chapters on climate goals and labour standards with sanctions available should the principles of the Paris climate accords and the International Labour Organisation standards be breached.

At the German Australian Business Council, we have been active with our European partners in the ABIE network in supporting the con

WAGO Job Vacancies, Frankfurt, April 2023

Our corporate member, Government of Western Australia, are looking to strengthen their team with two new positions, located in Frankfurt. Please find the job descriptions and application details in the attachments.

ISEC_60568_DirectorInvestmentTradeDeutschland_230320

ISEC_60569_BDManagerDeutschland_230320

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Lithium export boom in Australia

The value of exports of Australian lithium has boomed in the recent year from AUD 5.2 billion to AUD 18.6 billion, according to figures published by the Office of the Australian Chief Economist.

Global demand for the critical raw mineral is expected to soar in the next few years as the material is used in many advanced products, such as batteries. Australia is one of the world’s key suppliers. Currently, rechargeable batteries use up to 80% of the global demand for lithium and Australia produces 53% of the world’s lithium.

Germany has recently signed agreements with Argentina to improve its supply and we hope that the forthcoming free trade agreement between the European Union and Australia will also encourage trade in raw and processed materials between the trading blocks.

ABIE Free Trade Agreement Submission, March 2023

In March 2023 a submission was made by the German Australian Business Council on behalf of the Australian Business in Europe (ABIE) network, regarding the Free Trade Agreement between Australia and the European Union. The submission was sent to the following:
• Prime Minister and Opposition Leader of Australia
• Ministers and Shadow Ministers for Foreign Affairs, Trade and Tourism, Climate Change and Energy
• Premiers of States and Chief Ministers of Territories
• Agent-Generals
• OECD Secretary-General
• EU and Australian FTA Chief Negotiators

Thanks and congratulations are extended to all those involved in putting this comprehensive submission together, in particular André Haermeyer, supported by Sabine Pittrof and Robert Harrison and many friends and colleagues from the ABIE network.

Click here for the submission: https://gabc.eu/download/abie-free-trade-agreement-submission-march-2023/

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Quantum Brilliance announces AUD 18 Million investment

German Australian Business Council member, Quantum Brilliance, announced an AUD 18 million investment round to continue supporting their development of a room-temperature computer based on synthetic diamonds. The spin-out from the Australian National University in Canberra has established a German base in Stuttgart and is collaborating with the Fraunhofer Institute IAF in Freiburg and the University of Ulm.

 

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Critical Raw Materials

The Economist magazine reports on the supply of critical raw materials, such as lithium, aluminium and cobalt. Many of these are supplied by countries with unstable governments, such as the Congo, or subject to sanctions, such as Russia.

Over the past few years, mineral resources have been discovered and increasingly exploited in Australia. The country is now becoming one of the suppliers of critical raw materials to industry in Europe, as the Economist highlights.

At the German Australian Business Council, we encourage the development of business relations on both sides of the globes, and we see the supply of critical raw materials as an important factor in strengthening the relations between our two countries.

If you are interested in finding out more about activities, then sign up here.

 

Job Vacancy: Event Manager

The German Australian Business Council is looking for a new event manager to support our mission to be a catalyst for the generation of business opportunities and relationships between our two nations. The position is available immediately.

The primary duties (undertaken independently and/or together with the responsible board member) will be to ensure the smooth preparation, running and follow-up of events. Details on the individual tasks can be found in the attached job description.

You will bring the following SKILLS/EXPERIENCE:
• Experience in organising events
• IT Skills ie Zoom webinars
• Design skills for invitations and social media is a plus
• Know-how in negotiating with event locations (hotels, restaurants, catering)
• Know-how in modern communication tools / MS Office
• Excellent communication skills in both English and German
• A strong interest in German-Australian relations is an advantage

The employee should be located in Frankfurt or surrounds but will also supply remote support to our Munich and Berlin groups.

Working hours are flexible. The contract/salary is based on a ‘520 € -Mini Job’.

If you are interested or know somebody who may be interested in supporting the work of the German Australian Business Council, please contact our board members:
• Dietrich Klusemann, Frankfurt: dietrich.klusemann@gabc.eu
• Peirui Tan, Frankfurt: peirui.tan@gabc.eu
• Eberhard Goihl, Munich: eberhard.goihl@gabc.eu