Anthony Albanese, Prime Minister

Clarifying AUKUS: PM Albanese’s visit to US

Prime Minister Anthony Albanese’s visit to Washington this week reaffirmed that AUKUS—the defence pact binding Australia, the U.S., and the U.K.—remains intact but not immutable. Speaking after meetings with U.S. officials, the Prime Minister confirmed that the Pentagon’s ongoing review could lead to “updates” to the agreement; he insisted Australia’s commitment “hasn’t wavered for a moment.” His tone was one of reassurance, but the subtext was clear: the alliance is entering a phase of recalibration rather than expansion.

For Canberra, that distinction matters. The AUKUS framework underpins Australia’s most ambitious military and industrial undertaking in decades, from nuclear-powered submarines to advanced technology cooperation. Any redefinition of timelines or procurement structures could have direct consequences for Australian industry and defence planning. Albanese’s emphasis on flexibility—saying Australia was ready to “move sooner” if needed—suggests awareness that politics can shift the Australian-US alliance faster than any shipbuilding schedules.

Washington’s motivations for reviewing AUKUS appear to be pragmatic rather than political. The U.S. defence establishment is currently reassessing priorities amid stretched industrial capacity and escalating commitments in multiple theatres. Officials have framed the review as an effort to “clarify ambiguity,” a diplomatic way of acknowledging that the original deal, negotiated under very different leadership, may now require operational fine-tuning. President Trump’s insistence that the partnership is moving “full steam ahead” offers reassurance, but the qualifier—“with clarity”—is telling.

For Australia, the challenge will be to remain a co-author rather than a bystander in this next chapter. The promise of AUKUS was never only about submarines; it was about embedding Australia in the core of Western defence innovation. To protect that position, Australia must stay assertive in defining industrial roles, technology access, and strategic outcomes—areas where early momentum can easily be lost in the fog of bureaucratic review. This will also mean linking up with European partners, such as France and Germany, whose defence industries are increasingly pivoting towards closer Indo-Pacific engagement and who view AUKUS as a potential platform for complementary cooperation rather than competition.

Seen from the Indo-Pacific, this moment is less a crisis than a stress test of alliance durability. AUKUS continues to symbolise deterrence and technological cooperation, but it also reveals how major defence compacts evolve under political change. Albanese’s task will now be to translate Washington’s reassurances into tangible continuity at home—while quietly ensuring that Australia’s engagement with Europe remains part of a broader, multipolar strategy that strengthens rather than narrows its security options.

Europe’s Rare Earth Challenge: How Australian companies can be part of the solution

As the global race for clean energy and electrification accelerates, Europe finds itself at a crossroads.

The continent’s ambitions to lead in electric vehicles (EVs), renewable energy, and advanced manufacturing are under pressure due to a critical supply chain bottleneck: rare earth elements. These metals—particularly neodymium and praseodymium (NdPr)—are essential for EV motors, wind turbines, and other high-tech applications. Yet the European Union (EU) sources nearly all its rare earths from a single country – China.

China currently controls around 60% of global rare earth mining and over 90% of the processing capacity. For the EU, this dependency translates into significant vulnerability. Recent Chinese export controls on rare earth magnets and upstream materials have reinforced these concerns.

In April 2025, Beijing introduced new export licensing rules that led to temporary delays in shipments, sending ripples through EU industrial supply chains. From EV manufacturing to wind turbine assembly, the risk of supply interruptions has triggered urgent calls for diversification and resilience.

Several European auto-supplier plants have already shut down, with more outages coming, said the region’s auto supplier association, CLEPA. The average electric vehicle uses about .5 kg of rare earths elements, and a fossil-fuel car uses just half that, according to the International Energy Agency.

In a recent article in Reuters (Auto companies ‘in full panic’ over rare-earths bottleneck, June 9, 2025) Frank Eckard, CEO of German magnet maker Magnosphere is quoted as saying “the whole industry is in full-panic …they are willing to pay any price”
It not just the German auto industry that is worried.

German headquartered wind turbine maker Siemens Gamesa is looking to reduce its dependence on China in some critical parts of its supply chain with the company nearly 100% dependent on China for rare earths and permanent magnets, which are among the critical materials needed to make wind turbines.

Strategic Response: Policy, Partnerships, and the Critical Raw Materials Act

The EU has responded with a multifaceted strategy. Central to this is the Critical Raw Materials Act (CRMA), introduced in 2023. The Act sets ambitious 2030 targets: extracting at least 10% of critical raw materials domestically, processing 40% within the EU, and recycling 25%. It also aims to ensure no more than 65% of the EU’s annual consumption of any strategic raw material comes from a single country.

While these targets are a long way from being met—especially for rare earths—they have galvanized action. The EU is investing in mining and refining projects, supporting recycling infrastructure, and developing strategic partnerships with resource-rich countries like Namibia, Canada, and Australia. Notably, Sweden recently announced the discovery of Europe’s largest rare earth deposit, though commercial production remains years away.

Building Resilient Supply Chains: Offtake Agreements in Action

European industries are also taking direct action. Companies are signing offtake agreements with rare earth producers outside China to lock in long-term supplies.

  • Siemens Gamesa Renewable Energy has signed a five-year binding offtake agreement with Arafura Rare Earths (ASX: ARU) to supply neodymium-praseodymium oxide from the Nolans project in Australia. The material will feed directly into Siemens Gamesa’s wind turbine magnet production in Germany, helping shield European renewables from Chinese supply risk.
  • Schaeffler, the German automotive supplier, secured a five-year agreement with Norway’s REEtec to supply rare earth oxides starting in 2024. This marks a milestone in Europe’s effort to build a rare earth value chain entirely outside of China.
  • Hastings Technology Metals (ASX: HAS) has entered a 10-year offtake agreement with thyssenkrupp Materials Trading for the supply of up to 70,000 tonnes of rare earth carbonate from its Yangibana project in Western Australia. The deal guarantees 9,000 tonnes per year for the first five years and 5,000 tonnes annually for the next five. Thyssenkrupp will have exclusive global distribution rights, except for a few existing customers. The material—rich in neodymium and praseodymium—will support a broad range of EU clean tech applications.
  • Australian Strategic Materials (ASX: ASM) has received a purchase order from Vacuumschmelze (VAC), a leading German based global manufacturer of magnetic materials and solutions. VAC has ordered 7.2 tonnes of neodymium-iron-boron (NdFeB) alloy across five custom specifications. This agreement builds on successful validation of ASM’s materials and reflects the deepening strategic relationship between ASM and VAC, reinforcing Europe’s downstream magnet supply resilience.

We expect further European interest in Kazakhstan and Brazil where several Australian companies are developing world class projects.

The Road Ahead

As Europe scales up its electrification and climate goals, reducing rare earth dependency on China has become not just an economic necessity, but a strategic imperative. The combination of policy initiatives, international partnerships, and forward-looking industry contracts is laying the foundation for a more resilient supply chain.

Magnet production remains a missing link in the European value chain.

The EU’s efforts to diversify and secure rare earth supply are already influencing global investment flows and reshaping industrial strategies. By locking in new sources and investing in processing, Europe is moving toward a future where its green and digital ambitions are not held back by critical material shortages.

 

Matthew Reynolds, German Australian Business Council Board Member

https://www.linkedin.com/in/matthewreynolds001/

Ambassador Gabriele Visentin

EU Ambassador urges Australia to make investment easier

Reuters is reporting that the EU Ambassador in Australia, speaking at the Minerals Week Conference in Canberra, Australia, urged the country to make foreign financial investment simpler. Ambassador Gabriele Visentin said EU financial investment in Australia was already big, and the bloc aspired to grow the level of investment, especially when it comes to investing in the sourcing of critical raw materials, such as lithium, cobalt and nickel.

As we know in the German Australia Business Council, Australia is abundant in critical minerals. These are particularly important for the transition to cleaner energy. Currently, China has a dominant position in the supply of those materials.

In May 2024, the EU and Australia signed a memorandum of understanding to comply more carefully crucial and strategic minerals as the EU tries to diversify its providers away from China and Russia and change its economy to reduce carbon emissions.

Australia and the EU have been negotiating a free trade agreement since 2018, although a deal remains elusive. Talks, however, were halted last October after Australia rejected an offer which did not sufficiently open European farming markets for Australian exports.

Mining

Australian critical minerals projects in the global spotlight

The Australian Government has launched a new digital Critical Minerals Prospectus, showcasing more than 55 investment-ready projects to potential investors and buyers from around the world. The digital Prospectus features an interactive online map, shining a spotlight on the investment-ready projects across Australia’s critical minerals landscape.

The tool can be customised to navigate Australia’s rich and diverse mineral endowment, and a range of available government support, including potential funding for Australian critical minerals projects. Australia has an abundance of critical minerals needed to build essential components, for things like electric vehicles, solar panels, hydrogen technology and batteries.

The Government is also incentivising investment in critical minerals projects through a range of programs, including the $4 billion Critical Minerals Facility and the recently announced $7 billion Critical Minerals Production Tax Incentive.

The interactive Australian Critical Minerals Prospectus is available here.

Speaking at the launch, the Minister for Trade and Tourism, Don Farrell, highlighted that “Australia is ready and willing to meet the growing global demand for critical minerals, and we welcome international investment in key projects across the country. The new online Prospectus shines a spotlight on over 55 investor-ready projects which will attract the investment we need to build new industries, create more jobs, and become a renewable energy superpower.” The Minister for Resources, Madeleine King, added “Critical minerals are vital for the global efforts to reduce emissions and becoming increasingly important inputs for the defence industry. Australia’s resources industry has been developed with foreign investment, and we need overseas investment to build our critical minerals industry”

Australia – not (yet) a powerhouse for critical raw materials

The Economist in a recent article reports that Australia, despite its rich reserves of critical minerals like lithium and rare earths, faces major challenges in becoming a global powerhouse for supplying critical raw materials, required by industry in the transition to net zero.

Key obstacles highlighted in the article include the current dominance of China in refining and processing the materials. Australia currently relies on the export of materials and has not yet fully developed its own processing capabilities. The article concludes that there is also a need for more investment in infrastructure.

For more details, you can read the full article here.

Madeleine King

Australian Minister for Resources, Madeleine King, in Europe

Australian Minister for Resources and Northern Australia, Madeleine King, is currently in Europe to promote Australia as a reliable supplier of critical minerals to support global efforts to reach net-zero.  Minister King will hold bilateral talks with ministerial counterparts from Germany, the EU, France and the UK, and will participate in the inaugural International Energy Agency (IEA) Critical Minerals and Clean Energy Summit on September 28 in Paris.

Talks will involve industry representatives from across Europe and the UK, including Europe’s automotive industry, which will need more critical minerals to manufacture electric vehicles.

“Australia has the critical minerals the world needs to help lower emissions, and we have well-established export supply chains built over decades through our iron ore and gas industries,” Minister King said.

“Australia’s resources sector also has high environmental and social governance standards (ESG), and a global reputation as a stable and reliable export partner.

“I released Australia’s new Critical Minerals Strategy in June, which lays out Australia’s support for the industry and our plan to become a globally significant supplier of critical minerals by 2030.”

The visit to Europe and the UK will be a chance to outline how Australia is working with the sector and cooperating with international partners to diversify global supply chains and support investment in the mining and processing of key critical minerals.

“The world’s clean energy transition will ride on the back of Australia’s critical minerals,” Minister King said.

“Critical minerals are crucial components of clean energy technologies such as batteries for electric vehicles and energy storage, as well as for wind farms and solar panels.”

Australia is the world’s leading producer of unprocessed lithium, the world’s third-largest cobalt exporter and the fourth-largest exporter of rare earths. Australia is also the fourth-largest exporter of mined copper and nickel and a significant producer of aluminium.

Graphite from Zavalievsky mine in Ukraine

Recently, Perth-based company Volt Resources Limited re-started their graphite mine in Ukraine and in a recent webinar organised jointly with our member company DGWA, we were able to learn about the logistic and personnel challenges faced by the  Zavalievsky Graphite company in their operations. CEO Prashant Chintawa and Trevor Matthews, Director of Volt Resources, together with Roman Saramaga, CEO of Zavalievsky Graphite, reported on their activities.

Graphite is one of the most important materials for the transition to the green economy, as it is a major component required for the manufacture of anodes in lithium-ion batteries (LIB) for electric vehicles, for example. Currently, China is the major supplier of graphite to Europe, but there is a need for a major diversification of sources, which will be encouraged by the forthcoming European Union’s Critical Raw Materials Act.

The webinar can be viewed on YouTube® at this link.

The webinar was organised by the GABC Raw Materials Focus Group. We shall be organising further events – feel free to sign up for further information.

Volt Resource announces successful restart of graphite production at their Ukrainian mine

Australian-based graphite producer and graphite anode materials developer Volt Resources Limited has announced on 8 May that, following the winter stoppage at the Ukrainian Zavalievsky graphite mine and processing plant, in-depth production planning determined a one-month-per-quarter production cycle. Production of graphite subsequently recommenced on 11 April 2023. As of 5 May 2023, over 700 tonnes of graphite concentrate had been produced, including a record daily production of 88 tonnes on 26 April 2023. The average daily production is 54 tonnes with most of the graphite concentrate produced during the campaign achieving 88-96% purity. The Company plans to complete this current production campaign in mid-May 2023.

Volt CEO, Prashant Chintawar, said “Zavalievsky Graphite is a part of our growth strategy, and positions Volt as one of a small number of ex-China graphite producers globally. We congratulate the Zavalievsky team for overcoming many challenges, including power and supply chain disruptions, and personnel availability, to execute our operating plan for 2023 and deliver a very successful restart of the operation”.

Volt Resources is a client of German Australian Business Council member, DGWA based in Frankfurt. They have arranged for Volt to highlight their activities as a supplier of raw materials and their operation in war-torn Ukraine in a webinar on 23 May at 12:00 CEST. Feel free to sign up at this link.

Our raw materials focus group has organised this event. Reach out to us if you are interested in participating.

 

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.