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.

Australia and the EU Explore Collaboration Through Horizon Europe

Australia and the European Union have taken an important step toward deepening their research and innovation ties. On 10 September 2025, the Australian government and the European Commission announced that they have begun non-binding exploratory talks on the possibility of joining Horizon Europe, the EU’s flagship research and innovation programme.

Why Horizon Europe Matters

Horizon Europe is the world’s largest collaborative research fund, with a current budget of €95.5 billion over seven years (until 2027). It supports projects across a wide spectrum, from health and sustainability to advanced technologies and digitalisation, by linking research institutions, businesses, and policymakers across borders. For Australia, association would mean the ability to both participate in and lead Horizon Europe projects, joining a community of around 20 other non-EU associated countries, including New Zealand and Canada.

The Consultation Process

The Australian Department of Industry, Science and Resources has now launched a public consultation to assess whether moving forward with formal negotiations would serve the national interest. Stakeholders ranging from universities and research institutes to SMEs, industry groups, and all levels of government are being invited to contribute their views. Feedback is encouraged from both supporters and critics of association. More details can be found here: Have Your Say: Association to Horizon Europe. As the Business Council we intend to participate in this consultation.

Stakeholder Perspectives

Australia’s research community has already voiced strong support. Universities Australia and the Group of Eight have both emphasised the strategic value of joining Horizon Europe, noting that participation would strengthen Australia’s global research competitiveness at a time when international partnerships are becoming more critical. They highlight opportunities in fields such as health, climate, and digital innovation—areas of shared priority with Europe.

What It Means for German-Australian Collaboration

For the German-Australian Business Council, these developments are highly relevant. Association with Horizon Europe would open new avenues for bilateral and multilateral partnerships involving German and Australian universities, research institutions, and innovative businesses. As both Europe and Australia seek to foster resilient, knowledge-driven economies, Horizon Europe could become a powerful platform for transnational collaboration.

This is still an early stage in the process. The exploratory talks are designed to clarify terms and principles before any binding agreement is considered. But the direction of travel is clear: both Australia and the EU are looking seriously at the opportunities Horizon Europe presents.

Together with our partners in the Australian Business in Europe (ABIE) network, the Business Council intends to actively engage with this process and we shall be contributing to the consultation. We’d welcome your thoughts and comments.

BACK TO OVERVIEW

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/

Newest Addition to the World’s Oldest Library, Verona, May 2025

The oldest continuous library in the world receives its newest edition!

On behalf of the German Australian Business Council e.V. Australian Business Council, Co-Chair, Sabine Pittrof, has this weekend donated a book from member Dr. Christoph Hein “Australia 1872” to the world’s oldest continuous library, the Fondazione Biblioteca Capitolare di Verona (FBC) in Verona, Italy. The FBC is over 1500 years old and houses an extraordinary collection of manuscripts and treasures important to the history of humanity. It is also home to two priceless, antique globes crafted by Johann Gabriel Doppelmayr (1677- 1750), a German astronomer, cartographer, physicist and mathematician. The globes are dated 1728, 50 years before Captain Cook embarked on his voyage. They offer an insightful view of how European astronomers and scientists perceived Terra Australis during this period of history.

Hein’s “Australia 1872” is a fitting inclusion, further diversifying the library’s collection to include this German Australian story of history, politics and photography.

Thanks to members, Tonya Stevens and Nina Fiorenza for co-ordinating this special handover with the President of FBC and Canon of Verona Cathedral, Monsignor Bruno Fasani.

The handover was also attended by Business Council board members Jessica Walker, Francesca Ubaldi and special guest, Hon Michelle Roberts MLA.

BACK TO OVERVIEW

CPA Australia Budget Report, March 2025

The 2025-26 Australian Federal Budget was handed down by Federal Treasurer Dr Jim Chalmers on Tuesday 25 March 2025 from Parliament House in Canberra. Here is some information from CPA Australia regarding the Budget:

For a more detailed analysis: CPA Australia Budget Report 2025-26

Key highlights: CPA article

Australian Federal Budget Landing Page

 

BACK TO OVERVIEW

End of Year Message 2024, Sabine Pittrof, Chair

Dear Members and Friends,

As we approach the end of 2024, it is a good time to look back on the year for the German Australian Business Council.

2024 was a year of continued transition: Both Business Council Patrons, H.E. Ambassador Natasha Smith, and Consul-General Kelly Matthews, have commenced their posts, and both have kindly agreed to take up the roles as our Patron and Co-Patron. Our Board has had ‘a changing of the guard’ in key roles farewelling long-term treasurer, Eberhard Goihl, event oversight lead, Peirui Tan, and deputy chair, Evangelos Kotsopoulos, as well as board members Sergej Bukovac, Dalibor Vukadin and Simone Wienhausen. As announced at the AGM in April, in order to take some pressure off the chair role, we have moved to a Co-Chair model. I am delighted to announce that long-term Munich board member Robert Harrison has agreed up step to the role of Co-Chair. I will initially stay on as the lead chair and will, after a transition period, move to the role of Co-Chair with a focus on the liaison with the Australian Business in Europe (ABIE) network.

Regarding value delivered to our members, we championed 12 events this year across three cities. My personal highlights being the Ambassador’s Dinner in Frankfurt at which we welcomed our Patron, H.E. Ms Natasha Smith, and the visit to the European Space Agency at Darmstadt in February.

One important facet of the Business Council is to make our voices heard in Australian policy discussions and decisions. In co-operation with the ABIE network we successfully issued a further submission relating to Free Trade Agreements. It is with great satisfaction that for the first time, ABIE, as a network, was invited to provide representation on this topic at a public hearing in Parliament House, Canberra. Fellow board member Robert Harrison and I represented the Business Council at this hearing, together with representatives from our French and British sister organisations. It is very gratifying for the Business Council to be recognised as a key organisation for business networking in the private and government sectors between Germany and Australia.

It is only with the efforts of our voluntary board members that the Business Council continues to build on our strengths to grow and evolve. The quality of our submissions and the success of our events are built on the support of our active members, Patrons, Partners, Board and staff. I would like to take this opportunity to thank each of you for your contribution this year and ongoing support. Special thanks go to our event leads Lucia Santosa and Dietrich Klusemann, for their hard work in managing the event team transition, and to our event managers, Gordana Paton and Ulrike Neumann, for looking after the smooth running of our events.

My deepest gratitude goes to our office manager, Suzanne Heim, for her unwavering support of our association. Many of you would not realise the extent and broad range of the work Suzanne is completing in the background. She is the backbone of the Business Council and the Board would not function without her. Her talent and dedication make her an invaluable and integral part of the Business Council. A heartfelt Thank You for the great work that you do, Suzanne!

It goes without saying:  A very big Thank you to you, our members and friends, for your dedication to the cause of enhancing and expanding bilateral business relations, and supporting our activities. A special thanks goes to the Commonwealth Bank of Australia, our premium sponsor. We highly appreciate your support and partnership and look forward to our joint event in March next year.

In 2025, we will be primarily focused on two areas: 1. Increasing value to our members and 2. The planning of business information and networking events throughout the year, including the AGM to be held on 8 April in Frankfurt. The board will convene for our annual strategy meeting on 18 January 2025, confirming a new 2-year strategy. Your ideas and input will be most welcome. Please approach any board members or email them to info@gabc.eu.

Once again, I would like to thank you for your continued support and commitment.

I wish you and your families a Merry Christmas and a very Happy and Healthy New Year.

Best Regards,

Sabine Pittrof

Chair, on behalf of the Board

BACK TO OVERVIEW

Business Council Chair attends the launch of Austrian sister organisation

Business Council Chair, Sabine Pittrof, attended the launch of the Austrian Australian Business Council in Vienna last week.

“I was very impressed with the high quality of companies attending and delighted to be asked to recount the history of the Australian Business in Europe network. I would like to congratulate  AABC Chairs Gabriele Costigan and Travis Pittman and their team on a successful event”, says Sabine. The German Australian Business Council would like to congratulate its sister organization in Austria. We look forward to collaborating on joint events and within the ABIE network more broadly.

www.aabc-austria.com

Ambassador Gabriele Visentin

BACK TO OVERVIEW

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.