STORY CONTINUES BELOW THESE SALTWIRE VIDEOSBy Lewis Jackson and Kirsty Needham
Farrell told Reuters in an interview on Thursday that a free trade agreement would simplify European investment in the country's burgeoning critical minerals sector, in part by smoothing access through mandatory Foreign Investment Review Board screening.Australia supplies around half of the world's lithium, as well as other minerals like rare earths used in batteries for electric cars and defence, amid a global push to diversify supply chains away from dominant producer China.
Germany wants to source rare earths and lithium from Australia as part of a broader strategy to diversify its trading partners and de-risk from China, Foreign Minister Annalena Baerbock said in a video address to a Sydney audience on Tuesday. Australia was an especially attractive place for critical minerals investment from the United States under U.S. Inflation Reduction Act rules because it was one of the few countries to have both mineral deposits and a free trade agreement with the U.S., said Farrell.