Germany and Australia Deepen Cooperation on Critical Raw Materials

Germany is seeking to increase its sourcing of critical raw materials, including lithium and rare earths, from Australia as both nations aim to secure supply chains and reduce strategic dependencies. This move comes amid growing global competition for these essential resources, particularly in the context of the energy transition and high-tech manufacturing.

Strategic Partnership Enhanced

The deepened cooperation was discussed during a meeting between Australian Foreign Minister Penny Wong and German Foreign Minister Johann Wadephul in Canberra on February 5, 2026. Wong and Wadephul agreed to elevate their Enhanced Strategic Partnership to a new level, focusing on increased collaboration in the raw materials sector and broader trade relations .

Australia’s Role in Diversifying Supply Chains

Minister Wadephul emphasized Australia’s pivotal role in diversifying Germany’s supply chains, noting the country’s significant reserves of critical minerals. “Many critical raw materials, such as lithium, are mined here, and we are very interested in expanding our cooperation in the raw materials sector, particularly for strategically important minerals,” he stated . Australia’s Greenbushes lithium mine, located south of Perth, is the world’s largest hard-rock lithium mine, producing approximately a fifth of global lithium supplies.

Lithium and Rare Earths: Key Resources

Lithium is a crucial component in batteries for electric vehicles, smartphones, and energy storage systems, making it vital for Germany’s energy transition and high-tech industries. Australia also possesses substantial deposits of rare earth elements like neodymium and terbium, which are essential for manufacturing powerful magnets used in various industrial and technological applications.

Investment and Trade Agreements

Wadephul acknowledged that accessing these resources will require substantial investment. “You also have to be prepared to spend money due to the fact that developing these raw materials is sometimes expensive,” he said, adding that Germany is heavily reliant on these materials . Alongside the raw materials partnership, both countries are pursuing a new attempt at a free trade agreement between the EU and Australia, following unsuccessful negotiations in 2023. Wadephul expressed hope for a swift agreement, potentially within the year .

Global Competition and US Initiatives

The pursuit of critical raw materials is a global strategic priority. The United States is also actively working to secure its supply chains, relying on government-guaranteed minimum prices to attract investment and reduce dependence on China. US Vice President JD Vance presented this concept at a ministerial conference in Washington D.C. On February 5, 2026, attended by representatives from over 50 countries, including Germany . The U.S. Initiative aims to establish a preferred trading bloc for materials critical to high-tech manufacturing.

Australia and Germany, as middle powers with shared values, are strengthening their collaboration to address these challenges and ensure a stable and diversified supply of critical raw materials .