The European Union (EU) and Australia signed a Memorandum of Understanding (MoU) on 28 May 2024 to form a bilateral partnership to strategize and cooperate on sustainable critical and strategic minerals. The official partnership aims to enable the EU to diversify its supplies of materials necessary for the clean energy transition while also contributing to the development of Australia's domestic critical mineral sector. 

The EU-Australia Memorandum presents potentially new opportunities for private credit and private equity firms focused on impact investing to identify companies involved in sustainable mining and processing of these essential materials that may benefit from this partnership. Firms that can engage with emerging players in the critical minerals sector of the EU and Australia ahead of other companies can gain a competitive advantage. 

Let's explore the partnership between the EU and Australia on strategic minerals in detail. 

Objectives of The EU and Australia MoU on sustainable minerals

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  Jointly identify and develop mutual interest projects and benefits along the entire value chain of sustainable critical and strategic minerals of the EU and Australia.
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  Enhance industrial and industrial integration of the EU and Australia in the strategic and sustainable value chain of critical minerals. 
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  Develop open, fair, and competitive markets for critical raw and processed minerals. 

Areas of Cooperation for EU and Australia MoU

• Integration of sustainable raw materials value chains, including networking, creation of new business models, facilitation of trade and investment linkages, ensuring sustainability, and facilitating well-functioning critical supply chains.
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  Cooperation on research and innovation along the value chains of raw material, including minerals knowledge and the minimization of environmental and climate footprint. 
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  Cooperate on Environmental, Social, and Governance (ESG) standards and assessments and coordinate in international fora, including: 
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    Alignment with international mineral pricing. 
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    Strengthening supply chain transparency and promoting market recognition. 
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    Improving policy alignment with high regard for worker conditions and worker safety.
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    Leveraging market opportunities for EU and Australian industry players with strong mining credentials. 

Next Steps 

The partnership does not create legally binding rights under international or domestic law; the Memorandum only intends to ensure mutual protection of each other's interests on critical and strategic minerals. Within six months from the signing date of this Memorandum, both the EU and Australia envisage developing a roadmap that would include specific actions to start cooperation with each other. 

While you’re here…

Partnership between countries like this can present new deal flow opportunities for impact investors and lenders in private markets, as companies involved in the clean energy transition supply chain may seek additional capital to take advantage of new international cooperation. 

However, identifying opportunities before their competitors is a major data challenge for private credit and equity firms. This is an area where Auquan can help. 

Auquan uses advanced AI to generate material insights on any entity worldwide — public or private — and fine-tuned for your individual investment and lending workflows. 

Let’s explore how Auquan can help you and your team eliminate tedious and time-consuming manual data work and focus more on what you do best: making strategic decisions ahead of the market.