Benefits for energy and resources

The Australia-European Union Free Trade Agreement (A-EU FTA) will deliver strong outcomes for Australia's energy and resources sector, including elimination of tariffs on our exports, greater certainty for investors and improved access for service suppliers into the EU. The agreement will also enhance cooperation between Australia and the EU on energy and resources issues.

Tariff elimination on energy and resources

The A-EU FTA will permanently remove all tariffs on Australian energy and resources exports to the EU, including:

• critical minerals, which can face tariffs of up to 5.5 per cent
• lithium hydroxide, which can face a tariff of up to 5.3 per cent
• hydrogen and its carriers, which can face tariffs of up to 5.5 per cent.

EU companies, including battery manufacturers, have indicated that removing tariffs on critical minerals will make Australian exports more competitive in the EU and increase demand.

Greater certainty for investors

Attracting foreign investment is critical to the success of Australia's energy transition and the continued growth of our resources sector. Modern investment rules agreed under the A-EU FTA will provide certainty for investment in both directions.
Australia will also raise its foreign investment screening threshold for private EU investors, adding to the attractiveness of investing in Australian energy and resources projects.

Benefits for energy professionals

Recognising Australia's expertise in energy, the EU has guaranteed better access for eligible Australians to travel to and provide energy distribution consultancy and advisory services.

Enhanced cooperation

Australia and the EU have agreed to enhance cooperation, including in:

• critical minerals
• renewable fuels
• research and development.

The A-EU FTA is another important step in Australia's partnership with the EU on critical minerals, building on the Australia-EU Strategic Partnership on Sustainable Critical Minerals signed in 2024.

Recognising First Nations interests

Based on input from First Nations stakeholders, the A-EU FTA explicitly acknowledges the importance of First Nations people's rights and interests in energy and resources issues in Australia. This reflects the Government's commitment to elevating First Nations peoples' rights and interests in energy and resources. The agreement also preserves the right of Australian governments to implement policies which support First Nations people and organisations.