Australia-EU trade deal inches closer amid minerals talks with Germany

Australia and Germany will work together more closely to bolster critical minerals supply chains, as a trade deal between Australian and Europe appears nearer to realisation. 

By AAP & CBA Newsroom

5 February 2026

German Foreign Minister Dr Johann Wadephul (right) and Australian Foreign Minister Penny Wong speak to the media during a visit to Australia, at Parliament House in Canberra, Thursday, February 5, 2026.

Key points

  • Australia and Germany agreed to deepen co-operation on critical minerals, with an emphasis on diversifying supply chains.
  • Both sides signalled renewed momentum on the Australia–EU free trade agreement, with Don Farrell expected to meet his European counterpart ahead of Ursula von der Leyen’s visit.
  • Agriculture and product naming rules remain the key obstacles, but negotiators say talks are “a lot closer” than in 2023.

Top diplomats from Australia and Germany have hinted at progress on a long-stalled free trade agreement with Europe while agreeing to closer co-operation on critical minerals, energy, cyber security and climate change.

During talks in Canberra, the foreign ministers for both countries agreed to work more closely together to bolster critical minerals supply chains, which are currently dominated by China. 

Germany is a major user of rare earths like lithium which are used in car manufacturing, defence technologies and renewable energy - elements which Australia has in spades.

"The central issue of the talks here is a closer and important co-operation in the field of critical raw materials, such as rare earths. And that is a question of economic security," German foreign minister Johann Wadephul told reporters in Canberra. 

"We must diversify our supply chains, and we must cooperate as closely as possible," he said.

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