European manufacturing looks to Australia for critical minerals expertise
Europe is intensifying efforts to secure reliable supplies of critical minerals, turning increasingly to Australia as it seeks to reduce dependence on China and strengthen its industrial base.
Traditionally resource-poor, the continent has been seen as lagging in the global race for minerals essential to sectors such as electric vehicles, defence, construction and advanced computing.
In response, European governments and industry are forging closer ties with Australian producers. One major example is ASX-listed Vulcan Energy, which has begun construction of a lithium processing facility near Frankfurt. The first stage of its Lionheart project is expected to produce 24,000 tonnes of lithium hydroxide annually. This is enough to supply around 500,000 electric vehicle batteries by 2028.
Vulcan’s approach differs from traditional lithium extraction methods. Instead of evaporation, it uses electrolysis to extract lithium from geothermal brine, while simultaneously generating renewable energy. This integrated process is designed to lower both costs and emissions, a key advantage in Europe’s push for sustainable supply chains.
Significant investment reflects the strategic importance of such projects. Automotive giant Stellantis holds a stake in Lionheart, while German and European financial institutions have committed substantial funding. Meanwhile, policy initiatives and trade agreements including tariff-free access for Australian minerals are supporting supply diversification.
While Europe may have been slower to act, shifting geopolitical and energy realities are driving urgency. As it pursues greater resilience, Europe is expected to continue relying on partnerships with resource-rich countries like Australia to secure critical mineral supply.