Canberra, Australia – Germany is deepening its efforts to secure critical raw materials from Australia, with a focus on diversifying supply chains away from China, according to statements made during a visit by German Foreign Minister Johann Wadephul to Canberra today, . The move underscores growing anxieties in Berlin over its reliance on Chinese-processed rare earth elements, a dependence exposed by Beijing’s export restrictions in 2025.
Minister Wadephul, following a meeting with his Australian counterpart Penny Wong, emphasized Australia’s importance as a partner in diversifying Germany’s supply of critical minerals. “Your country is for us an important partner in the diversification of our supply chains,” he stated. He specifically highlighted the importance of securing access to materials like lithium, crucial for the production of electric vehicle batteries, and rare earth elements used in a wide range of high-tech applications.
The push for closer ties comes after China imposed export controls on rare earth elements in April 2025, in response to increased tariffs from the United States. According to reports from October 2025, the restrictions caused production delays for many German companies, which source 92% of their magnets from China. While imports of permanent magnets returned to pre-restriction levels by July 2025, the incident highlighted the vulnerability of German industry to potential disruptions in the supply of these essential materials.
Germany’s dependence on China for rare earth elements is substantial, with China accounting for nearly 70% of global extraction and 90% of processing. The German government has acknowledged shortcomings in its raw materials policy that have led to this over-reliance. Developing domestic mining and processing capabilities within the EU is considered “virtually impossible” in the coming years due to technological limitations, environmental regulations, and bureaucratic hurdles.
Australia is a key potential alternative source, particularly for lithium. The country hosts the world’s largest hard rock lithium mine in Greenbushes, Western Australia, producing approximately 20% of global supply. This lithium is a vital component in batteries for electric vehicles and smartphones. Australia also possesses significant reserves of rare earth elements, including neodymium and terbium, essential for high-performance magnets.
Minister Wadephul acknowledged that securing these resources will come at a cost. “We have to be prepared to put money on the table, because the development of these raw materials is sometimes costly,” he said. “But at the same time, we know that Germany is urgently dependent on such raw materials.”
The discussions between Wadephul and Wong also focused on the potential for a free trade agreement between the European Union and Australia. Negotiations stalled in 2023 due to disagreements over agricultural imports, but both ministers expressed hope for a swift resolution. Wong stated that an agreement would be particularly valuable “in a time when we are seeing not only challenges, but also profound changes and upheavals around the world.” Wadephul echoed this sentiment, stating that removing trade barriers would benefit both the EU and Australia.
The German initiative is part of a broader international effort to reduce reliance on Chinese dominance in the critical minerals sector. A partnership involving the United States, the European Union, Japan, and Australia is actively seeking to diversify supply chains and promote alternative sources. Japan, for example, has dispatched a research vessel to the Pacific Ocean to explore the feasibility of seabed mining for rare earth elements, a move also aimed at lessening dependence on China.
The European Commission, under President Ursula von der Leyen, has adopted a more assertive stance towards China, recognizing the strategic importance of securing access to critical raw materials. This shift was formalized in the European Economic Security Strategy released in June 2023, which identified supply chain vulnerabilities as a key area of concern. The 2024 European Parliament elections, which saw gains for far-right parties, are expected to introduce further complexity into the EU’s approach to China, potentially leading to more varied perspectives on policy.
The situation highlights the growing global competition for access to critical minerals, essential for the transition to a green economy and the development of advanced technologies. Germany’s pursuit of closer ties with Australia represents a significant step in its efforts to mitigate risks and ensure a more secure supply of these vital resources.
