Top diplomats from Australia and Germany have hinted at progress on a long-stalled free trade agreement with Europe while agreeing to closer cooperation 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.
Foreign Minister Penny Wong said so-called "middle powers" like Australia and Germany needed to work together amid global uncertainty.
"As middle powers, we want to contribute to a world where no country dominates and no country is dominated," she said, speaking alongside Dr Wadephul.
"Middle powers are active. Middle powers are ambitious."
Both leaders also discussed the years-long negotiations over an Australia-EU free trade deal, which appear to be making progress.
Plans are being drawn up for Trade Minister Don Farrell to meet his European counterpart before European Commission president Ursula von der Leyen travels to Australia in the coming weeks.
Dr Wadephul said his country would be "constructive and positive" in the negotiations.
"These negotiations now have to be had, particularly in the agricultural sector. They are challenging, which is not surprising," he said.
Australia has been trying to strike a free trade deal with Europe for the best part of a decade, but disputes over naming conventions for products like feta cheese and prosecco have proved to be major stumbling blocks.
Those disagreements caused talks to collapse in 2023, but they have now resumed.
"It is important to have another go, and I think we'll be successful," Dr Wadephul said.
Senator Farrell, who is leading the talks on the Australian side, said there had been good progress on the deal.
"We are a lot closer," he told reporters in brief remarks on Tuesday.
