Canada and Australia partner on critical minerals, clean energy, and AI
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Canada and Australia have established a strategic partnership to boost trade and investment cooperation between the two countries. The partnership was formalised during Canadian Prime Minister Mark Carney’s recent visit to Australia, the first bilateral visit by a Canadian Prime Minister in nearly twenty years. It was also the first bilateral visit by a Canadian Prime Minister to Australia in nearly two decades.
In Canberra, Prime Minister Carney met with Australian Prime Minister Anthony Albanese, where they released a joint statement outlining new partnerships in investment, defence and security, critical minerals, energy, and artificial intelligence (AI).
Prime Minister Carney also addressed the Australian Parliament, emphasising the enduring ties between the two nations and their shared potential to foster economic growth through deeper collaboration.
“Canada and Australia are more than friends – we are family, with shared histories, values, and cultures. As Canada forges new partnerships and coalitions abroad, Australia is a natural partner in this mission. By working closely together in energy, critical minerals, investment, defence, and AI to move faster in these endeavours, we will create more opportunities for our people,” said the Rt. Hon. Mark Carney, Prime Minister of Canada.
A partnership on critical minerals and clean energy
Canada welcomed Australia into the Critical Minerals Production Alliance during the visit. This initiative focuses on increasing critical minerals production and processing capacity while diversifying supply chains.
Both nations have extensive mineral reserves vital for defence, manufacturing, and emerging technologies like batteries and AI systems.
Closer collaboration is expected to boost bilateral investment, create high-paying jobs in mining, harness clean energy opportunities, and strengthen security and defence. The leaders also launched a Clean Energy Partnership to catalyse trade and investment, scale up clean energy technologies, and modernise electricity grids.
A focus on defence and security cooperation
Australia is Canada’s largest defence partner in the Indo-Pacific region. The two countries are focused on expanding cooperation across military exercises, procurement, and intelligence sharing. Notably, training of Canadian Armed Forces personnel on the Arctic Over-the-Horizon Radar (A-OTHR) system will begin in Australia in mid-2026.
This system is significant to Canada’s NORAD modernisation plan, enhancing early warning capabilities and surveillance across the Arctic.
Canada and Australia are also exploring mechanisms to facilitate the movement of defence equipment and personnel, including discussions on establishing a Status of Forces Agreement to remove operational barriers.
Prime Ministers Carney and Albanese agreed to advance industrial collaboration to integrate defence sectors, streamline procurement, and foster innovation.
These potential measures include easing export controls,, reciprocal intellectual property sharing, and jointly developing military capabilities.
Talks on security, emergency preparedness, and law enforcement
The partnership focuses on fighting criminal groups, smuggling, foreign intelligence threats, and cybercrime. Increased coordination between the Royal Canadian Mounted Police and the Australian Federal Police will enhance their joint efforts.
The countries also signed a Joint Declaration of Intent to elevate cooperation on emergency management and disaster risk reduction, including collaboration on training, capability development, and innovative technologies such as AI.
Both nations are planning to advance technology and innovation
Both Canada and Australia are scaling rapidly in sovereign AI, computing capabilities, and other emerging technologies. To speed up progress, the leaders welcomed a Memorandum of Understanding (MOU) on AI Safety that facilitates collaboration between their AI safety institutes.
In parallel, Canada, Australia, and India have also signed an agreement to work together on a new agreement to promote cooperation in developing and using artificial intelligence (AI). This agreement is part of the Australia-Canada-India Technology and Innovation Partnership. It aims to connect industries, promote trade missions, and enable private-sector collaboration, including for small and medium-sized enterprises and startups.
The Canada-Australia partnership also includes strengthened collaboration between research funding councils to support joint projects in advanced technologies, clean growth, and Indigenous-led initiatives. A recent MOU between the University of Alberta and the University of Queensland formalises cooperation in defence, space, quantum technologies, AI, advanced manufacturing, and critical minerals.
To address skills shortages in critical minerals production, Canada and Australia launched a Mining Skills Exchange Pilot. This initiative promotes knowledge transfer and workforce capacity-building across both countries.
Investment and economic cooperation
Prime Minister Carney welcomed an MOU to deepen investment cooperation between Canadian pension funds and Australian superannuation funds. This agreement removes barriers to investment and supports nation-building projects in Canada, aligning with Canada’s goal of mobilising $1 trillion in investment over 5 years.
During the visit, the IFM Investors also announced plans to invest up to $10 billion in Canada. The two prime ministers also agreed to launch negotiations to advance the Canada-Australia Tax Treaty, facilitating increased bilateral investment.
Prime Minister Carney emphasised the deep historical, cultural, and democratic ties between Canada and Australia, describing the two nations as “more than friends – we are family.” He highlighted Canada’s focus on attracting massive investment domestically while strengthening partnerships with allies like Australia to build a stronger, more independent economy.
The Indo-Pacific region, home to over half the world’s population and accounting for more than a third of global GDP, remains the fastest-growing economic area worldwide. Canada and Australia’s collaboration in this region is critical to harnessing shared opportunities.
Canada-Aussie environmental and arctic cooperation
Canada and Australia reaffirmed their commitment to polar research and environmental monitoring through an Annual Polar Dialogue and the launch of a Polar Environmental Monitoring Partnership. Both countries support the Antarctic Treaty System and collaborate on climate change research ahead of the International Polar Year 2032-33.
The longstanding wildfire cooperation arrangement enables the sharing of personnel and expertise during severe wildfire seasons. Since 2023, Australia has deployed over 1,200 fire personnel to Canada, while Canadian teams have recently assisted Australia’s fire response efforts.
The two countries committed to increasing cooperation between regulators to ensure access to safe agricultural inputs, including feeds, fertilisers, and pest control technologies. Joint environmental, health, and safety assessments will streamline approvals, strengthen trade, and support food security while protecting people, animals, and the environment.