The EU’s European Investment Bank (EIB) and the Australian government said in a joint statement on Monday they would deepen cooperation on critical raw materials, as Western powers scramble to cut their reliance on China.

European officials and industry sources say financing remains a key hurdle in the bloc’s efforts to secure its supply chains of strategic minerals. Even the EU’s list of strategic projects receives no financial benefits.

The European Commission is expected to present a wide-ranging economic security package on December 3.

“This declaration is the first step towards enabling the EIB to support the financing of critical minerals projects in Australia,” the statement said.

“[It] furthers existing collaboration between Australia and the EU across the critical raw materials value chain – from exploration and extraction to processing, recycling and innovation.”