New Caledonia has signed a strategic partnership with the European Union aimed at revitalising its struggling nickel industry. The agreement was formalised in the capital, Nouméa, and seeks to strengthen ties with European supply chains, although the necessary funding and industrial projects are still pending.
The memorandum of understanding covers cooperation on raw materials, cleaner production, and investment, with the EU looking to diversify its mineral sources crucial for industry. Signatories included the European Commission’s executive vice-president Stéphane Séjourné and New Caledonia’s President Milakulo Tukumuli, along with Alcide Ponga, the official responsible for nickel.
During a speech in the territory’s Congress, Séjourné stated that New Caledonia could become a vital part of Europe’s efforts to ensure a steady supply of nickel, especially for the battery sector. He reassured that the partnership would be non-exclusive, allowing New Caledonia to retain control over its resources, noting that fifteen other nations have similar agreements with the EU.
The partnership presents broader commercial prospects for New Caledonia and support for modernising its nickel industry, which is grappling with high energy costs and competitive challenges. For the EU, it is part of a strategy to strengthen industrial independence and reduce reliance on China for essential supplies.
While the agreement sets a cooperative framework, it does not guarantee immediate investment or the purchase of nickel. A detailed roadmap outlining priority projects and potential funding sources is expected to be developed within six months. Emphasis will be placed on reducing production’s carbon footprint, which could help lower operating costs and appeal to eco-conscious buyers.
However, immediate solutions for New Caledonia’s three nickel plants remain unclear. The local government insists that a clearly defined nickel strategy and willing investors are crucial for the sector’s future.
Political divisions have surfaced over the partnership. The pro-independence Kanaky NC group boycotted the Congress session, arguing that decisions should involve local stakeholders. They are open to a European partnership but seek a nickel strategy developed in consultation with various provincial and industry representatives.
The anti-independence Rassemblement-LR labelled the boycott a “political blunder,” while loyalists welcomed the EU’s outreach as a positive development. Furthermore, the European Commission is proposing to double its budget for overseas territories to €1 billion for 2028–2034, which is still subject to negotiation.
