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Italy and Azerbaijan, beyond energy critical raw materials and AI

Italy and Azerbaijan are expanding their partnership beyond energy to include technology, industry, and critical raw materials. This collaboration aims to enhance European strategic autonomy by diversifying supply chains and leveraging Italy’s geographic and political position. The partnership includes agreements on AI, robotics, digital infrastructure, and strategic storage of raw materials

Italy and Azerbaijan are accelerating bilateral ties, moving beyond their long-standing energy cooperation to build a broader technological and industrial partnership spanning critical raw materials, artificial intelligence, and digital infrastructure.

The big picture: The Meloni government views Baku as a key pillar in its “Global Mediterranean” strategy, positioning Italy to navigate new geopolitical trade routes connecting the Caucasus and the Mediterranean.

  • The milestone: During an event organized by Confindustria alongside Italian and Azerbaijani ministries, Azerbaijani Economy Minister Mikayil Jabbarov visited Rome to cement new deals ahead of the upcoming Italy-Azerbaijan Business Forum in Baku.
  • The trade baseline: Bilateral trade hit €8 billion in 2025, with Italy serving as the primary destination market for Azerbaijani exports. While Italian exports reached €432 million in 2025, economic analysts estimate an untapped growth potential of over €110 million.

Between the lines: Beyond TAP: While energy remains a central pillar—with the Trans Adriatic Pipeline (TAP) delivering nearly 48 billion cubic meters of gas to Italy between 2021 and 2025—both nations are actively diversifying their cooperation.

  • Critical raw materials: A new joint declaration focuses on integrating Italian expertise with Azerbaijani mineral resources across extraction, processing, and recycling.
  • Strategic storage in Venice: Italian Minister of Enterprises Adolfo Urso highlighted Azerbaijan as a potential partner for a proposed European pilot site in Porto Marghera designed for strategic raw material storage to shield industries from supply shocks.
  • High-tech & industrial expansion: Deals encompass AI applied to manufacturing, advanced robotics, digital infrastructure, metallurgy, and mining.
  • Financial backing: Financing tools like the National Made in Italy Fund may support joint supply chain investments.

What they’re saying:

  • Adolfo Urso, Italian Minister of Enterprises and Made in Italy: “We want to build a technological and industrial partnership with Azerbaijan that enhances Italian excellence in the most innovative sectors.”
    • Urso emphasized combining Azerbaijani resources with Italian expertise across the supply chain, while pointing to a potential strategic storage site at Porto Marghera to safeguard European supply chains.
  • Emanuele Orsini, President of Confindustria: “Our exports to Azerbaijan reached 432 million euros in 2025, but we can do much more.”
    • Orsini noted an additional untapped export potential exceeding €110 million and reaffirmed Confindustria’s commitment to supporting long-term industrial projects and synergies ahead of the Baku forum.
  • Antonio Tajani, Italian Foreign Minister: “Azerbaijan is a strategic partner for Italy, both economically and politically.”
    • Tajani stated that the new strategic declaration will provide a solid framework to link Italian processing and recycling skills with Azerbaijani mining potential.

Why it matters: Rome is leveraging its geographic and political position to strengthen European strategic autonomy. By evolving a gas-centric relationship into a broader supply chain partnership, Italy aims to secure access to critical inputs while opening new export and investment avenues for its manufacturing sector.

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