Australia Choose the Landmark Approach for Critical Minerals Strategy

This week, Australia unveiled a landmark strategy establishing its approach to collaborating with investors and global partners to establish a critical minerals processing sector for the energy transition.

Australia, a major supplier of rare earths, cobalt, copper, graphite, manganese, and other minerals essential to the global energy shift, provides about half of the world’s lithium. Yet, most of the processing of those minerals takes place in China, where they are used to make components for batteries and magnets that are used in everything from electric cars to missiles.

According to The Grattan Institute, the critical mineral sector could boost Australia’s GDP by more than $400 billion by 2050, outpacing coal, the country’s second-largest export at the time.

To help projects at the local level connect to rising markets in the US, UK, Japan, Korea, India, and the EU, the government will establish a new international initiative to draw investment and development collaborations.

As it develops authoritative competence for important technologies, Australia will track and supervise foreign investment in crucial mining projects to make sure it does not run counter to the interests of the nation.

According to the government, regulations that would permit domestic supply of Australian key minerals for Australian projects are being considered, yet any future strategy must be suited to Australia’s needs and the wider world.

Due to the fact that foreign firms have secured ownership and supply of Australian minerals, particularly lithium and rare earth elements, Australian processors and manufacturers may find it difficult to obtain Australian mineral supplies in the future.

Nevertheless, value-added resources projects will have access to A$1 billion and A$3 billion for renewable and low-emission technologies as part of Australia’s national rebuilding fund. Along with that, it will set aside an additional A$500 million to fund initiatives that fit within its development priorities.