Australian Government announces $2b critical minerals boost

Prime Minister Anthony Albanese.
Prime Minister Anthony Albanese.

The Federal Government has announced a $2b expansion in critical minerals financing, solidifying Australia’s position as a world leading provider and helping the transition to net zero.

Critical minerals, including rare earths, are the building-blocks for a clean energy future and are essential to achieving Australia’s energy transition.

This expansion will double the capacity of the critical minerals facility to finance Australian critical minerals mining and processing projects.

Further, the expansion takes the Government’s investments in Australian resources to $6b.

Prime Minister Anthony Albanese says Australians will benefit from this investment.

“Australians will benefit through this investment in critical minerals, through technology, skills, jobs and economic gains,” he said.

“Australia is committed to building sustainable and secure critical minerals supply chains with the United States. This is central to building a clean energy future and delivering economic growth.

“The expansion of the critical minerals facility will help build supply chains with the United States and support our shared clean energy, manufacturing and defence ambitions.”

Mr Albanese and Federal Resources Minister Madeleine King announced the $2b expansion surrounded by Australian and US industry leaders after the inaugural meeting of the Australia-United States Taskforce on Critical Minerals.

The taskforce is an important component of building the alliance with the United States and delivers on commitments made by US President Joe Biden and Mr Albanese at Hiroshima earlier in the year.

Cooperation with the United States on critical minerals is central to the Climate, Critical Minerals and Clean Energy Transformation Compact. The Compact affirms the position of climate and clean energy as the third pillar of Australia’s alliance with the United States.

Minister King commented on the expansion.

“The Australian-United States Taskforce on Critical Minerals will be a key part of progressing our work under the Compact,” she said.

“This week we agreed on priority areas of work and immediate actions such as joint supply chain mapping and deeper cooperation between our science agencies on critical minerals.

“The road to net zero runs through Australia’s resources sector.”