Federal Government backs green metals
The Federal Government has announced a $750m investment to drive the development of new technologies that will keep Australia’s metals manufacturing sector competitive on the global stage.
Australia is already a leading exporter of high-quality alumina, aluminium, iron and steel, with metals exports contributing over $150bpa. This funding aims to add further value to the industry by supporting the adoption of low-emissions technologies and advanced manufacturing processes.
The investment is part of the broader $1.7b Future Made in Australia Innovation Fund, unveiled in the 2024-25 Budget. It is designed to accelerate technological breakthroughs, fund pilot and demonstration projects and support innovations that can reduce emissions and modernise manufacturing infrastructure.
A primary objective of the funding is to enable commercial-scale production of green metals, using Australia’s raw materials and renewable energy sources. This initiative is expected to create new trade opportunities, generate jobs and further integrate sustainability into the sector. The funding will be independently administered by the Australian Renewable Energy Agency (ARENA).
This latest commitment builds on the Federal Government’s broader investment in Australian manufacturing, which now exceeds $5b. Among its key initiatives are:
- Green aluminium production credits, supporting lower-emissions aluminium production
- The Green Iron Investment Fund, backing innovation in iron and steelmaking
- A joint package with the South Australian government to secure the future of Whyalla’s steel industry
- Funding for clean energy technology manufacturing, accelerating the development of battery technology, wind turbines and hydrogen electrolysers
- Investment in sustainable aviation fuel and renewable diesel to decarbonise the transport sector
- Legislation to deliver production tax credits for hydrogen and critical minerals
- Funding for major critical minerals and rare earths projects through the Critical Minerals Facility, including support for Iluka and Arafura
- Investment in Geoscience Australia, aimed at fast-tracking the discovery of new resource deposits
- The Hydrogen Headstart program
- Support for green metals development through the Powering the Regions Fund
Prime Minister Anthony Albanese says the funding reflects the government’s commitment to strengthening Australia’s industrial base.
“We want to see more Australian workers making more things here,” he said.
“That’s why we’re backing our local metals manufacturers to seize the opportunities of the future. We’ve got the resources, the workers and the expertise — what we don’t have is time to waste.”
Federal Industry and Science Minister Ed Husic comments on the dual benefits of job creation and emissions reduction.
“Jobs up and emissions down — that’s our goal,” he said.
“We know our scientists and researchers can sharpen Australia’s competitive edge, but getting their work into our mills and smelters is a challenge. That’s where this investment comes in.
“Global demand for green metals is expected to account for a third of the metals market in the coming years. This is an opportunity we cannot afford to miss. Metal-making has been the backbone of Australian industry for a century and this investment will ensure it continues to underpin our economic and national security resilience for decades to come.”
Federal Climate Change and Energy Minister Chris Bowen speaks on the government’s broader strategy to future-proof Australian industry.
“The Federal Government is backing businesses across the country to seize the opportunities of a Future Made in Australia, powered by low-emissions technology and reliable renewables,” he said.
“Helping Australia’s largest industrial emitters — such as alumina refining — capture the benefits of a global clean energy economy, cut fuel costs and remain competitive is central to a Future Made in Australia.”