With a national election looming, the Australian government is throwing everything at ensuring the country maintains its world leading position in the area of critical minerals exploration and development. While adding two new names to its critical minerals list recently, the Australian government is also pouring billions into the funding of tech metals that it believes will solidify the nation’s future as it takes aim at being carbon neutral by 2030.
Australia’s Prime Minister, Scott Morrison, has made no secret of his belief that critical minerals and the country’s adoption of lithium-ion batteries and electric vehicle (EV) technology will play a major role in improving the country’s environmental reputation.
Last month, the federal government has made a wave of new moves as its looks to make critical minerals developments a major plank of its economic and environmental policies in the lead-up to an election. This includes the unveiling of a major package of measures to help unlock the significant potential of Australia’s critical minerals sector.
The measures, which are part of the 2022-23 budget, include a A$200M Accelerator Grants Programme, A$50M to support research and development, and an updated industry strategy. Mr Morrison says Australia’s resources companies are leading the world in developing new critical minerals markets.
“The world is becoming a more uncertain place and we want to secure Australia as a reliable partner for local and global businesses that need the critical minerals we have right here,” he said.
“We’ll dig them up right here. We’ll refine them right here. We’ll look to make the products that use them right here.
“As the global economy changes, there are exciting new growth opportunities emerging in areas such as rare earths and critical minerals that ultimately mean we can deliver a stronger economy for Australia and secure a stronger future.
“Critical minerals are used in more and more essential products. That means there are huge opportunities to backing the Australian critical minerals with programmes like these, to be a partner whose products are high quality and consistent. A partner people can trust to deliver.”
‘Critical minerals powerhouse’
Federal minister for resources and water Keith Pitt said the Accelerator Initiative will provide grants to strategically significant critical minerals projects at the early to mid-stage to fast-track them to market.
“By backing these important projects, we are also driving private sector investment to enhance Australia’s strong international reputation as a reliable supplier of the resources the world needs,” Mr Pitt said.
Mr Pitt said the newly launched 2022 Critical Minerals Strategy, sets out to grow Australia’s critical minerals sector, expand downstream processing, and help meet future global demand.
“The strategy will cement Australia’s position as a leading producer of critical minerals, while contributing to our national security and economic prosperity,” Mr Pitt said.
“Developing and diversifying our resources sector strengthens our national economy, delivering jobs and growth opportunities, especially in regional Australia.
“A strong economy means a strong future for Australia, and resources are a significant contributor to that.
“Our resources and energy exports hit a record high value of A$348.9B and are projected to hit A$379B in 2021-22.
“Australia is blessed with extraordinary reserves of the critical minerals needed by sectors including defence, aerospace, automotive, energy, telecommunications, and agritech.
“We produce around half the world’s lithium, and we are the second-largest producer of cobalt and the fourth-largest producer of rare earths.
“We have the potential to do so much more, and we are taking action to grow Australia into a critical minerals powerhouse.”
Mr Pitt said Australia’s large critical minerals reserves, its technical expertise and track record as a reliable and responsible supplier, enable the sector to respond to increasing global market demand.
“We can also expand into downstream processing and embed Australia in global supply for technology ranging from mobile phones to fighter jets,” Mr Pitt said.
Job creation
Pitt also revealed the government has committed A$50M over three years to establish the virtual National Critical Minerals Research and Development Centre, which will draw together expertise from leading science bodies such as the CSIRO, Geoscience Australia, and the Australian Nuclear Science and Technology Organisation.
“This centre will build Australian capability in critical minerals processing, target technical bottlenecks in strategic supply chains, and drive breakthrough collaborative research,” Mr Pitt said.
“The centre’s projects will help unlock new sources of economically viable critical minerals and diversify supply chains of strategic interest to Australia and our allies.”
The federal government has also announced an A$1.3B Modern Manufacturing Initiative.
The government revealed in March it is providing over A$243M in support for four projects under the Collaboration Stream of the Modern Manufacturing Initiative, which will create over 3,400 jobs over time and cement Australia’s place in the rapidly growing critical minerals, electric vehicle, and battery markets.
This includes:
- A$119.6M for Pure Battery Technologies’ A$399M Western Australian pCAM Hub, in partnership with Poseidon Nickel. The plan will include an integrated nickel manganese cobalt battery material refinery hub in the Kalgoorlie region
- A$49M for a A$367M project led by Australian Vanadium, to process high-grade vanadium from its Meekatharra mine in WA and transported to its Tenindewa plant powered by clean hydrogen from partner ATCO Australia. This highly sought-after critical mineral will then be transformed into energy-storing batteries
- A$30M for Arafura Resources’ A$90.8M Nolans Project near Aileron, in Central Australia, the first of its kind rare earth separation plant in Australia and only the second outside China
- A$45M for Alpha HPA’s A$330M project with Orica to construct a high purity alumina production facility near Gladstone that will help meet the rapidly expanding demand for lithium-ion batteries and LED lights, with more than 300 jobs to be created from this year
New critical minerals
The Australian Government continues to add to its critical minerals lists and has now included two new minerals to the country’s critical minerals list – high purity alumina and silicon.
The government says the two new additions reflect the expanding significance of mineral inputs in strategic applications like semiconductors and electrification.
