Australia will announce a A$2 billion ($1.3 billion) expansion in critical minerals financing Tuesday as part of its effort to move toward clean energy and boost exports.
The investment will double the capacity of Australia’s Critical Minerals Facility to finance mining and processing projects for materials vital to high-end manufacturing and industry, the government said.
Prime Minister Anthony Albanese and Resources Minister Madeleine King will announce the investment following talks with US officials, including the inaugural meeting of the Australia-United States Taskforce on Critical Minerals.
The issue is a key agenda item for Albanese’s four-day visit to Washington, which includes a meeting with US President Joe Biden.
Australia has some of the world’s largest reserves of lithium, copper and nickel that are vital to green energy, defense materials and other high-tech manufacturing. The center-left Labor government wants to collaborate with Western partners to rapidly ramp up critical-mineral production to help meet soaring global demand.
Part of the appeal to Australia of expanding its critical minerals footprint is to plug an anticipated fiscal shortfall amid waning demand for fossil fuel exports in a decarbonizing world. Australia’s lithium shipments were worth A$20 billion ($12 billion) in the 12 months through June, with government forecasts showing the sector’s earnings could rival that of thermal coal exports by 2028.
Government and mining-industry representatives are also pushing for Australia to develop its critical minerals processing capability, partly to increase revenue but also to weaken China’s grip on global supply chains for processed materials.
King told Bloomberg in October 2022 that while breaking China’s hold on the market was a “pipe dream,” it was important for Australia to at least “provide an alternative source.”
