$2 billion critical minerals boost crucial to energy transition

Media release

Prime Minister, Minister for Resources

25 October 2023

The Albanese Government has announced a $2 billion expansion in critical minerals financing, which will solidify Australia's position as a world leading provider, help the transition to net zero, boost the economy and support more jobs and opportunities for Australians.

Critical minerals, including rare earths, are the building-blocks for a clean energy future, and are essential to achieving Australia's energy transition. This significant commitment will double the capacity of the Critical Minerals Facility to finance Australian critical minerals mining and processing projects.

This expansion of the Critical Minerals Facility takes the Government's value-adding investments in Australian resources to $6 billion. Investing in critical minerals financing will bolster the sector in Australia, resulting in technology, skills, jobs and economic benefits for Australians.

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

This Taskforce is an important component of building our Alliance with the United States for the future and delivers on commitments made by President Biden and Prime Minister Albanese at Hiroshima earlier this year.

A sustainable and reliable supply of critical minerals is vital to supporting the Australian and United States' manufacturing sectors. Australia is ideally positioned to provide responsibly-produced and processed critical minerals to fulfil this demand.

Working with international partners is essential for Australia to deliver on emissions reduction targets, decarbonise our economy and build our clean energy industries.

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.

The expanded Critical Minerals Facility supports the Australian Government's Critical Minerals Strategy 2023-2030.

Quotes attributable to Prime Minister Anthony Albanese:

"My Government is committed to transforming Australia into a renewable energy superpower, and harnessing the critical minerals we have at home is crucial to achieving this.

"Australians will benefit through this investment in critical minerals, through technology, skills, jobs and economic gains.

"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 to build supply chains with the United States and support our shared clean energy, manufacturing and defence ambitions."

Quotes attributable to Resources Minister Madeleine King:

"The Australia-United States Taskforce on Critical Minerals will be a key part of progressing our work under the Compact. 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.

"The Australian Government is providing significant support to de-risk investment in Australia's critical minerals sector. The Critical Minerals Facility is a cornerstone of that support, providing finance to strategically significant projects which can crowd in private investment.

"Coupled with our support for processing, we are well positioned to be a world leading provider of critical minerals, including rare earths elements, and to support global efforts on clean energy transformation."