The Federal Government will look to unveil a multi-billion-dollar plan to boost Australia’s green aluminium sector during a visit to Tomago Aluminium, New South Wales today.
The initiative will form part of the Federal Government’s Future Made in Australia bill, which is designed to support industries essential to the nation’s net-zero ambitions.
Under a new proposal, aluminium smelters will receive production credits for each tonne of ‘green aluminium’ produced using renewable energy, with $2 billion allocated to the scheme until 2036.
This proposal is similar federal policies in the past that supported solar panels, green hydrogen and critical minerals.
“Investing in the Australian-made aluminium industry is a massive opportunity — to create well-paid jobs in our regions and suburbs and set Australia up for the future,” Prime Minister Anthony Albanese said, as reported by the ABC.
“We’ve got the resources, the workers, and the know-how – the only thing we don’t have is time to waste.”
Rio Tinto welcomed the announcement, saying an aluminium production credit will help sustain and grow aluminium smelting in Australia while significantly advancing regional communities and the country’s manufacturing capabilities.
“The Australian Government’s commitment shows strong confidence in domestic manufacturing and the nation’s position in the global economy,” Rio Tinto chief executive Australia Kellie Parker said.
“As traditional energy sources for heavy industry become increasingly uncompetitive, today’s announcement is a critical piece in helping future-proof the industry.
“As global industrial customers and consumers increasingly focus on low-carbon products, this support signals Australia’s potential to be a major supplier of the aluminium needed for the global energy transition, creating a foundation for local businesses and manufacturing to thrive.”
The Australian Aluminium Council hailed the announcement as a “globally significant step” towards securing a positive future for Australia’s aluminium industry.
“Competitive energy is the critical foundation that enables Australian businesses to compete internationally,” Australian Aluminium Council chief executive officer Marghanita Johnson said.
“Today’s announcement is an important step in support of the industry’s transition to the competitive, reliable, lower-carbon energy needed for the aluminium industry to secure a sustainable future.”
Aluminium is vital across industries, from construction and vehicles to renewable energy technologies such as solar panels and batteries. It is also essential for defence applications such as armoured vehicles, military aircraft, and naval vessels.
With global aluminium demand expected to double by 2050, Johnson said Australia can lead the transition given its vast bauxite reserves and skilled workforce.
“The natural advantages of our mineral reserves, renewable energy resources, and highly skilled workforce can give us a competitive edge, but only if supported by the right policy frameworks,” Johnson said.
This initiative will assist Australia’s position as a leader in the green energy transition while safeguarding thousands of jobs and bolstering the domestic aluminium value chain.
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.