Australia’s $28 billion investment in critical minerals aims to bolster the country’s domestic processing capability and reduce reliance on concentrated international markets.
Speaking at the National Security College at the Australian National University, Federal Resources Minister Madeleine King emphasised Australia’s responsibility to take a leading role in developing resilient critical minerals supply chains amid growing geopolitical tensions and increasing export restrictions.
King said Australia had committed one of the largest financial support packages anywhere in the world to the sector, with the $28 billion investment aimed at rebuilding domestic processing and refining capability.
“Australia’s response has been to commit the nation to developing a critical minerals and rare earths industry that captures more value and builds sovereign capability and an enduring position as a world leader,” King said.
“If Australia is to capture more value, we need to move further down the value chain. The value, and the leverage, lie in the processing and refining – and increasingly in the systems, data and technologies that sit around them.”
King also highlighted Australia’s growing international role, noting the country’s participation in the expanded G7 Critical Minerals Production Alliance alongside partnerships with the United States, Japan and Canada to strengthen diversified supply chains.
Several projects are supporting the government’s strategy, with King pointing to Victory Metals’ rare earths pilot processing facility in Perth, the gallium production facility at Alcoa’s Wagerup alumina refinery in Western Australia, and the recently supported Arafura Nolans Rare Earths Project near Alice Springs.
The Wagerup gallium facility is expected to produce around 100 tonnes annually, according to King, which she said is about 10 per cent of global demand, helping address supply disruptions following China’s export controls on gallium introduced in 2023.
King said Australia was working with international partners to create new sovereign capability in response to those market changes.
“We need to help shape the next generation of critical minerals markets and the trading systems that underpin them, King said.
According to King, while Australia could not compete across every mineral or every stage of processing, strategic investment and international partnerships would be essential to building resilient supply chains and securing Australia’s long-term economic and national security interests.
“Our task is to be deliberate about where we invest, where we partner, and how we position ourselves in a system that is increasingly contested,” King said.
“Ultimately, this is not just about resources. It is about how countries manage dependence and build resilience in a more uncertain world. Critical minerals and rare earths sit at the centre of that challenge.”
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