Federal Budget boosts for critical minerals and support in the Pacific revealed

Australia’s critical minerals sector will get a boost in next week’s Budget with new backing for start-up projects and research and development.

The Government has also promised a new national critical minerals strategy to set out a clear vision for the sector and make the most of Australia’s reserves of commodities like lithium, copper, nickel and cobalt.

Many of these are vital to low-emissions technologies such as batteries, electric vehicles and solar panels, and the government anticipates demand will increase rapidly. The International Energy Agency has forecast demand for use in eclectic vehicles and batteries could grow 30-fold by 2040.

The Budget on Tuesday will include $50.5 million over four years to establish a critical minerals research and development hub, combining expertise from Geoscience Australia, the CSIRO, the Australian Nuclear Science and Technology Organisation and industry to address technical challenges and support international collaborations.

A further $50 million will be on offer in grants for early- and mid-stage critical minerals projects. And $1 billion from the $15 billion national reconstruction fund will be set aside to back value-adding projects in the resources sector.

Prime Minister Anthony Albanese and Resources Minister Madeleine King said Australia’s critical minerals would be key to achieving net zero emissions not just here, but around the world.

“Australia’s natural resources have powered our nation and we are committed to supporting the critical minerals sector and new clean technologies to reach our target of net zero, and make our nation an economic powerhouse with a clean energy future,” Mr Albanese said.

“Today’s new initiatives will ensure we can create and support local jobs, diversify global supply chains and meet the growing demand for batteries, electric vehicles and clean energy technology.”

Ms King said investing in R&D collaborations, backing projects in their early stages and fast-tracking financing for more developed proposals would all support the sector’s growth.

“The new measures will help bring online new sources of supply, support robust supply chains, and create high-paying regional jobs for Australians while improving Australia’s export resilience,” she said.

This Budget is a major step toward the goal of making Australia stronger and more influential in the world.

It’s anticipated critical minerals will also form part of Mr Albanese’s discussions with Japanese Prime Minister Fumio Kishida in Perth on Saturday.

The Budget next week will also include a $900 million boost to foreign aid for the Pacific, almost doubling what Labor promised at the election, along with increased support for security and infrastructure in the region.

As well, it will create a new Pacific engagement visa to allow 3000 people a year from Pacific Island countries and East Timor to permanently migrate to Australia.

Foreign Minister Penny Wong will foreshadow the new measures in a speech at the University of French Polynesia in Papeete on Friday, saying there is a lot of catching up to do from the position in which the previous government left relations with the region.

“We are working to make Australia a partner of choice for the countries of our region, to ensure our security, our economic strength and to shape the world for the better,” she said.

“This Budget is a major step toward the goal of making Australia stronger and more influential in the world.”