Australia must “step up” and take a leadership role in the global supply and refining of critical minerals, which are essential for powering the transition to green energy, according to Federal Natural Resources Minister Madeleine King. Speaking at the Raisina Down Under event in Canberra, organized by the Australian Strategic Policy Institute, King emphasized the need for Australia to expand its focus beyond traditional resources like iron ore, coal and gas, to meet the growing global demand for critical minerals and rare earth elements.
King highlighted that Australia’s geological wealth positions it as a key player in the critical minerals sector, but to remain competitive on the global stage, Australian mining and mineral processing firms must receive financial support, such as tax credits. This will enable them to compete with dominant global players, especially as countries like China control much of the processing and refining of minerals like lithium.
“An important part of that is Australia stepping up, stepping up to take a leadership role in the development of critical minerals and rare earths industries globally,” said King. “We need to use our mineral resources for the benefit of our partners, our friends, and industries around the world in this transition.”
The global push for green energy requires critical minerals such as lithium, nickel, cobalt and rare earth elements, which are essential for producing electric vehicle batteries, energy storage systems, and renewable energy technologies like wind turbines. Australia supplies over half the world’s lithium, yet the majority of this resource is processed abroad, particularly in China, a key player in the global mineral supply chain.
King also acknowledged the challenge of balancing high environmental and safety standards with global competition. She noted that while Australian firms are committed to sustainable practices and worker safety, these efforts are not always reflected in the price of minerals from other countries, which can result in higher costs for Australian mining companies. “We should all aspire to have really good environmental practices, worker safety practices,” she stated, adding that these practices may make Australian minerals more expensive on the global market.
Mannat Jaspal, Director of Climate and Energy at the Observer Research Foundation, pointed out that the global market for critical minerals is increasingly concentrated among a few countries. Indonesia supplies half of the world’s nickel, the Democratic Republic of Congo produces half of the world’s cobalt, and China controls 70% of the rare earth elements market. Jaspal emphasized that the concentration of these minerals is more extreme than during the oil and gas era, but Australia’s vast landmass and rich mineral resources, particularly lithium, make it a potential low-cost option for the transition to a net-zero future.
In addition to critical minerals, technological innovation should also be a priority for future Australian partnerships, said Andrew Shearer, Director-General of the Office of National Intelligence. Managing the risks associated with artificial intelligence (AI), as well as advancing quantum computing and biotechnology, will be essential to maintaining Australia’s position in the rapidly evolving global economy.
“Partnerships and coalitions between like-minded countries will become increasingly important, whether it’s around critical minerals or other areas of advanced technology,” Shearer noted.
As the world moves toward a cleaner, greener future, Australia’s role in the critical minerals supply chain will be pivotal, but only if it can overcome the challenges of competition, environmental standards, and technological innovation.
