The Albanese Government has announced new details of its $1.2 billion Critical Minerals Strategic Reserve which will secure the supply of key minerals vital for Australia's economy, national security and Future Made in Australia ambitions.
Treasurer Jim Chalmers will brief Australia's allies and trading partners on these new details in Washington DC this week. This follows Resources Minister Madeleine King's engagement at G7+ meetings in Toronto late last year.
Australia's abundant supply of critical minerals will be essential for global supply chains and for strengthening economic partnerships with other nations, and that is what the Treasurer's visit to the United States is working towards.
The first minerals to be the focus of the Strategic Reserve will be antimony, gallium and rare earth elements, which are crucial for clean-energy and high-technology manufacturing as well as advanced military equipment.
The Reserve will operate by securing rights to minerals produced in Australia and on-selling those rights to meet demand, giving an added boost to Australia's critical minerals sector and strengthening reliable supply chains for our trading partners.
Rare earths are used to make high-performance permanent magnets, essential inputs to a range of technologies from fighter jets to MRI machines.
Antimony is used in household and commercial batteries, night vision equipment and high-performance flame-retardant materials.
Gallium is a key ingredient for advanced semiconductors used in radar systems and telecommunications.
The Reserve includes $1 billion for transactions to be drawn from the expanded $5 billion Critical Minerals Facility, which provides government-backed loans and equity support for projects. A further $185 million has been allocated for selective stockpiling of minerals, where required, and other implementation costs.
The Reserve will support Australia's collaboration with international partners to diversify critical minerals supply chains, including the United States, Japan, Republic of Korea, Europe, Canada and the UK. The Government will advance consultation with international partners on developing collaborative efforts to maximise the impact of the CMSR on global supply chains.
The Government will bring forward enabling legislation this year to provide Export Finance Australia with additional powers to effectively support the Reserve.
Future transactions under the Reserve will be led out of the Department of Industry, Science and Resources, in close partnership with Export Finance Australia.
The Critical Minerals Strategic Reserve supports Australia's updated Critical Minerals Strategy and follows the landmark agreement signed with the United States last October which will support a pipeline of projects across critical minerals and rare earths valued at around $13 billion.
It also supports Australia's collaboration with allies to diversify critical minerals supply chains, including Canada, Japan, Europe and the UK.
Quotes attributable to Treasurer Jim Chalmers:
"In a rapidly changing world, the Strategic Reserve is all about safeguarding Australia's future prosperity.
"Ensuring we have a reliable reserve of these critical resources will strengthen supply chains and help to stabilise critical minerals markets.
"This means a more reliable supply of the resources we all need for the future.
"The world needs critical minerals - Australia has plenty of them and our critical minerals reserve will help us weather global economic uncertainty and help to boost trade and investment."
Quotes attributable to Minister for Resources Madeleine King:
"The Strategic Reserve will provide vital support for Australian critical minerals mining and processing projects, creating jobs and ensuring Australia is at the centre of efforts to build stable and reliable supply chains for our international partners.
"From defence applications to clean manufacturing, critical minerals are at the heart of our economic and national security.
"Developing the Strategic Reserve is another important step in Australia leading on critical minerals globally.
"The Strategic Reserve's initial focus on antimony, gallium and rare earths will give added certainty to Australian projects, help attract further investment and help the sector deal with potential future market disruptions."
Quotes attributable to Minister for Trade and Tourism, Don Farrell:
"Australia has some of the largest deposits of critical minerals in the world, which are vital to everything from energy, to medicine, and advanced computing technologies.
"The Critical Minerals Strategic Reserve builds on the Albanese Labor Government's work to secure investment in Australia's critical minerals sector, create more high-paid jobs for Australians and deliver a resilient and sustainable critical minerals supply chain.
"Our Government is committed to seizing the new economic opportunities the global energy transition provides, with the critical minerals needed for items like batteries, solar panels and wind turbines, found right under our feet in Australia."
