The Australian federal government has passed new laws to shield the Australian economy from global volatility by establishing a national strategic reserve for fuel, fertiliser, and critical minerals.
The passage of the ‘Export Finance and Insurance Corporation Amendment (Strategic Reserve) Bill 2026’ through Parliament grants the government powers to secure fuel and other strategic materials, including fertiliser.
Under the new laws, Export Finance Australia (EFA) will be empowered to underwrite fuel purchases, ensuring a steady flow of diesel and petrol to Australian farms, homes, and regional businesses during global supply chain disruptions.
Minister for Climate Change and Energy, Chris Bowen, emphasised that while current domestic supplies remain secure, the ongoing global conflict necessitates proactive measures.
“While Australia’s fuel supply outlook remains secure over the near term due to the actions the government has taken to date, we have been clear – the longer this war goes, the worse the impacts will be,” he said.
“We are acting now to prepare and shield Australians from the worst of this ongoing conflict.”
The legislation is specifically designed to provide independent and regional fuel suppliers with the financial confidence to secure additional cargoes, ensuring that local competition remains robust even when international markets are strained.
The new laws also formalise the government’s commitment to establish a Critical Minerals Strategic Reserve (CMSR).
This allows the government to stockpile, sell, and secure rare earth elements and minerals such as antimony and gallium, materials that are vital for defence, advanced manufacturing, and the transition to clean energy.
Minister for Resources and Northern Australia, Madeleine King, stated the reserve would cement Australia’s position as a global leader in stable supply chains.
“Critical minerals and rare earths are at the heart of our economic and national security and are crucial for clean energy technology, advanced manufacturing and defence applications,” she said.
Minister for Trade and Tourism, Don Farrell, added that the reserve would capitalise on a golden opportunity by boosting onshore processing.
By strengthening ties with key allies, including the US, Japan, and the UK, the reserve aims to diversify global supply chains while creating high-paid, secure jobs for Australians.
The initial focus of the mineral reserve will target elements crucial for high-tech manufacturing, such as antimony, gallium and rare earth elements, which are crucial for clean-energy and advanced manufacturing.
