The Australian government has unveiled its 2024-25 Budget, focusing on backing emerging industries and sectors that will drive economic growth, create well-paid jobs, and secure a Future Made in Australia as the world transitions to a net-zero economy.
A key highlight of the budget is the support for the development of Australia’s rich endowment in critical minerals, along with investments in programs for downstream processing and manufacturing technologies essential for reducing global emissions.
Critical minerals are a key focus of the federal government’s strategy, recognising Australia’s abundant reserves of rare earth elements such as lithium, nickel, cobalt, and silicon.
These minerals are crucial for clean energy technologies like solar panels, wind turbines, and electric vehicle batteries.
To capitalise on this opportunity, the government is investing in various initiatives, including a 10 per cent production tax credit totalling $7 billion over a decade for all 31 critical minerals to drive processing in Australia.
Additionally, there will be funding for pre-feasibility studies to develop critical mineral processing facilities, a critical minerals trade enhancement initiative, and a pilot educational program to strengthen the sector’s capabilities against foreign interference.
Exploration is also a key focus, with significant investments planned to support future resource industries.
This includes funding for Geoscience Australia’s Resourcing Australia’s Prosperity program, which aims to map Australia’s highly prospective regions and critical minerals over 35 years.
There is also continued support for the partnership with the US Geological Survey in the Landsat Next satellite project, which will provide crucial data for mining exploration and environmental management.
The Northern Australia Infrastructure Facility (NAIF) has earmarked $500 million for projects supporting the Critical Minerals Strategy 2023-2030 and a Future Made in Australia.
This includes funding for projects like the Alpha HPA Project near Gladstone and the Arafura Rare Earths Nolans Project near Alice Springs.
The budget also includes funding for a statutory review of the Northern Australia Infrastructure Facility Act 2016, reflecting the government’s commitment to economic growth and population in northern Australia.
Overall, the federal government’s budget focuses on building a Future Made in Australia by supporting critical minerals, investing in exploration, and strengthening the resources sector to create a better future for the nation and its regions.