Why Australia is made for critical minerals investment

The global demand for critical minerals is accelerating as governments and industry race to build the batteries, semiconductors and clean energy technologies of the future. For investors, it is no longer where these minerals exist, but who can supply them reliably, responsibly and at scale.

Australia is renowned for holding the world’s largest Economic Demonstrated Resources of gold, iron ore, rutile, uranium, vanadium and zinc. It is also ranked in the global top five for a further 14 commodities including lithium, cobalt and rare earths. 

The Australian Government and industry are working together to de-risk and support investment across the entire critical minerals value chain through finance, project facilitation and offtake agreements. This is converting Australia’s resource endowment into investment-ready projects for international investors looking to diversify their supply chains.

A strategy built for the future 

Critical minerals processing is a priority industry under the Australian Government’s Future Made in Australia agenda. The agenda sets out how Australia plans to maximise the economic and industrial benefits of the move to net zero and secure its place in a changing global economic and strategic landscape.

The Australian Government updated its Critical Minerals Strategy 2023–2030 in October 2026. The refreshed strategy recognises the central role of critical minerals to national security, economic resilience and industrial capability. It sets out how Australia can play a larger role in supporting more diverse and secure global supply chains through investment and international partnerships.

The strategy is backed by a A$28 billion commitment to build a critical minerals mining, refining and processing industry; government support to de-risk projects; and a regulatory framework built around strong environmental, social and governance standards that give Australian minerals access to global markets.

The Australian Government’s priority is to move beyond mining by expanding midstream and downstream processing and capability to extract more economic value from its natural resources. For international investors, this presents opportunities across the entire value chain, supported by finance and project facilitation that reduces cost and lowers risk. 

The recently updated Australian Critical Minerals Prospectus is a practical starting point for investors and potential offtakers. It is an interactive tool showcasing 94 investment-ready projects, comprising 58 upstream and 36 midstream projects.

Featured projects meet investment-ready criteria (pre-feasibility study), meaning they have the geological, financial and technical data that investors and off-takers require. Investors can use the prospectus to identify opportunities that match their commodity interests, risk appetite and preferred form of participation. 

A coordinated system of support and capital

The Australian Government offers a range of specialist direct investment vehicles, incentives, grants and other support for critical minerals investors.  

The Critical Minerals Production Tax Incentive offers a 10% refundable tax offset on eligible onshore processing and refining costs. The program is legislated to start on 1 July 2027. In addition, up to A$1 billion of the A$15 billion National Reconstruction Fund is set aside for value-adding in resources. Projects funded to date include Alpha HPA, Liontown Resources and Arafura Rare Earths.

The Critical Minerals Strategic Reserve (CMSR) secures the supply of select critical minerals for Australia and its key international partners. The current priority minerals are antimony, gallium and rare earths. The CMSR has a range of tools the Australian Government can deploy to support strategic projects, including securing rights to offtake. Support for projects depends on the needs and conditions of specific mineral markets. This allows Australia to respond to fast-moving market dynamics and the unique circumstances of different minerals.

Read more about Australia’s financing pathways for critical minerals investors.

Investors don’t need to navigate Australia’s critical minerals landscape alone. A network of government agencies, including Austrade, work together to support projects and connect proponents to capital and partners.

• Export Finance Australia administers the A$5 billion Critical Minerals Facility and is the primary delivery partner for the Critical Minerals Strategic Reserve (CMSR), which secures the supply of select critical minerals for Australia and its key international partners.
• The Department of Industry, Science and Resources leads Australia’s critical minerals policy. Its Critical Minerals Office is the central coordination point, connecting projects with regulators, financing facilities and strategic partners. 
• Geoscience Australia provides world-class geological data and mineral prospectivity mapping to help investors assess opportunities and reduce exploration risk. 
• The Commonwealth Scientific and Industrial Research Organisation (CSIRO) has critical minerals programs supporting exploration, processing and sustainable mining research. 
• ANSTO brings specialised expertise in processing, rare earth separation and metallurgical testing.

The Australian Securities Exchange (ASX) adds further depth. There are more than 300 listed critical minerals companies with a combined market capitalisation exceeding A$480 billion. 

Building resilience through partnership

Australia participates in international forums and initiatives to help shape market rules, norms and global approaches to critical minerals. The nation joined the initial G7 Critical Minerals Production Alliance in 2025 and endorsed a recent declaration by G7 leaders to cooperate on critical minerals, mining, production and the diversification of supply chains. 

It takes a global community to build secure, resilient supply chains. Australia advocates for more transparent, diverse and reliable critical minerals markets through partnerships with the European Union, France, Germany, India, Japan, Korea, the United Kingdom and the United States.

The United States–Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths marked its first year with over A$6 billion in conditional financing support across more than a dozen projects, and a new gallium facility in Western Australia. Read more about the Australia–US critical minerals partnership one year on.

This combination of resource endowment, government backing and international partnership is already translating into real deals. Core Lithium has secured investment from InfraVia, a leading independent European private equity firm. Arafura’s Nolans Rare Earths project received A$84 million from Germany’s Raw Materials Fund, while Lynas Rare Earths has secured offtake agreements with Japan and the US.

Through strong government-to-government relationships and industry-level partnerships, Australia is bringing investors and projects proponents together to accelerate critical minerals opportunities. 

Read more about Australia’s international partnerships to drive the development of resilient critical minerals supply chains.

How Austrade can help

The role of the Australian Trade and Investment Commission (Austrade) is to facilitate industry-level partnerships and support investors to establish and expand in Australia. We do this by

• connecting investors with project proponents, government stakeholders and key industry partners
• facilitating offtake agreements, and debt and equity investment
• using our expertise to help investors through every stage of the investment journey, offering market intelligence, targeted introductions, and site visits to Australia.

For more information on investment opportunities in Australia, contact an Austrade investment specialist.