The Australian Government has unveiled guidelines for new grants to assist in developing Australia’s critical minerals sector, downstream processing, job creation in regional Australia, and global efforts to achieve net zero emissions.
The Critical Minerals Development Program will award grants ranging from $1 million to $30 million to projects that will strengthen Australia’s sovereignty in critical minerals, which are essential for low-emissions technologies such as electric vehicles, batteries, and solar panels, as well as aerospace and defence applications.
Minister for Resources and Northern Australia Madeleine King stated that the program would help Australia and the world reach their net zero goals by accelerating the growth of Australia’s critical minerals sector.
“The grants program will help Australia become a trusted and stable global supplier of critical minerals and rare earths which are needed to help lower global emissions,” Minister King said.
According to the Minister, the grants will support up to 50 per cent of qualifying expenditure on projects that will assist Australia in expanding its capacity to turn critical minerals into vitally significant technologies such as lithium-ion batteries, rare earth element magnets, semiconductors, and communications components.
“We expect the grants will support projects that will create jobs and investment in regional Australia, while generating further collaboration with Australia’s international partners,” Minister King added.
Demand for low-emissions technologies is forecast to surge over the next three decades, increasing demand for lithium by 40 times, cobalt and graphite by 20 times, and rare earth elements by 7 times, among other things.
Minister King stated that the path to net zero energy passes through Australia’s resources sector.
“We need Australia’s critical minerals if we are to reach net zero,” Minister King added.
Australia produces about half of the world’s lithium, is second in cobalt production, and ranks fourth in rare earths production, according to the Minister.
Applications will be accepted from 17 January until 20 February 2023.
The Australian Government is now evaluating the Critical Minerals Strategy to promote the sector’s sustained expansion and capitalise on the surge in demand for renewable energy technologies.
