The Economic Contribution of the Vertically Integrated Australian Aluminium Industry report, commissioned by the Australian Aluminium Council, has outlined how the sector—one of the few globally with a complete mine-to-market supply chain—generates more than AUD 18 billion annually and provides over 20,700 direct and 55,000 indirect jobs.
However, the report also warned that without swift action to address energy supply issues, excessive regulation, and access to critical minerals, the industry’s sustainability is at risk.
According to Aluminium Council CEO Marghanita Johnson, Australia’s aluminium industry is vulnerable to supply chain disruptions that could severely impact both local communities and the national economy.
“Australia is one of the very few countries anywhere in the world with a complete mine-to-market aluminium supply chain. It’s a remarkable achievement by generations of Australians, but their legacy is now at risk from disruptions caused by challenges in the energy transition, uncertain environmental approvals, and uneven global competition,” Johnson stated.
The report emphasised aluminium’s crucial role in Australia’s economy, particularly as the world moves toward greener technologies, such as solar panels, electric vehicles, and batteries, which depend on aluminium components.
The industry’s workforce, predominantly located in regional areas, enjoys pay rates 60% higher than the national manufacturing average.
To secure the future of the aluminium sector, the report recommends four key policy actions:
- Streamlining environmental regulations: Implementing timely, clear, and consistent regulatory processes across jurisdictions to ensure bauxite resources remain accessible and that critical infrastructure for energy transition is delivered on time.
- Supporting decarbonisation: Coordinating energy planning across jurisdictions to foster the development of green metals and ensure that the industry can continue to transition to sustainable practices.
- Designating aluminium as a critical mineral: Adding bauxite, alumina, and aluminium to Australia’s critical minerals list would help streamline regulations, attract international investment, and address growing geopolitical and sovereign risks.
- Maintaining fair trade protections: Ensuring Australian manufacturers are shielded from unfair international trade practices, such as dumping and subsidisation, while addressing anti-circumvention practices to protect local markets.
With the right settings, the industry can continue to play a pivotal role in the national economy and the country’s industrial landscape, just as it has done since 1955,” Johnson said.
