The numbers behind Australia’s critical minerals drive

It might surprise you to learn that Australia is the world’s top producer of lithium, holding more than a quarter of global resources in the metal which is a key ingredient in the manufacture of batteries. 

Australia is also number one in rutile, a versatile material used in many everyday products including plastics and paints, and a top 5 producer of nickel, cobalt, zircon, manganese, and rare earths. 

These critical metals and minerals are in high demand due to their importance to the clean energy transition. The market size for these raw materials has doubled over the five years to 2022, reaching $320 billion, according to the International Energy Agency.

In that backdrop, it’s no surprise that the federal government is looking to leverage the nation’s wealth in these resources. It’s $22.7 billion “Future Made in Australia” plan aims to support the growth of a downstream processing and manufacturing industry that can supply growing global demand for clean energy technologies. 

The strategy is not without its risks. Prices have been volatile for many of these minerals and there’s always the chance that technological developments will reduce the reliance on any particular material in the manufacturing process. 

“Australia is well placed with our abundance of critical minerals and skills and experience in mining. But the transition will not be smooth and hence the pathway for the development and supply of these minerals will likely take a few twists and turns,” says Andrew Strongman, Head of Mining and Metals at Westpac Institutional Bank. 

“Westpac is continuing to work with companies as they navigate the ever-changing risk environment in pursuit of the growth required,” he adds. 

This infographic from Westpac Institutional Bank puts the scale of the opportunity in critical minerals into perspective:

Infographic: Future prospects for Australia’s transition minerals