Australia revamps critical minerals strategy, sharpens focus on refining

Australia is refreshing its critical ​minerals strategy to place ​greater emphasis on refining and ‌processing, ​Resources Minister Madeleine King said on Tuesday, as competition for investment intensifies and supply-chain concerns ‌persist. King said the revised strategy would guide the next phase of the industry's development, with a sharper focus on capturing "more economic and strategic ‌value".

"It places greater emphasis on processing and refining critical minerals. Particularly ‌where Australia has, or can develop, a comparative advantage," she said. Australia is one of the world's largest suppliers of critical minerals, including rare earths used in ⁠defence ​and renewable energy. ⁠However, China dominates the complex and environmentally challenging refining stage of the supply chain.

Western ⁠nations are seeking to expand their critical minerals capabilities and diversify supplies ​as they move to reduce reliance on China for materials essential ⁠to the energy transition and national security. Since the government released Australia's original critical minerals ⁠strategy ​in 2023, market conditions have become more difficult, competition for investment has intensified and supply-chain vulnerabilities have remained a concern, ⁠King said.

"The strategy will ensure Australia remains focused on areas where we can ⁠create the ⁠greatest long-term value," she said, adding that growth in the sector "won't be a solo endeavour".