Why investors can’t ignore Australian critical minerals

With Australia fast becoming the global hub for critical minerals, investors have a unique opportunity to get in early.

From lithium to gallium, Australia is delivering the raw materials powering clean energy, advanced technology and national security worldwide.

Recent international deals highlight the nation’s growing influence. The European Investment Bank (EIB) and the Australian government signed a declaration of intent to support “investment-ready critical minerals projects in Australia”.

“The EU–Australia cooperation on critical raw materials is the evidence of work among like-minded partners for resilient, sustainable supply chains that benefit both our economies and our planet.” EU ambassador to Australia Gabriele Visentin said.

“Against attempts to destabilise the global trade system, including the critical raw materials sector, we seek to provide reliable and joint projects with the Australian government and industry in the minerals sector.”

Private sector activity is equally compelling. Mineral Resources (MinRes) struck a $1.2 billion deal with South Korea’s POSCO, giving the company a 30 per cent stake in MinRes’ lithium mines at Wodgina and Mt Marion.

“This first-of-its-kind investment by a major Korean company into Australian lithium is a milestone for our industry. It signals the growing global demand for Tier 1 hard rock lithium assets and the confidence international partners have in Australia’s ability to meet that demand,” MinRes chair Malcolm Bundey said.

“By supporting the development of new global conversion capacity, this partnership will play an important role in diversifying the global lithium supply chain and strengthen bilateral ties between Australia and Korea in critical minerals.

Homegrown projects are moving fast. Alcoa’s Wagerup gallium refinery, backed by the Australia–US critical minerals agreement, will produce 10 per cent of the world’s gallium.

“This opportunity will see us as Alcoa to further value add from the bauxite that Alcoa already mine, to further use alumina here,” Alcoa Australia president and vice president operations – Australia Elsabe Muller said. “Also into aluminum, by then further extracting the gallium that actually is naturally found in the bauxite deposits. This project represents our shared commitment to continue to add value in Australia.”

At the same time, the UK is exploring a bilateral critical minerals deal, making Australia a key global partner in resilient supply chains.

Speaking to Reuters, UK Industry Minister Chris McDonald said the UK is open to bilateral agreements with countries like Australia. He cited that collaboration was already taking place between the two countries through the AUKUS defence pact, in which critical minerals were “very much” part of the relationship.

With government support, international investment and a pipeline of world-class projects, Australia offers investors unparalleled access to the critical minerals sector.