Prime Minister Anthony Albanese offers $750 million to future-proof Australia’s metals industry

Anthony Albanese will use his pre-election visit to Perth to unveil a $750 million grants scheme aimed at future-proofing Australia’s metals industry by transforming production. The government wants to make sure the sector thrives and demand for Australia’s high-quality metals to grow as overseas markets shift towards imposing carbon tariffs and green metal quotas. It will allocate $750 million from the $1.7 billion Future Made in Australia Innovation Fund for grants for pilot projects, research and development of new technologies, and overhauling plants to make sure metals manufacturers remain globally competitive. Mr Albanese said WA was already positioned to take advantage as a global leader in bauxite, alumina, iron ore and critical minerals – plus having some of the world’s best renewable energy resources. “Our investment in Australian-made green metals will help ensure a secure future for thousands of West Australians employed in resources, mining and metalworking – helping decarbonise critical sectors like alumina, and making sure we add more value right here rather than shipping raw materials offshore,” he said. “We’ve got the resources, the workers, and the know-how – the only thing we don’t have is time to waste.” The European Union has already established a carbon border adjustment mechanism on a variety of emissions-intensive imports including aluminium, steel and iron. Under the rules, importers now have to report emissions for these and selected other products. Starting in 2026, they will attract a carbon tax upon importation. A coalition of European steelmakers, hydrogen companies and car manufacturers is lobbying the EU government to impose green steel tariffs for use in car making. If implemented, this would disadvantage countries that are still producing the metal using fossil fuels. Industry Minister Ed Husic said demand for green metals was expected to account for a third of global markets in the coming years. “This is an opportunity we cannot afford to miss,” he said. “The work of our scientists and researchers can sharpen our competitive edge, but getting that work into our mills and smelters quickly is a challenge, and that’s where this investment comes in. “For a century, metal-making has been the spine of Australian industry, and this investment is there so it continues to underpin our economic and national security resilience for decades to come.” It’s the latest in a string of announcements from the Federal Government backing metal production in Australia. It has promised post-election production credits for green aluminium worth $2 billion – building on the tax breaks already legislated for critical minerals processing and hydrogen – along with a $1 billion green iron investment fund. Half of the iron fund will go to the Whyalla steelworks as part of a joint bailout package with the South Australian government.