Australia: Critical Minerals Profile
Global mining powerhouse and largest lithium producer pursuing downstream processing expansion.
Overview
Australia is a global mining superpower whose mineral wealth underpins a significant share of the world's critical mineral supply. The country is the world's largest producer of lithium from hard rock spodumene mining, the third-largest producer of rare earths, and holds world-class deposits of cobalt, manganese, titanium mineral sands, zirconium, and nickel. Australia's mining sector is highly developed, with sophisticated regulatory frameworks, deep capital markets, and extensive infrastructure connecting mines to export ports. However, Australia has historically exported the vast majority of its minerals as raw or semi-processed concentrates, with downstream refining and manufacturing occurring predominantly in China. Recognizing this vulnerability, the Australian government has launched a Critical Minerals Strategy that prioritizes building domestic midstream and downstream processing capacity to capture more value from the country's mineral wealth.
Key Minerals and Resources
Australia's critical mineral profile is defined by its endowment of lithium, rare earths, cobalt, manganese, zirconium, titanium, nickel, and bauxite. These minerals position the country as a significant global supplier in supply chains spanning the energy transition, advanced manufacturing, and defense sectors.
Mining and Production
Australia's mining industry is among the world's most productive, technologically advanced, and well-capitalized. Lithium production is led by the Greenbushes mine in Western Australia, the world's largest hard rock lithium mine, along with the Pilgangoora, Mt Cattlin, and Wodgina operations. Rare earth production comes from Lynas Rare Earths' Mt Weld mine, the largest non-Chinese rare earth mine globally. Nickel is produced from both sulfide operations in Western Australia's Kambalda district and laterite deposits. Australia's mining regulatory framework is well-established, with state-level mining acts providing clear permitting pathways, and the country benefits from excellent port infrastructure, a skilled workforce, and proximity to Asian markets. New projects under development include cobalt-nickel projects, titanium mineral sands expansion, and manganese mine upgrades.
Policy and Regulation
Australia's Critical Minerals Strategy provides a framework for expanding the country's role from raw mineral exporter to integrated producer of processed materials and precursor chemicals. The strategy is supported by significant government investment through the Critical Minerals Facility, Northern Australia Infrastructure Facility, and Export Finance Australia. Australia has signed critical minerals partnerships with the United States, Japan, South Korea, India, the European Union, and the United Kingdom, making it one of the most sought-after mineral supply partners globally. The country's Foreign Investment Review Board screens investments in critical mineral assets, reflecting concerns about maintaining strategic control over key resources. State-level support includes Western Australia's Future Battery and Critical Minerals Industries Strategy and Queensland's Critical Minerals Strategy, which target specific processing and manufacturing capabilities.
International Partnerships
Australia has established critical mineral partnerships with virtually every major consuming nation, reflecting the country's resource endowment and its strategic alignment with like-minded democracies. Key partnerships include agreements with Japan (the most long-standing), the United States, South Korea, India, the European Union, the United Kingdom, and Germany. Australia is a core member of the Minerals Security Partnership and the Quad (with the U.S., Japan, and India), both of which have critical minerals components. The Australia-Japan economic partnership on critical minerals involves significant Japanese investment in Australian lithium, rare earth, and nickel projects through JOGMEC and private companies. Australia's partnership with India under the Critical Minerals Investment Partnership targets joint development of resources and processing capabilities.
Supply Chain Role
Australia occupies the upstream end of global critical mineral supply chains, providing mined concentrates and partially processed materials to refiners and manufacturers worldwide. The country's vast mineral endowments make it a natural partner for consuming nations seeking to diversify supply away from Chinese-dominated sources. However, Australia's current supply chain role is predominantly extractive, with the majority of mined minerals exported for processing elsewhere. Capturing more downstream value through domestic processing and refining is a central objective of the country's critical minerals strategy, though building these capabilities requires significant investment in processing infrastructure, energy supply, technical workforce development, and market connections with end-use manufacturers.
Related Country Profiles
Explore profiles of other nations that share regional ties or overlapping mineral endowments with Australia.
United States
North AmericaWorld's largest consumer of critical minerals driving reshoring and supply chain diversification policies.
Canada
North AmericaKey allied supplier and emerging processing hub for critical minerals in the Western Hemisphere.
China
East AsiaDominant global producer and processor of most critical minerals with unmatched refining capacity.
European Union
EuropeMajor consumer pursuing strategic autonomy through the Critical Raw Materials Act and diversification targets.
United Kingdom
EuropeHistoric mining nation rebuilding critical mineral capabilities through domestic projects and global partnerships.
Japan
East AsiaHighly import-dependent technology manufacturer leading in strategic stockpiling and recycling innovation.