Australia's Critical Minerals List

Selection Criteria for Australia's Critical Minerals

The Australian Government's assessment of mineral criticality differs from the approaches used by the United States and European Union in a key respect: it considers not only supply risk and economic importance but also Australia's potential to contribute to global supply chain diversification. A mineral may be designated as critical in Australia even if Australia itself faces limited supply risk, provided that the mineral is globally supply-constrained and Australia possesses significant geological resources that could be developed to serve allied nations.

This outward-looking approach reflects Australia's strategic interest in positioning itself as a trusted, reliable, and responsible supplier to markets that are actively seeking alternatives to Chinese-dominated supply chains. By designating a broad set of minerals as critical, the Australian Government signals to investors, partner governments, and project developers that these minerals are policy priorities eligible for government support, including concessional financing, streamlined approvals, and inclusion in bilateral partnership programs.

The list is reviewed by the Department of Industry, Science and Resources in consultation with Geoscience Australia, the Department of Foreign Affairs and Trade, and the Department of Defence. The review considers evolving technology demand, geopolitical developments, new geological discoveries, and feedback from industry and partner governments. While there is no legislated review schedule comparable to the U.S. Energy Act mandate, the Australian Government has committed to regular reassessment.

The Complete List of 31 Critical Minerals

Mineral	Australia's Global Position	Key Applications
Aluminium/bauxite	Largest bauxite producer globally	Aerospace, packaging, EVs
Antimony	Small producer, significant resources	Flame retardants, batteries
Beryllium	Limited production, exploration stage	Aerospace alloys, defense
Bismuth	By-product potential from existing mines	Pharmaceuticals, alloys
Chromium	Limited production, resources identified	Stainless steel, superalloys
Cobalt	Third-largest producer globally	Batteries, superalloys, catalysts
Gallium	By-product recovery potential	Semiconductors, LEDs, 5G
Germanium	Limited production, by-product potential	Fiber optics, IR optics, solar
Graphite	Growing production, major resources	Battery anodes, refractories
Hafnium	By-product of zirconium production	Nuclear reactors, superalloys
Helium	Emerging producer from gas fields	MRI, semiconductors, research
Indium	By-product recovery potential	Touchscreens, solar cells
Lithium	Largest producer globally	EV batteries, grid storage
Magnesium	Limited production, significant resources	Lightweight alloys, steel
Manganese	Third-largest producer globally	Steel production, batteries
Niobium	Exploration and development stage	High-strength steel alloys
Platinum group metals	Small producer, growing exploration	Catalysts, fuel cells, hydrogen
Rare earth elements	Fourth-largest producer globally	Magnets, electronics, defense
Rhenium	By-product potential	Jet engines, catalysts
Scandium	Significant deposits in NSW, Queensland	Aluminum alloys, fuel cells
Selenium	By-product of copper refining	Solar cells, electronics
Silicon	Limited production, abundant quartz	Solar, semiconductors, alloys
Tantalum	Major producer, Greenbushes region	Capacitors, medical devices
Tellurium	By-product of copper refining	Solar cells, thermoelectrics
Titanium	Major mineral sands producer	Aerospace, medical, pigments
Tungsten	Resources identified, limited production	Cutting tools, defense
Vanadium	Significant resources, emerging production	Steel alloys, flow batteries
Zinc	Second-largest mine producer globally	Galvanizing, batteries
Zirconium	Major mineral sands producer	Nuclear, ceramics, refractories
Nickel	Fifth-largest producer globally	Stainless steel, EV batteries
Copper	Sixth-largest producer globally	Electrical, EVs, renewables

Australia's Production Strengths

Australia occupies a globally dominant or significant position in the production of several minerals on its critical list. It is the world's largest producer of lithium, supplying approximately 47% of global mine output through operations concentrated in Western Australia's Pilbara and Greenbushes regions. Australia is also the world's largest bauxite producer, the second-largest zinc producer, the third-largest manganese and cobalt producer, and the fourth-largest rare earth element producer.

These production positions give Australia substantial leverage in the global critical minerals landscape. Unlike most nations that publish critical minerals lists primarily to address import vulnerabilities, Australia's list reflects an offensive strategy: identifying the minerals where Australian production can fill supply gaps for allied nations while simultaneously building domestic value-addition capabilities. The combination of geological abundance, political stability, strong rule of law, and established mining infrastructure makes Australia an attractive destination for critical mineral investment.

Downstream Processing Ambitions

A central challenge for Australia is the gap between its strength in mining and its weakness in downstream processing. Australia mines vast quantities of lithium, rare earths, and other critical minerals, but the overwhelming majority of this output is exported as raw concentrate or lightly processed material for refining elsewhere, predominantly in China. The critical minerals strategy explicitly aims to close this gap by supporting investment in domestic processing facilities.

Progress is being made on several fronts. The Kwinana lithium hydroxide refinery in Western Australia, developed by Tianqi Lithium, was the first facility outside China to produce battery-grade lithium hydroxide at scale. Iluka Resources is building Australia's first fully integrated rare earth refinery at Eneabba, Western Australia, which will produce separated rare earth oxides suitable for magnet manufacturing. Arafura Resources' Nolans project in the Northern Territory is designed to produce neodymium-praseodymium (NdPr) oxide, the key input for permanent magnets used in electric vehicle motors and wind turbines.

The Australian Government has backed these developments with substantial financial support. The Critical Minerals Facility provides concessional loans and guarantees of up to $4 billion, while the Northern Australia Infrastructure Facility (NAIF) supports enabling infrastructure for critical mineral projects in northern Australia. State governments, particularly Western Australia and Queensland, have added their own incentive programs, including subsidized industrial land, energy infrastructure, and workforce development initiatives.

Investment and Partnership Landscape

Australia's critical minerals sector has attracted significant international investment and partnership activity. The Australia-United States Climate, Critical Minerals, and Clean Energy Transformation Compact, signed in 2023, provides a framework for bilateral cooperation on critical minerals supply chains and ensures that Australian-sourced minerals qualify for U.S. Inflation Reduction Act tax credits. The Quad Critical Minerals Partnership extends this cooperation to Japan and India, focusing on joint supply chain mapping and co-investment in processing capacity.

Japan has been particularly active in securing access to Australian critical minerals, with Japanese companies including Sumitomo, Mitsui, and JOGMEC taking equity stakes in Australian lithium, rare earth, cobalt, and nickel projects. South Korean conglomerates including POSCO, LG, and Samsung SDI have similarly invested in Australian battery material supply chains. European companies are following suit, with entities such as Stellantis, Volkswagen, and Umicore exploring partnerships with Australian producers.