Budget 2022: $100 million for critical minerals strategy to boost clean energy innovation

On Friday the Albanese government announced that $50.5 million of the federal budget will be allocated to a new national critical minerals strategy to help bolster Australia’s clean energy production, with a further $50 million to be allotted to critical minerals project grants.

The $50.5 million will be allocated over four years to establish the Australian Critical Minerals Research and Development hub. According to The Guardian, the purpose of the hub is “to work with Australian industry to address technical challenges and support international research and development collaborations”.

The hub itself will be in collaboration with the CSIRO, Geoscience Australia and the Australian Nuclear Science and Technology Organisation.

One of the focuses of this program will be lithium. Australia is the leading country in global lithium production, producing 55,000 MT in the last year. GlobalData forecasts predict it will be up 24.5% by the end of 2022. It’s expected that it could become a $14 billion industry between 2033-23 and account for 34,700 jobs by 2030.

“[The government is] committed to supporting the critical minerals sector and new clean technologies to reach our target of net zero, and make our nation an economic powerhouse with a clean energy future,” Prime Minister Anthony Albanese said in a statement.

“Today’s new initiatives will ensure we can create and support local jobs, diversify global supply chains and meet the growing demand for batteries, electric vehicles and clean energy technology.”

Resources Minister Madeleine King also stated that “without Australia’s resources, the world will not reach net zero”.

A further $50 million of the budget will also be allocated to grants for early and mid-stage projects in the critical minerals area. This is in addition to the $50 million allocated to six critical minerals projects back in September.

The project is similar to a hub that was another by the Liberal government earlier this year, however, it seems the funding wasn’t allocated. According to The Guardian, Labor has reframed the project.