Only a few months into 2025, a fresh round of government funding has given impetus to Australia’s green metals industry.
In late February, the A$1bn ($638m) Green Iron Investment Fund was announced for low-emissions industry manufacturing and supply chains, with a minimum of A$500m open for domestic applicants, as the government aims to establish a multibillion-dollar industry.
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Then, in mid-March, Prime Minister Anthony Albanese announced A$750m for new metals manufacturing technologies as part of the A$1.7bn Future Made in Australia Innovation Fund.
These measures form part of a wider A$5bn package allocated to ‘supercharge’ Australian metals industry.
Australian metal production is already robust, with analysis from Mining Technology’s parent company, GlobalData, confirming that the country remains the world’s largest iron ore producer, with steady growth expected through 2030, propping up the global steelmaking sector.
However, Australia is keen not to be left behind when it comes to traditional mining and refining methods as green metals have increasingly become a pillar of the global energy transition.
The government confirms that: “Green iron markets are growing. Our analysis projects global demand to reach about 852 million tonnes by 2050 in a net-zero scenario.” Global demand for green metals is estimated to increase up to 4.5-times by 2030.
Global competitiveness is propelling the raft of government support but questions remain around funding plans for developing technologies.
Opportunities for Australia in green metals
Economic research supports the competitiveness of Australia’s investments in green metals.
A report by Deloitte and WWF Australia reveals that producing green iron with renewable hydrogen and exporting it to Asia for steel-making is a “natural sweet spot”.
Australian non-profit the Superpower Institute concurs, valuing the annual export of green iron at A$295bn, three-times the current value of iron ore exports.
IEEFA lead global steel analyst Simon Nicholas explains that: “A shift to value-added green iron export will likely be even more important in the context of China’s declining iron ore demand.”
He also cites Vale’s plan to supply green hydrogen for green iron production in Brazil, which has received ‘Global Gateway’ flagship status from the EU, as another key example of the global competition Australia is up against.
Alongside iron, Australian Aluminium Council CEO Marghanita Johnson tells Mining Technology that: “By 2050, worldwide aluminium is expected to nearly double. A growing share will come from recycled sources – driving comparable growth in bauxite mining and alumina refining.”
Major national mining companies are capitalising on this interconnected growth. A key example is Fortescue’s Green Metal Project in the Pilbara region, which uses green hydrogen from a gaseous and liquid hydrogen facility and electric smelting furnace to make green metal. It has an estimated annual production capacity of more than 1,500 tonnes and has been backed by A$2m of state government funding.
The Green Iron Investment Fund also directs up to A$500m to the Whyalla steelworks transformation, Australia’s only rail manufacturer, producing 75% of the nation’s structural steel. The project has been plagued by ownership issues and a lack of capital, but fresh funding could help restart previous plans for low-carbon electric arc furnaces and direct reduced iron (DRI) production at the site.
In comments to Mining Technology, Australian Steel Association CEO David Buchanan said: “The transition to low-carbon steel production is essential for maintaining the competitiveness of Australian steel on the global stage and reducing the industry’s overall environmental impact. Government funding and strategic support are vital to driving this transition.”
Across the green metals subsectors, increased investment also gives rise to job creation. According to the government, Australian steel, iron, alumina and aluminium is linked to 200,000 direct and indirect jobs.
The Australian Council of Trade Unions has also highlighted the potential for 400,000 new jobs by 2040 following the passage of the Future Made in Australia (Production Tax Credit and Other Measures) Bill in 2024, further stimulating the economy.
Future technology timelines
Across the Australian Government’s funding announcements there is a lack of clarity in terms of time frames for green metals development and the strategic use of existing versus innovative technologies. This includes electrification, energy efficiency, carbon capture and the use of hydrogen.
The A$750m funding is forward-looking, with a focus on funding pilot and demonstration projects and unlocking commercial-scale production, all of which are long-term endeavours.
However, this doesn’t address the immediate need for sustainably produce green metals for the energy transition. Australia’s 2030 target to reduce greenhouse gas emissions by 43% by 2005 levels is rapidly approaching – and according to the Australian Renewable Energy Agency (ARENA), steel production, alumina refining and aluminium smelting account for 5% and 6% of domestic carbon dioxide equivalent emissions, respectively.
Prime Minister Albanese has expressed awareness of this urgency, stating: “We have got the resources, the workers and the know-how – the only thing we don’t have is time to waste.” The government’s statement on the Green Iron Investment Fund adds: “Acting now positions Australia to capitalise on its comparative advantage and secure a new, thriving market opportunity.”
“There is no need to wait for new technologies,” asserts Nicholas. “Australia can more immediately focus on using its reserves of high-grade magnetite in DRI-based processes using existing mature technology that is in use at commercial-scale globally already.”
In the aluminium landscape, Johnson affirms that: “Australia has more than 50 years of technical experience in bauxite mining and alumina refining technologies. The industry has signalled its commitment to invest in the decarbonisation of alumina refineries and developing technologies domestically.”
She adds that the industry is waiting for further guidance from ARENA on the application of the announced funding.
To secure green metals dominance, Australia must strike the balance between leveraging existing technologies and making considered investments in promising innovations.
Buchanan confirms that: “Clarity of standards and policy is essential to support the transition to green steel. Clear, consistent and achievable regulations will provide industry participants with the certainty they need to invest in new technologies and infrastructure.”
