The Australian Government will establish a Critical Minerals Strategic Reserve to enhance the nation’s economic resilience and secure its interests in the face of a changing geostrategic environment.
The initiative aims to capitalise on Australia’s vast mineral deposits and meet increasing domestic and global demand.
The reserve will be supported by an initial investment of A$1.2bn, including a A$1bn increase in the existing Critical Minerals Facility, bringing the total investment in the facility to A$5bn.
This funding will help the private sector and international partners with the initial capital costs of new projects.
The government will implement the reserve through national offtake agreements and selective stockpiling, focusing on minerals crucial for Australia’s national security and that of its key partners.
The reserve’s holdings are expected to yield cash flow from global market sales and transactions with strategic partners.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataPrime Minister Anthony Albanese said: “The Strategic Reserve will mean government has the power to purchase, own and sell critical minerals found here in Australia.
“It will mean we can deal with trade and market disruptions from a position of strength. Because Australia will be able to call on an internationally significant quantity of resources in global demand.
“This will be a national asset and our government will use it to advance Australia’s national interest.”
The government’s commitment to the reserve is further underscored by the A$7bn Critical Minerals Production Tax Incentive.
A taskforce will be formed to consult on and finalise the Strategic Reserve’s scope and design, with operations expected in the second half of 2026.
Resources Minister Madeleine King said: “While we will continue to supply the world with critical minerals, it is also important that Australia has access to the critical minerals and rare earths we need for a Future Made in Australia.
“The Strategic Reserve, combined with Production Tax Credits and the expansion of the Critical Minerals Facility, shows the Albanese Government is taking the development of an Australian critical minerals industry seriously. And that means more investment and more jobs for Western Australia [WA].”
In contrast, opposition leader Peter Dutton has proposed cutting all assistance to the sector to finance an A$600bn nuclear scheme, including slashing Production Tax Incentives and the Critical Minerals Facility.
In January 2025, the Cook Government announced funding to research rare earth extraction in WA to establish a new rare earth province in the region.
