Funds to build bridge from mining to manufacture

Scott Morrison will release a 10-year plan aimed at dramatically upscaling Australia’s critical mineral and resources sector.

Prime Minister Scott Morrison. Picture: NCA NewsWire / Gaye Gerard

Scott Morrison will release a 10-year plan aimed at dramatically upscaling Australia’s critical mineral and resources sector, amid a global push to create new tech manufacturing supply chains away from China.

The Prime Minister, who will announce the opening of grants under the government’s $1.5bn manufacturing strategy in the NSW Hunter Region on Thursday, will outline his vision to ­unlock Australia’s bounty of critical minerals to manufacture new technologies.

The funding support will be targeted at helping manufacturers scale-up production, commercialise products and assist Australian businesses in tapping global supply chains.

With the US, Japan, Britain, Korea, India and other nations moving towards expanding their sovereign production capacity of electric vehicles, mobile phones and renewable energy systems, Australia is well positioned.

Australia’s reserves of cobalt, lithium, tungsten and titanium are in the top two in the world. The nation is the largest producer of lithium and rutile, and the ­second largest producer of rare earths. Mr Morrison said manufacturing was a key pillar in driving Australia’s COVID-19 economic recovery.

 

“Our Modern Manufacturing Initiative will help position Australia as not just a global leader in the resources sector but also in the manufacturing of the technology used, as well as turning the raw materials into value-added products,” Mr Morrison said.

“(The) funding will help unlock investment from industry to help build manufacturing capability and competitiveness in Australia’s resources sector while taking advantage of a significant global growth sector.

“This investment and this road map will support jobs across Australia, particularly in our ­resource rich regions like the Hunter, Western Australia and central Queensland.”

The resources, technology and critical minerals processing road map says “because the majority of primary ores are shipped overseas for processing, Australia derives a small share of the potential overall benefit”.

“Australia can capture greater benefit from these value chains by undertaking further value adding and manufacturing here,” the road map says.

China has traditionally dominated tech manufacturing, which requires critical minerals and rare earths. Industry Minister Karen Andrews, who is leading the implementation of the manufacturing strategy, said the government would back businesses to “turn ­innovative ideas into high-value products” and support growing Australia’s market share.

“Opportunities outlined in the road map include turning critical minerals into high-value products like batteries and solar cells, as well as technologies and equipment that makes mining more ­efficient and safe,” she said.

Ms Andrews last year told The Australian there were significant opportunities to develop Australia’s battery industry. “It may well be that we don’t end up manufacturing an iPad or an iPhone, but there are components we can look at developing here in Australia where we have the raw materials to be able to do it and have the capability. Clearly batteries are an opportunity for us,” she said.

Businesses will be able to ­access grants of between $1m and $20m, up to 50 per cent of the eligible project expenditure, through the government’s manufacturing fund from Thursday.