The Albanese Labor Government will pursue Australia's national interest and boost our economic resilience by establishing a Critical Minerals Strategic Reserve.
Critical minerals and rare earths are essential inputs to the modern and future economy – underpinning the energy transition, high tech manufacturing, AI and the digital economy.
Australia is home to some of the largest critical minerals deposits on earth – just about the whole periodic table of elements. We are uniquely placed to meet the needs of increasing global and domestic demand. The size and sophistication of our mining industry allows us to take maximum advantage of these resources.
Australia is a supporter of free and fair trade and will continue to promote our national interests in a changing geostrategic environment. Increasingly uncertain times call for a new approach to make sure Australia maximises the strategic value of critical minerals.
We need to do more with the natural resources the world needs, and that Australia can provide.
That is why a re-elected Albanese Government will establish a Critical Minerals Strategic Reserve to stand up for Australia's national interest.
The Reserve will build on extensive Australian Government investment in critical minerals through two new mechanisms:
- National Offtake Agreements – through voluntary contractual arrangements the Government will acquire agreed volumes of critical minerals from commercial projects, or establish an option to purchase at a given price, holding security over these assets as part of the Strategic Reserve; and
- Selective stockpiling: the Government will establish Australian stockpiles of certain key critical minerals produced under offtake agreements as required.
The primary consideration for entering into offtake agreements will be securing priority critical minerals for strategic reasons. The Reserve will be focused on a subset of critical minerals that are most important for Australia's national security and the security of our key partners, including rare earths.
As its holdings mature, the Strategic Reserve will generate cash-flow from sales of offtake on global markets and to key partners.
The Strategic Reserve will also accumulate stockpiles of priority minerals when warranted by market conditions and strategic considerations, but it is anticipated that these will be modest and time-limited in most cases.
Minerals held by the Reserve will be made available to domestic industry and key international partners, with the mechanism and allocations to be determined by Government and subject to consultation.
A re-elected Labor Government will make an initial investment of $1.2 billion in the Reserve, including through a $1 billion increase in the existing Critical Minerals Facility. This will take our total investment in the Facility to $5 billion, providing vital support to private sector and international partners with the upfront capital costs of new projects.
This will give confidence to our critical minerals sector to invest and create jobs in Australia, while developing secure supply chains with key international partners.
A Taskforce will be established to consult and finalise the scope and design of the Strategic Reserve in Government,
which is expected to be operational in the second half of 2026.
The creation of the Strategic Reserve and the expansion of the Critical Minerals Facility is supported by Labor's $7 billion Critical Minerals Production Tax Incentive.
While the Government is building Australia's resources sector and critical minerals industry, Peter Dutton is cutting all assistance to this vital sector to fund his $600 billion nuclear scheme.
Peter Dutton will cut Production Tax Incentives and cut the Critical Minerals Facility.
A re-elected Albanese Labor Government will build on the strong foundations of our first term to continue to stand up for Australia and act in our national interest.
Comments attributable to Prime Minister Anthony Albanese:
"In a time of global uncertainty, Australia will be stronger and safer by developing our critical national assets to create economic opportunity and resilience.
"To leverage our natural resources is in our national interest.
"I will ensure that Australia continues to produce and benefit from the resources that are essential to our national interest.
"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."
Comments attributable to Resources Minister Madeleine King:
"Critical minerals and rare earths and essential not only to reducing emissions but also for our security and the security of our key partners.
"While we will continue to supply the world with critical minerals, it's 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."
