Government pledges $750 million in support of low-emissions metal manufacturing
The Australian Government has announced $750 million in funding to support the development of low-emissions technology and innovation in the metals industry, aiming to expand trade opportunities, and secure local jobs.
The federal government has committed $750 million to help Australian metals manufacturers develop new technologies, reduce emissions, and remain competitive in an evolving global market. The funding is part of the $1.7 billion Future Made in Australia Innovation Fund announced in the 2024/25 Budget.
Prime Minister Anthony Albanese said the investment would support local workers and businesses. “We want to see more Australian workers make more things here. That’s why we are allocating funding to back our local metals manufacturers to seize the opportunities of the future,” he said.
Australia exports over $150 billion worth of alumina, aluminium, iron, and steel annually. The new funding aims to add value to these exports by supporting the development of advanced manufacturing techniques and cleaner production methods.
Administered by the Australian Renewable Energy Agency (ARENA), the funding will be directed towards pilot and demonstration projects designed to lower emissions and improve efficiency. This could help unlock commercial-scale production of green metals using Australian ores and renewable energy sources, opening new trade opportunities and strengthening the domestic supply chain.
Minister for Industry and Science Ed Husic said the initiative is aimed at both job creation and emissions reduction.
“Jobs up and emissions down, that’s our goal and investing in our world-class Australian-made metals know-how is helping make that happen,” Husic said. “The work of our scientists and researchers can sharpen our competitive edge, but getting that work into our mills and smelters quickly is a challenge, and that’s where this investment comes in.”
The funding is part of broader efforts to support manufacturing, with more than $5 billion now committed to strengthening the Australian metals industry. Other key initiatives include:
- Green Aluminium Production Credits
- The Green Iron Investment Fund
- A joint funding package with the South Australian Government to support steelmaking in Whyalla
- Investment in clean energy technology manufacturing, including battery technology, wind turbine production, and hydrogen electrolysers
- Support for low-carbon liquid fuels such as sustainable aviation fuel and renewable diesel
- Legislation for Production Tax Credits for hydrogen and critical minerals
- Funding for major critical minerals and rare earth projects through the Critical Minerals Facility
- Investment in Geoscience Australia to accelerate resource discovery
- Support for hydrogen projects through the Hydrogen Headstart program
- Investment in green metals through the Powering the Regions Fund
“The Albanese Labor Government is backing businesses across the country to seize the opportunities of a Future Made in Australia, powered by low-emissions tech including reliable renewables,” Minister for Climate Change and Energy Chris Bowen said.
With demand for green metals expected to grow, the government aims to position Australian manufacturers to benefit from a changing global market. Minister Husic noted the long-standing role of metal manufacturing in the national economy. “For a century, metal-making has been the spine of Australian industry, and this investment is there so it continues to underpin our economic and national security resilience for decades to come.”
