The federal government has announced almost $500 million in funding to boost output of critical minerals, including those used batteries and electric vehicles, Reuters reported.
Prime Minister Scott Morrison unveiled the funding in Western Australia on Wednesday and said the state would become a powerhouse for Australia’s allies.
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“Recent events have underlined that Australia faces its most difficult and dangerous security environment that we have seen in 80 years. The events unfolding in Europe are a reminder of the close relationship between energy security, economic security and national security,” Morrison said.
“China currently dominates around 70 to 80 per cent of global critical minerals production and continues to consolidate its hold over these supply chains. This initiative is designed to address that dominance,” Minister for Industry, Energy and Emissions Reduction Angus Taylor said.
Critical minerals are used in smartphones, computers, rechargeable batteries and electric cars as well as defence and space technology.
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Projects to be funded include the second rare earth separation plant to be built outside China, a battery material refinery and a vanadium processing plant. Funding will also be provided to commercialise government research and bring new companies to market.
Australia produces half the world’s lithium, is the second-largest producer of cobalt, and is the fourth-largest producer of rare earths.
