In This Article:
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Dash on to break China's grip on battery materials
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Australia lagging U.S., Canada, EU incentives
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Industry wants subsidies, land access, faster permitting
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Funding, technology pose challenges
By Melanie Burton
MELBOURNE, March 30 (Reuters) - Australia is at risk of losing its head start in critical minerals processing because it has not yet laid down a national strategy, even as other governments are splashing out incentives to grab market share and bolster security.
Supplier of nearly half of the world's lithium, Australia is also the world's third-largest cobalt exporter and a significant producer of rare earths, copper, graphite, manganese and other minerals key to the global energy transition.
However those minerals are largely processed in China, including into materials essential in batteries and magnets for products from electric vehicles to missiles. Western nations want to ease its grip after supply was disrupted during the COVID-19 pandemic.
Consultants say Australia should at least move to producing the chemicals and battery active materials needed for cell manufacturing.
"There's lots of discussion and talk on various domiciles wanting to move forward, but ultimately it's all about actions," Pilbara Minerals CEO Dale Henderson told Reuters.
The Grattan Institute, a think tank, estimates the critical minerals industry could add more than $400 billion to the economy by 2050, a bigger contribution than the coal industry, Australia's no.2 export, today.
Industry executives are calling for a national strategy to speed that development by fast-tracking permitting, offering preferential access to industrial land and subsidies, among other measures.
They want rapid action in light of new competition from the U.S., Canada and the European Union, which have laid out critical minerals strategies including billions of dollars in incentives.
Top global miner BHP Group's CEO Mike Henry told media last month Australia was at risk of other countries moving to "eat our lunch".
AID NEEDED
With Canberra's help, Australia needs to play to its strengths, which include having abundant renewable energy sources and being a reliable supplier to its global partners, consultants say.
The government has provided more than A$250 million ($167 million) in support to Pilbara Minerals, the country's biggest independent lithium miner, which approved a lithium expansion in Western Australia on Tuesday.
CEO Henderson said he was encouraged by federal and state efforts, but added: "Of course, the government could always do more."