The Albanese Labor Government is forging Australia’s future as a global leader in green iron manufacturing with the launch of the $1 billion Green Iron Investment Fund. The initiative aims to strengthen local industry, create jobs, and position Australia as a key player in the world’s transition to low-emissions steel production.
Prime Minister Anthony Albanese said the investment would help Australia harness its natural advantages in iron ore production while securing a more sustainable future for the industry.
“Labor’s plan for a Future Made in Australia is very clear: we want Australia to make more things here,” he said.
“We’ve got the resources, the workers, and the know-how – the only thing we don’t have is time to waste.”
The Green Iron Investment Fund will provide targeted financial support to green iron manufacturing projects, helping unlock large-scale private investment. Up to $500 million has been earmarked for the transformation of the Whyalla steelworks, a move that will shore up local jobs and support the region’s energy transition. The remaining $500 million will be available to projects nationwide, offering both existing facilities and new ventures the opportunity to enhance Australia’s iron ore value chain.
Australia is the world’s largest producer of iron ore, generating over $100 billion in export revenue in 2023-24. The iron and steel sectors support more than 100,000 direct and indirect jobs. However, with iron and steel production responsible for 8% of global emissions, industry leaders have warned that a shift to greener production is necessary to secure the future demand for Australian iron ore.
Minister for Industry and Science Ed Husic emphasised that this fund is a key step in positioning Australia at the forefront of the green metals revolution.
“The Green Iron Investment Fund will enable Australia to take advantage of our existing iron ore supply chain, renewable energy potential, world-class research, and highly skilled workforce,” Husic said.
“Through this $1 billion Fund, we’re supporting industrial diversification, productivity, and economic growth, for a Future Made in Australia.”
Research backs the economic potential of green iron production. The Minerals Institute of Western Australia has found that a single green iron plant could contribute $85 billion to GDP over its lifetime, add $2.4 billion in real income annually, and create more than 1,500 full-time jobs. A separate 2023 Accenture report suggests a green metals industry could generate up to $122 billion per year in export revenue by 2040.
The Green Iron Investment Fund builds on the Albanese Government’s broader strategy to strengthen Australia’s energy and mining sectors. Other key initiatives include a $2 billion investment in Australian-made aluminium, Production Tax Credits for hydrogen and critical minerals, and funding for major rare earths projects.
Additionally, $3.4 billion has been allocated to Geoscience Australia to accelerate resource discovery, while the Hydrogen Headstart program aims to catalyse Australia’s clean energy industry.
With global demand for low-emissions steel rising, Australia’s investment in green iron could prove a game-changer. As Prime Minister Albanese put it:
“This investment is good for Australian workers and good for Australian business.”
Support Our Journalism
The global Indian Diaspora and Australia’s multicultural communities need fair, non-hyphenated, and questioning journalism, packed with on-ground reporting. The Australia Today—with exceptional reporters, columnists, and editors—is doing just that. Sustaining this requires support from wonderful readers like you.
Whether you live in Australia, the United Kingdom, Canada, the United States of America, or India you can take a paid subscription by clicking Patreon
