In a bold move to safeguard Australia’s economic resilience and national interests, the Albanese Labor Government has unveiled plans to establish a Critical Minerals Strategic Reserve—a multi-billion-dollar initiative aimed at securing supply chains and capitalising on the country’s rich mineral resources.
The Reserve will focus on stockpiling and securing access to rare earths and other high-demand critical minerals that are essential to modern industries, including clean energy, advanced manufacturing, and artificial intelligence.
Prime Minister Anthony Albanese announced the policy ahead of the next federal election, positioning it as a strategic buffer against growing global uncertainty and market volatility.
“In a time of global uncertainty, Australia will be stronger and safer by developing our critical national assets to create economic opportunity and resilience.”
Under the plan, a re-elected Labor Government will inject $1.2 billion into the Reserve, including a $1 billion boost to the existing Critical Minerals Facility, lifting the fund’s total to $5 billion. This investment will help domestic producers with upfront capital costs while ensuring that Australia can respond to future trade disruptions with confidence.
Two key mechanisms will underpin the Reserve:
- National Offtake Agreements: The government will enter into voluntary contracts with private firms to acquire or secure the option to purchase critical minerals at set prices.
- Selective Stockpiling: Strategic stockpiles of essential minerals will be created as needed, focusing on resources most critical to national security and key international partnerships.
Resources Minister Madeleine King said the Reserve would support industries central to the government’s “Future Made in Australia” vision.
“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,” she said.
“This means more investment and more jobs for Western Australia.”
In addition to the Reserve, Labor has committed to a $7 billion Production Tax Incentive to further strengthen Australia’s critical minerals industry, especially in regions like WA that host the nation’s largest deposits.
The government says the Reserve will generate revenue over time through the sale of stockpiled minerals to global buyers and trusted partners, and that it will be operational by late 2026, following consultations by a newly formed taskforce.
Labor’s announcement comes as Opposition Leader Peter Dutton proposes redirecting resources sector funding towards a $600 billion nuclear energy scheme—an approach Labor claims would undermine the future of Australia’s critical minerals industry.
“The Strategic Reserve will be a national asset,” Albanese said.
“Our Government will use it to advance Australia’s national interest.”
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