“If we hang back,the chance for a new generation of jobs and prosperity will pass us by – and we’ll be poorer and more vulnerable as a consequence,” Chalmers said.
Despite this call for urgent action,most of the funds will not become available until mid-2027 and will be spread over a decade,highlighting the challenge for the government’s homegrown vision. These technically challenging industries are starting from scratch and face stiff international competition and criticism from economists,who warn against propping up industries at a cost to taxpayers.
Critical minerals
The budget estimates the government will hand out $7 billion in tax credits for processing and refining any of the 31 minerals on Australia’s critical list,many of which are used in the production of clean energy products like solar panels,batteries,electric vehicles and wind turbines.
Australia has some of the world’s biggest known reserves of critical minerals and is among the top global producer of nickel,cobalt,manganese ore and rare earths.
But after decades of strategic investment to boost its local industries,China has established a near-monopoly on processing these minerals to make them suitable for manufacturing.