Government unveils $3 billion green metals strategy to transform Australian industry

The Albanese Government has outlined its ambitious plan to transform Australia into a global green metals powerhouse, with $3 billion in funding aimed at capturing emerging low-carbon export opportunities.

Speaking at the launch of the Superpower Institute’s ‘A Green Iron Plan for Australia’ report in Canberra, Assistant Minister for Productivity, Competition, Charities and Treasury Dr Andrew Leigh (pictured) detailed how the nation could leverage its natural advantages in renewable energy and mineral wealth to develop new low-emissions industries.

The strategy centres on the $1 billion Green Iron Investment Fund, designed to support early-stage projects across the country. Half of this funding – $500 million – has been earmarked for transforming the Whyalla Steelworks, while the remainder is available for projects in regions including the Pilbara and Gladstone.

This investment sits alongside the $1.7 billion Future Made in Australia Innovation Fund, which includes $750 million specifically for green metals development, and a $2 billion commitment to green aluminium production.

“If we’re going to dig it up, we may as well refine it here, sell it for more, and cut emissions in the process,” Dr Leigh said.

The Department of Industry projects green iron demand could reach 852 million tonnes by 2050, representing a significant structural shift in global trade. Australia’s iron ore reserves, renewable energy potential, and stable institutions position it as one of the few countries capable of becoming a low-cost green metals producer.

Major momentum is already building, with BlueScope, BHP and Rio Tinto announcing plans for a joint green iron pilot plant producing 30,000-40,000 tonnes annually by 2028.

The government has also legislated a Guarantee of Origin scheme to provide emissions certification for exports, while establishing a ‘Front Door’ service to streamline approvals for major transformational projects.

“Green iron may not yet be a core export, but it could become one – if we get the policy architecture right,” Dr Leigh concluded.

Picture: credit Andrew Leigh/X