In Australia, the Government has launched a AU$1 billion Green Iron Investment Fund that will boost green iron manufacturing and supply chains by supporting early mover green iron projects and unlocking private investment at scale.
Up to AU$500 million of the Green Iron Investment Fund has been earmarked to support LIBERTY Steel Group’s Whyalla Steelworks transformation in South Australia (SA), shoring up local jobs and helping with the energy transition.
At least AU$500 million will be available to applicants around Australia, and accessible for both existing facilities and greenfield projects that can supercharge Australia’s world-leading iron ore industry by adding more value in Australia.
This, the Government says, “will create extraordinary opportunities for Australian industry where there are a range of green iron and steel ventures underway.”
The competitive Green Iron Investment Fund has been designed in close consultation with industry through the Green Metals Expert Panel.
Labor’s plan for a Future Made in Australia is very clear: we want Australia to make more things here. That’s why my Government is delivering AU$1 billion for our Green Iron Investment Fund. We’ve got the resources, the workers, and the know-how – the only thing we don’t have is time to waste. This investment is good for Australian workers and good for Australian business, said Prime Minister Anthony Albanese.
Creating more value in Australia
Australia is the world’s largest producer of iron ore, earning more than AU$100 billion in export income in 2023-24, with the wider iron and steel sectors supporting over 100,000 direct and indirect jobs.
As well as providing more jobs and value-adding onshore, investment in green iron and steel will secure future demand for Australia’s iron ore as the world moves toward lower-emissions iron and steel – and support global emissions reduction at a massive scale in the process.
Green metals are pivotal for global decarbonization, with iron and steel production responsible for 8 percent of global emissions, with iron accounting for up to 90 percent of these emissions.
The Minerals Institute of Western Australia has found that a single green iron plant could add a cumulative AU$85 billion to gross domestic product (GDP), add AU$2.4 billion in real income per annum, and create 1,540 full-time equivalent jobs.
A 2023 Accenture report suggests a green metals industry could deliver up to AU$122 billion per annum in export revenue to Australia’s economy by 2040.
The Albanese Labor government is delivering a strong future for Australian-made metals and the thousands of workers and families who depend on them.
This comes on top of the Albanese Labor Government’s existing measures to back Australia’s thriving energy and mining sectors:
- AU$2 billion investment in Australian-made aluminium;
- Passing legislation to deliver Production Tax Credits for hydrogen and critical minerals;
- Investment in major critical minerals and rare earths projects through the Critical Minerals Facility including Iluka and Arafura;
- An AU$3.4 billion investment in Geoscience Australia to accelerate the discovery of resources;
- Funding Hydrogen Headstart to catalyze Australia’s hydrogen and clean energy industries.
The Australian Government is backing our green metals producers as the world moves towards net zero. 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 high-skilled workforce. Through this AU$1 billion Fund we’re supporting industrial diversification, productivity, and economic growth, for a Future Made in Australia, said Minister for Industry and Science, Ed Husic.
