Up to 40 per cent of the United States’ supply of critical minerals for EV batteries could be sourced from Australia, after the US granted Australia ‘preferred status’.
Under the US’ recently passed Inflation Reduction Act, 40 per cent of critical minerals value must be sourced from countries with pre-existing free trade agreements with the US, increasing to 80 per cent by 2027.
Minerals Council for Australia Chief Executive Officer, Tania Constable, said the Act would underpin future demand for Australian critical minerals.
“The Inflation Reduction Act is a major step forward for the Australian Government’s manufacturing agenda and will help underpin demand for high-quality Australian battery minerals,” Ms Constable said.
“Driving investment in local processing and manufacturing will also ensure the demand for Australian mined minerals including lithium, cobalt, nickel and copper.
“Importantly, it will also strengthen the case for investment capital into mining.
“Australian mining needs about $20 billion per year to sustain current production.
“If we are going to increase the capacity of existing mines, or open new mines – including in the commodities needed for our global transition to net zero emissions – capital investment will need to be increased by an order of magnitude.
“The Bank of America estimates that US$150 billion per year will be needed in global mining to produce the minerals needed to achieve the global transition to net zero.
“Australia needs to position itself as a competitive destination for this capital in order to realise its full potential.”
