From NSW drill rigs to Washington deals: Australia expands its critical minerals reach
Two government announcements on the same day—one in Washington and one in Sydney—signal a coordinated ramp-up of Australia’s role in the global supply of critical minerals, with new exploration funding in NSW complementing a federal investment framework with the United States focused on gallium and rare earth production.
Australia’s critical minerals sector is set for an expansion on both domestic and international fronts following two major government announcements this week.
In Washington, Prime Minister Anthony Albanese and US President Donald Trump signed the United States–Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths, aimed at building a shared supply chain for materials used in defence and advanced technologies.
At the same time, in Sydney, NSW Minister for Natural Resources Courtney Houssos announced $2.5 million in co-investment grants under the Critical Minerals and High-Tech Metals Exploration Program, supporting 29 projects across the state. Combined with industry contributions, the program will deliver around $5 million in exploration activity focused on copper, rare earths and other high-value minerals.
Federal investment to secure supply chains
Under the new framework, both governments will contribute at least USD $1 billion each towards an USD $8.5 billion pipeline of critical minerals projects across the two countries.
Two Australian projects received immediate commitments. The Alcoa–Sojitz Gallium Recovery Project in Wagerup, Western Australia will receive up to USD $200 million in concessional equity finance from the Australian Government, alongside US investment and Japanese funding already covering half of the project costs. Once operational, it is expected to supply around 10 percent of global gallium demand—used in semiconductors and defence components.
The Arafura Nolans rare earths project in the Northern Territory will receive USD $100 million in Australian equity investment. It is expected to provide 5 per cent of global rare earths demand once in production.
To coordinate future efforts, a US–Australia Critical Minerals Supply Security Response Group will be established, led by the US Secretary of Energy and Australia’s Minister for Resources.
"This is an acknowledgement of Australia’s strategically important role in the development of new technologies, defence capabilities and renewable energy infrastructure that stem from the nation’s array of critical minerals," the Minerals Council of Australia's Tania Constable said yesterday.
"And it confirms Australia’s fundamental role in the global supply chain of the very minerals, materials and rare earths that the world requires."
NSW exploration drive targets copper and rare earths
Meanwhile in NSW, the state government’s latest funding round marks the largest exploration co-investment program ever offered in the state. Twenty-one of the 29 supported projects will target copper, a metal in high demand as global electrification accelerates. NSW copper output has grown by one-third over the past three years, reaching around 190,000 tonnes this financial year.
Other projects will explore for rare earths, zirconium, silver and cobalt—minerals essential for renewable energy technologies, data centres and medical equipment manufacturing.
Recipients include Waratah Minerals, exploring copper at the Spur Porphyry Project in the Macquarie Arc; Neo Double Eagle Resources, drilling for rare earth elements at Binge Grumble Mountain; and Alkane Resources, testing a new exploration model at Peak Hill. Silverton Minerals will use passive electromagnetic sensing near Broken Hill to locate mineral-bearing structures.
Minister Houssos said the grants reflected both the state’s mineral potential and its focus on partnering with industry.
"NSW has the critical minerals and high-tech metals that the world needs to drive a clean energy future, create new jobs, and build resilient supply chains.”
She added that the state was positioning itself to attract global investment.
“These co-investment grants highlight the Minns Labor Government’s partnering with industry, and for NSW to be a leading player in the global race for critical minerals.”
Combined national impact
Taken together, the two announcements represent a coordinated effort to advance Australia’s upstream and downstream critical minerals capabilities. NSW exploration funding will help identify new deposits, while the federal framework provides international investment and market certainty for processing and offtake.
The developments come as Sydney hosts the International Mining and Resources Conference (IMARC) and the Critical Minerals Investment Showcase, connecting Australian projects with investors from across the world.
With both state and federal programs now underway, Australia’s critical minerals industry is positioned for expansion across exploration, processing and supply chain cooperation.
