Two-stage NSW grants aim to move critical minerals research towards industry use
NSW research organisations can now apply for the first stage of a new $4 million government program that funds proof-of-concept work in critical minerals processing and advanced materials, with successful projects eligible to progress to larger demonstration grants aimed at commercial deployment.
Applications have opened for the first stage of the NSW Government's $4 million Critical Minerals Processing and Advanced Materials Innovation Program, with research organisations able to seek grants of up to $100,000 to test the technical and commercial potential of new technologies.
The two-phase program is administered by the Office of the Chief Scientist and Engineer (OCSE) in collaboration with NSW Resources within the Department of Primary Industries and Regional Development. It forms part of the NSW Government's Critical Minerals and High-Tech Metals Strategy 2024-2035.
Phase 1 applications opened on 7 August and close at 3pm on 18 September 2026.
Funding targets early-stage technology validation
The program supports technologies that process mined critical minerals into refined products, such as purified metals, oxides and chemical precursors, along with advanced materials produced from those processed minerals, including battery chemicals, permanent magnets, alloys and advanced ceramics.
Phase 1 provides funding for projects lasting up to eight months to establish technical feasibility and assess commercial potential. Successful applicants can later seek up to $1 million through a two-year Phase 2 Catalyser/Demonstrator grant to pilot and validate technologies in operational environments with industry partners.
Only organisations that receive and satisfactorily acquit a Phase 1 grant will be eligible to apply for Phase 2.
Research organisations are eligible to apply
The program is open to NSW-headquartered universities, private non-profit research institutes, and NSW or Australian Government research organisations, laboratories and research groups.
Applicants must own the intellectual property, or hold an exclusive licence to commercialise it in Australia and internationally, and demonstrate how their project could progress into a Phase 2 demonstration.
Eligible projects must already have an existing prototype at Technology Readiness Levels 3 to 7 and undertake proof-of-concept activities such as laboratory or early pilot-scale testing. Projects are also expected to involve collaboration with industry end users and NSW-based Mining Equipment, Technology and Services providers, manufacturers or material users to assess practical deployment and commercial pathways.
Program focuses on commercial pathways
Phase 1 projects are intended to define an industry problem or opportunity, validate the proposed technology, demonstrate progress to at least Technology Readiness Level 4, assess commercial potential and identify the skills and research capability needed for future deployment.
Funding can be used for eligible project costs including capital equipment, temporary project staff, licence fees and data analysis, provided the expenditure occurs in NSW and relates directly to approved project activities.
The program does not fund land purchases, overseas travel, conference attendance, retrospective costs, ongoing wages, routine business activities or projects that have already commenced before funding is offered.
Government outlines focus on downstream processing
The NSW Government said the program is intended to support the development and commercialisation of downstream processing technologies and advanced materials rather than focusing solely on mineral extraction.
Minister for Natural Resources Courtney Houssos said, "We want to see NSW is moving beyond just extracting raw materials to develop more in processing capability and advanced manufacturing technologies."
Minister for Innovation, Science and Technology Anoulack Chanthivong said, "That's why we're investing in NSW researchers and innovators to turn breakthrough ideas into commercial opportunities, new industries and good local jobs."
Applications will be assessed through separate eligibility and merit stages, with recommendations from an assessment panel provided to the Secretary of the Premier's Department for final funding decisions.
For research institutions, manufacturers and technology developers working with universities across NSW, the program creates a pathway for laboratory-based innovations to be tested with industry partners before progressing towards larger-scale demonstration and commercial deployment.
