Aluminium to forge Australia’s manufacturing future

The Federal Government has announced a landmark $2 billion green aluminium production credit to support Australia’s transition to renewable energy and bolster its aluminium industry.

Prime Minister Anthony Albanese announced the initiative on January 20 at Tomago Aluminium in New South Wales as part of the Federal Government’s broader vision to secure well-paid manufacturing jobs while contributing to the global energy transition.

“Investing in the Australian-made aluminium industry is a massive opportunity – to create well-paid jobs in our regions and suburbs, and set Australia up for the future,” Albanese said.

“We’ve got the resources, the workers, and the know-how – the only thing we don’t have is time to waste.”

The new green aluminium production credit provides support to Australian aluminium smelters switching to reliable, renewable electricity.

Industry advocates, including the Chamber of Minerals and Energy of WA (CME), have praised the move but are urging for broader measures to expand Australia’s green materials portfolio.

CME acting chief executive officer Adrienne LaBombard said the credit was a positive step towards safeguarding Australia’s aluminium industry but additional measures targeting other commodities were also required.

“We hope this announcement is the first of more to come, specifically supporting the development of other green materials in WA, such as green iron and green alumina,” LaBombard said.

“Maintaining Australia’s existing upstream and downstream industry while seizing the new opportunities on offer through the energy transition will require ongoing and holistic policy support.”

Australia is already the world’s sixth-largest aluminium producer, with an integrated supply chain encompassing bauxite mining, refining, and smelting.

The government aims to leverage this existing framework and its renewable energy potential to meet growing global demand for clean, reliable metals.

CME research showing that large-scale production of green iron could offset nearly all of Australia’s 465M tonne domestic CO2 emissions by 2050, creating nearly 20,000 jobs and delivering $74 billion in economic value.

As the Federal Government commits to decarbonising aluminium, calls grow for expanded investment and incentives to position Australia as a global leader in the renewable materials market.