The Federal Government has today announced a A$2 billion investment in the Australian aluminium industry as another next step towards the Future Made in Australia goal of a net zero economy.
Proposed tax credits will provide targeted support to Australia’s four major aluminium smelters as they transition to renewable electricity and low-carbon aluminium by 2036.
The new “green aluminum” sector will see the facilities eligible for government support for every tonne of clean, reliable Australian-made aluminium produced over a 10-year period.
“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.
We’ve got the resources, the workers, and the know-how – the only thing we don’t have is time to waste,” said Prime Minister Anthony Albanese.
In the last federal budget, the Government announced similar tax credits for other major industries such as hydrogen and critical minerals.
Australia is the sixth largest producer of aluminium in the world with an entirely domestic supply chain that contributes around $18 billion to the economy annually.
This comes as the latest pre-election commitment from the Labor government which is targeted at reducing emissions and supporting thousands of manufacturing jobs and increasing long term job security.
According to a recent report from the Australian Aluminum Council, the sector provides more than 20,700 direct and 55,000 indirect employment opportunities as of October 2024.
A statement released by the Government emphasised that investment into the security and future of the industry is a valuable investment into the economy.
As global importers are looking towards decarbonising the economy, the Labor government says investing in the industry will create opportunities for growth as the market transitions.
Mining giant Rio Tinto (ASX: RIO) has praised the announcement as it will expand on an existing partnership with the Queensland Government announced in 2024 which will also support Boyne Smelters Ltd’s transition to renewable energy.
Rio Tinto has said it is making progress in securing renewable power to provide competitively priced electricity for its aluminium operations.
“The Australian Government's commitment shows strong confidence in domestic manufacturing and the nation’s position in the global economy.
As traditional energy sources for heavy industry become increasingly uncompetitive, today’s announcement is a critical piece in helping future-proof the industry,” said Chief Executive Kellie Parker.
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