The terms critical and strategic minerals/materials denote various categories of natural minerals based on their use case. Critical minerals are necessary for technologies like batteries, solar panels, and electric cars, while strategic materials are necessary for industrial resilience and national security.¹ Demand is rising globally, particularly for copper, (Figure 1) which is essential for infrastructure supporting renewable energy. With significant amounts of nickel, rare earth elements, lithium, and copper deposits, Australia plays an important role in these global supply chains (Figure 2).²  

Lithium is a critical mineral that's essential for clean energy technologies that is widely used in batteries for electric vehicles, renewable energy storage, and other applications. Australia, the world’s largest lithium producer in 2023, saw a 33% output increase from 2022. Production grew by a 2% CAGR (Compound Annual Growth Rate) from 2017 to 2022 (Figure 3).³

Similarly, in the rare earth elements (REEs) global supply chain, Australia was the second-largest producer in 2018, contributing 11% of global production (Figure 3).⁴ REEs play a vital role in various industries, including electronics, clean energy, aerospace, automotive, and defence. In 2021, Australia ranked fourth in rare earth production globally, with 19,958 tonnes.⁵

Australia’s alumina, aluminium, and bauxite (AAB) exports are poised for growth in both value and volume (Figure 4). In 2024, AAB earnings are forecast to rise by 19% to $20 billion, driven by higher prices and strong bauxite exports, expected to reach 101 million tonnes (Mt). By 2024–25, earnings could hit $23 billion, with alumina exports reaching $13 billion. Increased production is supported by the March 2025 approval of South32's Worsley Mine Development, ensuring bauxite supply until at least 2036, and Chevron's 10-year gas deal with Alcoa starting in 2028 to support alumina refineries. This, along with new bauxite projects, is expected to boost Australian bauxite output to 104 Mt by 2030 (Figure 4). Despite this growth, AAB exports are projected to decline to $18 billion by 2029–30. Australia’s competitive edge remains strong, thanks to low operating costs.⁶

Under the Net Zero Scenario (Figure 5), copper is projected to see significant growth in global market value, reaching approximately USD 282 billion by 2030 and rising to USD 330 billion by 2040. Lithium is also expected to experience rapid expansion, with its market value projected to grow to USD 118 billion by 2030 and USD 232 billion by 2040. 

Employment trends in Critical Minerals and Strategic Materials

There are 4,296 males and 816 females (roughly 3.5 to 6.1) working in the other construction material mining group which can include critical minerals such as Arsenic, Hafnium and Silicon (Figure 6). 

Education pathways relevant to the critical minerals ecosystem

Bachelor’s degrees and Certificates III and IV are the most common education levels in critical mineral employment reflecting the skilled nature of the workforce (Figure 7). Post-secondary VET and higher education provide a more flexible and responsive tertiary education system, particularly through qualifications that meet industry needs as demand for skilled workers continues to grow, these education pathways are essential to developing a job-ready workforce for Australia’s future minerals sector.⁷

Projected employment in Critical Minerals and Strategic Materials projects

Across Australia, critical minerals projects are poised to create employment opportunities in the coming years (Figure 8). Western Australia leads with major lithium projects such as Kathleen Valley (350 jobs) and Pilgangoora (300 jobs). Queensland is an important destination relevant to rare earths and critical minerals, with projects like Saint Elmo (150 jobs) and Sconi (300 jobs by 2028) in nickel and cobalt. In New South Wales, the Sunrise Project (nickel, cobalt) is expected to create 377 jobs by 2026. In South Australia, the Siviour Graphite Project will add 200 jobs by 2025, while Victoria will see significant growth with the Avonbank Mineral Sands Project (588 jobs by 2026), the Donald Rare Earth and Mineral Sands Project (150 jobs by 2025), and the Goschen Project (400 jobs). These projects highlight the growing importance of critical minerals across Australia, supporting both the economy and job creation.⁸ Collectively, these projects reflect a strong national emphasis on critical minerals with thousands of jobs projected nationwide.

We continue to engage with stakeholders to better understand skills needs relevant to the critical minerals industry and how this may vary from the non-critical minerals mining industry.