Critical minerals in Australia - statistics & facts
Australia has some of the largest recoverable critical mineral deposits in the world. These mineral resources are essential to the global economy and could be susceptible to supply disruptions. Already a world-leading mining nation, Australia is in a good position to contribute to the world’s supply of many critical minerals such as nickel, cobalt, lithium, and, rare-earth elements. The global demand for critical minerals for energy storage is just one opportunity that Australia’s mining industry is banking on. However, recent large declines in the prices of some of these minerals have shown that the industry is perhaps not as robust as once thought.
Nevertheless, recent price trends for these minerals have slightly rattled industry stakeholders. The price for battery-grade lithium carbonate saw a steep increase in 2022, averaging 68.1 thousand U.S. dollars per metric ton, but was followed by a significant drop in 2023. Price volatility was also observed for nickel and cobalt, with prices often dictated by anticipated reductions or increases in downstream processes, such as downstream battery production. Prices for battery minerals are forecast to decrease this year, which begs the question, will this affect investment into exploring these minerals?
With continued investment, Australia looks set on cementing its place in the global supply chain of critical minerals. Despite fluctuating prices, the overall demand for critical minerals will likely increase. Strategic investment in this sector will be required if the country wants to become a destination of choice for the critical minerals industry.
Has Australia struck ‘white gold’?
Lithium is sometimes referred to as ‘white gold’ due to its necessity in batteries and the potential lucrativeness that comes along with that. Australia has significant reserves of this critical mineral, specifically lithium found in spodumene, and is the world’s leading lithium producer. With large reserves of other critical battery minerals including nickel and cobalt, Australia seems well-placed to contribute to the global battery mineral market.Nevertheless, recent price trends for these minerals have slightly rattled industry stakeholders. The price for battery-grade lithium carbonate saw a steep increase in 2022, averaging 68.1 thousand U.S. dollars per metric ton, but was followed by a significant drop in 2023. Price volatility was also observed for nickel and cobalt, with prices often dictated by anticipated reductions or increases in downstream processes, such as downstream battery production. Prices for battery minerals are forecast to decrease this year, which begs the question, will this affect investment into exploring these minerals?
Unearthing the future of mining
While abundant in raw materials, Australia lacks the facilities to process these minerals so they can be used across various applications. The Australian Government’s Critical Minerals Strategy sets out to accelerate growth in the country’s critical minerals sector by facilitating expansion in the exploration and downstream processing of these commodities. Australia’s Critical Minerals List will be used to identify which minerals to prioritize in terms of policy support. The Western Australian Government has similarly implemented its strategy to develop its battery and critical minerals sector. Western Australia had the highest share of mineral exploration expenditure in Australia at around 60 percent. Additionally, mineral investment in Western Australia was allocated across a diverse range of mining commodities, including rare earths, nickel, and lithium.With continued investment, Australia looks set on cementing its place in the global supply chain of critical minerals. Despite fluctuating prices, the overall demand for critical minerals will likely increase. Strategic investment in this sector will be required if the country wants to become a destination of choice for the critical minerals industry.
