Big funds for rare earths hub
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The Australian Government has put up $475 million to develop the Eneabba Rare Earths Refinery in Western Australia.
The investment seeks to strengthen the nation's rare earths sector, which is essential for producing technologies such as electric vehicles, wind turbines, and defence equipment.
Proponents say the project is expected to create 900 construction jobs and sustain 250 permanent roles upon completion.
“Critical minerals are the building blocks for a clean energy future, and we are determined to seize this economic opportunity to support local businesses and local jobs,” Prime Minister Anthony Albanese said.
The Eneabba facility, led by Iluka Resources, will be Australia’s first integrated rare earths refinery.
It aims to reduce reliance on China's near-monopoly in the rare earths market by developing a sovereign supply chain.
The project will focus on processing minerals domestically, ensuring the economic benefits of Australia’s mineral wealth remain onshore.
“Not only are critical minerals and rare earths key to the energy transition, but they are also essential to the defence industry and our national security,” Resources Minister Madeleine King says.
Export Finance Australia (EFA) will provide the financing through the $4 billion Critical Minerals Facility.
The refinery will also benefit from a Production Tax Incentive, offsetting critical mineral processing costs.
This additional support obliges Iluka Resources to implement measures that diversify supply chains and deliver community benefits, reflecting the goals of the new Future Made in Australia Act.
Iluka CEO Tom O'Leary has described the funding as a convergence of the company's commercial objectives with government policy, ensuring that Australia capitalises on its advanced mining capabilities.
The refinery is part of a broader effort to integrate Australia into the global renewable energy and defence supply chains.
“If we get this right... we can be even more prosperous in the future. But it will take a government facilitating that private sector investment,” Albanese said.
