The government will implement the reserve through national offtake agreements and selective stockpiling.
The reserve will be backed by an initial A$1.2 billion investment, including a A$1 billion expansion of the Critical Minerals Facility, increasing its total funding to A$5 billion. This financial support will assist private sector and international partners in covering initial capital costs for new projects, fostering the development of Australia’s critical minerals sector.
The government will implement the reserve through national offtake agreements and selective stockpiling, prioritizing minerals vital for national security and the interests of Australia’s key partners. The reserve is expected to generate revenue through global market sales and transactions with strategic allies. Prime Minister Anthony Albanese stated: “The Strategic Reserve will mean government has the power to purchase, own and sell critical minerals found here in Australia. It will mean we can deal with trade and market disruptions from a position of strength.”
A taskforce will be established to finalize the reserve’s scope and design, with operations set to commence in the second half of 2026. The initiative is further supported by a A$7 billion Critical Minerals Production Tax Incentive, reinforcing the government’s commitment to the sector’s growth.
Resources Minister Madeleine King commented: “While we will continue to supply the world with critical minerals, it is also important that Australia has access to the critical minerals and rare earths we need for a Future Made in Australia. The Strategic Reserve, combined with Production Tax Credits and the expansion of the Critical Minerals Facility, shows the Albanese Government is taking the development of an Australian critical minerals industry seriously.”
In January 2025, the Cook Government allocated funding to research rare earth extraction in Western Australia, aiming to establish a new rare earth province in the region. This complements the national strategy to enhance Australia’s role in the global critical minerals market.
The Strategic Reserve is designed to position Australia as a reliable supplier while ensuring domestic access to essential minerals. By fostering investment and job creation, particularly in Western Australia, the initiative supports economic growth and strengthens Australia’s standing in the global supply chain for critical minerals.
