KWM TOPICS >

Critical Minerals

AU | EN
Current site :    AU   |   EN
Australia
Singapore

Demand for critical minerals continues to rise, largely driven by the energy transition and the development of new technologies.

Australia, endowed with vast reserves of critical minerals is a significant player in the global sector. Australia is the world’s largest producer of lithium and one of the top five producers of cobalt, manganese, and rare earths – all used extensively in clean energy technology.

What are ‘critical minerals’?

Critical minerals are considered by the Australian Federal Government as those that are essential for modern technologies, economies or national security, and are vulnerable to supply chain disruptions. The Government maintains a list of critical minerals, which currently includes 31 minerals. Individual countries develop their own lists of critical minerals based on the relative importance of particular minerals to their industrial needs and their strategic assessment of supply risks and are subject to change.

Figure 1: A comparison of critical minerals in Australia, United States, United Kingdom and Canada

This diagram has been developed using the following sources: Australian Government Department of Industry, Science and Resources ‘Australia’s Critical Minerals List and Strategic Materials List’ (2024), Government of Canada ‘Canada’s Critical Minerals’ (2025), US Department of Interior ‘Final 2025 List of Critical Minerals’ (2025), UK Department for Business & Trade ‘Critical Minerals technical annex’ (2026).For the United States and United Kingdom, this diagram does not represent: the US additional critical materials for energy identified by the US Department of Energy in 2023 which do not overlap with the US critical minerals list, being, electrical steel, fluorine, natural graphite and silicon carbide; and the UK growth minerals which do not overlap with the UK critical minerals list, being, beryllium, chromium, copper, uranium and graphite (synthetic).

Figure 2: Australia’s Critical Minerals and Strategic Materials: energy transition uses and world ranking for Australian Economic Resources and production

Our Critical Minerals Insights

Navigating Net Zero: APAC Climate Guide

In our APAC Climate Guide, experts across the region share their insights as they help clients to navigate the transition. We look at the incentives encouraging clean energy, how carbon markets are expanding, the growth of sustainable finance and the role of the private sector. We also look at focus areas in each jurisdiction, from wind power in Japan to electric vehicles in China.

20 January 2026

Critical Minerals 2025 Wrap Up: What You Need To Know

n our final insight for 2025, we reflect on the new United States-Australia Framework deal in the context of Australian government initiatives following the May Federal election which are relevant to Australian projects.

18 November 2025

A not-so ‘just transition’ - corruption and modern slavery in clean energy

Australia’s role in the global energy transition is critical. But as demand surges for minerals like lithium, cobalt and rare earths, so do the risks of corruption and modern slavery.

07 November 2025

The Critical Minerals Production Tax Incentive: expanded eligibility for particular processing activities

The Future Made in Australia (Production Tax Credits and Other Measures) Act 2025 (Act), which received Royal Assent shortly before this year’s Federal election was announced, established the critical minerals production tax incentive (CMPTI).

24 September 2025

Critical insecurity – how critical minerals policies are impacting global markets and supply chains

Last week, the Federal Resources Minister, Madeleine King, led a roundtable with Australian state and territory resources ministers on, among other things, supporting Australia’s minerals industry, amidst the Federal Government’s current industry consultations on a promised Critical Minerals Strategic Reserve.

17 September 2025

Critical minerals: A year in review and 2025 opportunities

Australia’s critical minerals sector has been transformed in 2024 by regulatory overhauls, strategic funding initiatives, and shifting global priorities. Critical energy transition minerals (CETMs) have emerged as the linchpin of the energy transition. Australia, endowed with vast reserves of these CETMs, is positioning itself at the forefront of the global energy transition.

16 December 2024

The Critical Minerals Production Tax Incentive: what to expect from the Bill

In this insight we take a close look at the CMPTI, to help businesses prepare for additional reporting obligations and potential compliance costs.

11 December 2024

Opening the doors to international funding for Australian critical minerals

Over the past week, several positive announcements have been made for Australian listed critical minerals mining companies and critical minerals projects within Australia

03 October 2024

Uranium, the energy transition & the nuclear fuel global supply chain

In 2023, the Sapporo 5 (a strategic partnership between the United States, Canada, France, Japan, and the United Kingdom) agreed to collaborate to develop a secure and resilient global nuclear supply chain.

16 September 2024

Leading the Charge: EV Battery Supply Chains

The strong global push to electrify the world’s vehicle population has in turn created exponential demand for the various components comprising an EV, with the most important being its energy source – the battery. The EV battery (and its supply chain) serves as the single most valuable part of an EV, typically accounting for 30% to 40% of the value of the vehicle[2]. This high cost is mainly attributed to the battery’s composition of several critical raw minerals, including lithium, cobalt, manganese, nickel and graphite[3]. As we share below, these minerals are hard to come by and supply is concentrated in the hands of a few countries.

24 July 2024

The Critical Minerals Production Tax Incentive: what to expect (and why more detail is needed)

The Federal Government's commitment to fostering a Future Made in Australia is set to introduce significant incentives for businesses engaged in the critical minerals sector.

22 July 2024

Critical Minerals - the central role of copper to AI and net zero

Artificial intelligence, in particular generative AI, is rapidly reshaping our global critical minerals landscape.

16 July 2024

Critical Minerals - Funding initiatives & the 2024 Federal Budget

Following the recent announcement of the 2024 Federal Budget and the upcoming Future Made in Australia Act, the Federal Government’s end-to-end energy transition focus is clear. As highlighted in our earlier insight, Minister for Resources Madeleine King has indicated that critical minerals funding will be vital in building the foundation of the Future Made in Australia Act, which was reflected in the 2024 Federal Budget announcements.

31 May 2024

Federal Budget May 2024-25: Green Energy & Advanced Manufacturing

The Government has provided some details regarding its recently announced Future Made in Australia package.

14 May 2024

Australia’s Foreign Investment Regime and Critical Minerals – “major overhaul” to be announced today by the Treasurer

As the global energy transition continues to develop, change is on the horizon. Global critical mineral supply and demand, technological development, and the clean energy transition will continue to drive investment as government and industry stakeholders look for opportunities.

01 May 2024

Foreign investment in critical minerals - is FIRB really worried?

They can be - let us explain.

05 July 2022

Show More Show Less

Critical Minerals Production Tax Incentive Series

The Critical Minerals Production Tax Incentive: draft guidance on the proposed application of the community benefit principles

The Future Made in Australia (Production Tax Credits and Other Measures) Act 2025 (Act), which received Royal Assent shortly before the May 2025 Federal election was announced, established the critical minerals production tax incentive (CMPTI).

13 February 2026

The Critical Minerals Production Tax Incentive: expanded eligibility for particular processing activities

The Future Made in Australia (Production Tax Credits and Other Measures) Act 2025 (Act), which received Royal Assent shortly before this year’s Federal election was announced, established the critical minerals production tax incentive (CMPTI).

24 September 2025

The Critical Minerals Production Tax Incentive: what to expect from the Bill

In this insight we take a close look at the CMPTI, to help businesses prepare for additional reporting obligations and potential compliance costs.

11 December 2024

The Critical Minerals Production Tax Incentive: what to expect (and why more detail is needed)

The Federal Government's commitment to fostering a Future Made in Australia is set to introduce significant incentives for businesses engaged in the critical minerals sector.

22 July 2024

Critical Minerals - Funding initiatives & the 2024 Federal Budget

Following the recent announcement of the 2024 Federal Budget and the upcoming Future Made in Australia Act, the Federal Government’s end-to-end energy transition focus is clear. As highlighted in our earlier insight, Minister for Resources Madeleine King has indicated that critical minerals funding will be vital in building the foundation of the Future Made in Australia Act, which was reflected in the 2024 Federal Budget announcements.

31 May 2024

Federal Budget May 2024-25: Green Energy & Advanced Manufacturing

The Government has provided some details regarding its recently announced Future Made in Australia package.

14 May 2024

Leading legal advisers in the critical minerals sector

Policy and technological developments in the critical minerals sector, both in Australia and globally, are shaping this evolving sector and driving activity. Australia can secure a significant share of the global critical minerals market by driving strategic investment, fostering collaboration, leveraging technological developments, and streamlining processing efficiency.

KWM is a leading legal adviser in the critical minerals and resources sector and is at the forefront of industry developments, partnering with clients to capitalise on opportunities and strengthening Australia’s role in the global sector.

Our Critical Minerals Deals

KWM advises Lynas on equity raising

King & Wood Mallesons (KWM) is proud to have advised Lynas Rare Earths Ltd (Lynas) on its recent equity capital raising, comprising a $750 million fully underwritten institutional placement and a follow-on share purchase plan aiming to raise up to $75 million.

09 September 2025

KWM advises Iluka Resources on strategic rare earths partnership with Lindian Resources

King & Wood Mallesons is pleased to announce its role as legal adviser to Iluka Resources Limited (ASX:ILU) in its landmark strategic partnership with Lindian Resources Limited (ASX:LIN).

12 August 2025

KWM advises Sierra Rutile to successful outcome after three competing takeover proposals

King and Wood Mallesons (KWM) is pleased to have acted for Sierra Rutile Holdings Limited (Sierra Rutile), which was recently the target of three competing takeover proposals.

08 October 2024

KWM advises on equity raising to enable pursuit of government funding for ASM's Dubbo rare earths project

King & Wood Mallesons (KWM) is delighted to have advised Australian Strategic Materials Limited (ASM) on its equity raising, which comprises an institutional placement and traditional pro-rata non-renounceable entitlement offer (Offer).

07 May 2024

KWM advising Allkem on $A15.7b merger, creating major new global lithium force

KWM is delighted to be advising Allkem Limited on its A$15.7B all-stock merger of equals with Livent Corp, to create a leading global lithium chemicals producer.

15 May 2023

KWM advises Iluka Resources Limited on its strategic partnership with rare earths company, including LOM supply contract and strategic investment by way of equity and debt

King & Wood Mallesons is delighted to have advised Iluka Resources Limited [ASX:ILU] [Iluka] on its strategic partnership with Northern Minerals Limited [ASX:NTU] [Northern], including a life of mine supply agreement for the supply of rare earths concentrate to Iluka from Northern’s Browns Range Project, and a strategic investment by Iluka in Northern by way of an initial placement and convertible note, with the possibility for additional investment by Iluka under a further placement and reciprocal put and call options (subject to the satisfaction of certain conditions).

03 November 2022