Australia’s critical minerals reserve: AUD1 billion boost for supply chain security

On 12 January 2026, the Australian Federal Government announced new details in relation to its proposed Critical Minerals Strategic Reserve (the Reserve) which will secure the supply of key minerals vital for Australia’s economy, national security and support the Future Made in Australia ambitions. 

The announcement confirmed that the Reserve would now benefit from:

• AUD1 billion to be allocated to funding debt and equity investments for critical mineral projects in Australia; and 
• AUD185 million to be allocated to funding the procurement of critical minerals for stockpiling purposes.  

This signals a significant advancement in national policy to accelerate the responsible development of the critical minerals value chain and positions Australia to play a pivotal role in the global critical minerals landscape. 

The announcement also underscores Australia’s intent to expand upstream supply, advance onshore processing and refining, and deepen integration with trusted international partners, including the United States, Japan, Republic of Korea, Europe, Canada and the UK, with a strong focus on economic security, decarbonisation, and regional jobs. 

For mining companies, project developers, financiers and offtakers, the implementation of the Reserve creates a significant opportunity for growth and expansion as a result of a more active government role across the project lifecycle. In practical terms, this means an emphasis on facilitating investment into greenfield and expansion-stage projects, supporting downstream value-adding, improving enabling infrastructure, and streamlining engagement with government. It also highlights Australia’s commitment to building resilient, transparent, and sustainable supply chains for key inputs to clean energy, advanced manufacturing, and defense.

Looking ahead, we should expect further detail as program settings and guidelines are finalised, particularly after the Treasurer Jim Chalmers' meeting with Australia's allies and trading partners in Washington DC this week (week commencing 12 January 2026). As set out in the announcement, the first minerals to be the focus of the Reserve will be antimony, gallium and rare earths, but we expect to learn more about the design and timing of support measures, eligibility and assessment frameworks over the course of the upcoming months. 

Clarity on permitting interfaces, environmental and Indigenous engagement expectations, and offtake facilitation will be central to bankability and timelines. Integration with allied-market policies, particularly the United States, will remain a priority as cross-border financing, trade, and procurement frameworks continue to evolve.

Commenting on the announcement, DLA Piper partner and co-head of DLA Piper's Energy and Natural Resources Alex Jones said: "Increased demand driven by Energy Transition, coupled with the geopolitical imperative of supply chain security, poses an enormous opportunity for Australia - which is rich in critical minerals and mining know-how. This is a constructive step by the Federal Government to assist Australian industry in taking advantage of this opportunity."

Washington, DC-based Finance partner Oliver Wright commented: "The United States and Australia share a deeply aligned vision for secure, resilient and transparent critical minerals supply chains. As both nations accelerate investment and policy coordination, this partnership and support from our respective governments will deliver diversity of supply chains, strengthened economic and national security and support for technologies that will drive the energy transition." 

DLA Piper’s global Energy and Natural Resources team has extensive experience advising on critical minerals across Australia and the United States, spanning project development, permitting, land access, strategic offtake and JV arrangements, cross-border M&A, project finance and export credit, and ESG and supply chain due diligence. 

We regularly engage with government entities in both countries, helping clients navigate policy, approvals, grant and financing pathways, and compliance requirements to reach timely, bankable outcomes.

If you are assessing opportunities or progressing transactions in the critical minerals sector, whether mining, processing, refining, or integrated supply chain solutions, we are ready to help you identify the right strategy, structure, counterparties, and government interfaces to move from announcement to execution with confidence.