Australia strikes gold (and vanadium) in the race for critical minerals, securing Its future as a global leader in mining and clean energy supply chains

Australia has solidified its status as a global leader in the resources sector, emerging as the world’s largest holder of vanadium resources and a dominant force in critical minerals essential for clean energy and advanced technologies.

The latest Australia’s Identified Mineral Resources (AIMR) 2024 report, released by Geoscience Australia, reveals that Australia now holds nearly half of the world’s vanadium reserves, marking a significant leap from second place in 2023.

Vanadium, a lesser-known yet highly valuable metal, plays a crucial role in high-strength steel production and redox flow batteries, which are gaining traction as a reliable energy storage solution for renewable energy systems. With major vanadium projects progressing in Queensland and Western Australia, Australia is well-positioned to become a key global supplier of this critical mineral. The increasing demand for vanadium underscores its importance in decarbonisation strategies and energy security, with its applications extending beyond steel manufacturing to grid-scale energy storage solutions that complement the rise of wind and solar power.

The AIMR 2024 report highlights an unprecedented surge in mineral exploration investment, particularly in critical minerals. Investment in exploration for these resources outpaced both iron ore and copper in 2023, with a total spend of $767.5 million, reflecting growing global interest in securing stable supply chains for materials vital to clean energy and high-tech industries. Some of the most notable increases in Economic Demonstrated Resources (EDR) include significant growth in platinum group elements, graphite, lithium, niobium, manganese ore, and rare earth elements.

Beyond vanadium, Australia maintains its number one global ranking in resources for gold, iron ore, lead, rutile, uranium, zinc, and zircon. This places the country in a strategic position as demand for these resources grows, particularly in the face of geopolitical shifts and evolving trade policies. The report also indicates a significant increase in production of critical minerals such as molybdenum, tungsten, and rare earth elements, highlighting Australia’s role as a reliable supplier in the global push towards clean energy transition and advanced manufacturing.

The Australian Government’s Future Made in Australia initiative is poised to support long-term investment in the resources sector. With $3.4 billion allocated for precompetitive geoscience programs under the Resourcing Australia’s Prosperity initiative, efforts are being made to accelerate new discoveries and strengthen supply chain resilience for critical minerals. The AIMR 2024 report underscores the importance of securing critical mineral supply chains, particularly as demand for battery materials, rare earths, and high-strength metals continues to rise globally. With exploration investment at record levels and new projects advancing across the country, Australia is well on track to maintain its position as a leading force in global mineral production.

Australia’s dominance in vanadium, lithium, rare earths, and other critical minerals is a testament to its rich geological endowment and strong investment in mineral exploration.

As the world transitions towards net-zero emissions, Australia’s resources industry will play a pivotal role in shaping the global energy landscape.

With its expanding resource base, advanced mining sector, and government-backed initiatives, the nation is poised to be a cornerstone in the supply of essential minerals for decades to come.