The Federal Labor Government is investing $500 million to strengthen Australia’s steelmaking and manufacturing sectors as part of its ongoing support for the country’s renewable energy transition.
This funding, according to the government, is part of the Future Made in Australia Innovation Fund. It will help expand the nation’s manufacturing capacity to meet the demands of Australia’s energy transition.
The investment comes as the country continues its shift toward renewable energy, which saw record levels of investment in renewables last year.
With hundreds of tonnes of steel required for each wind turbine, and over 100,000 workers employed in the steel sector, the government sees the expansion of onshore manufacturing as key to both job creation and economic resilience.
Prime Minister Anthony Albanese said the government is committed to support Australian steel and aluminium industries.
“We will always stand up for Australian jobs and Australian industries. And we will back Australian industry to compete and succeed, so we can create the next generation of good local jobs,” he said.
The $500 million will be managed through the Australian Renewable Energy Agency (ARENA), which will provide merit-based grants for projects focused on wind tower steel fabrication and other clean energy technologies, including battery and storage systems, hydrogen electrolysers, and energy efficiency technologies.
Minister for Climate Change and Energy Chris Bowen noted that the energy transition is creating opportunities for local manufacturers.
“Australian manufacturing workers today – from the software lab to the steelworks and smelters – have so much to gain from the transformation underway.”
The funding is part of a broader $1.75 billion allocation through the Future Made in Australia Innovation Fund.
According to Minister for Industry and Science Ed Husic, the initiative aims to develop a new generation of jobs, focused on adding value to Australia’s natural resources.
“To build our economic resilience, our self-reliance and our sovereignty, and to make sure that in an age of global uncertainty, we can stand on our own two feet,” Husic said.
The government’s move is seen as part of a broader strategy to position Australia as a leader in the clean energy sector, creating jobs while securing the nation’s energy future.
Further announcements from the Fund are expected in the coming months.
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