The Australian Government has opened public consultation for the design of its $2 billion Green Aluminium Production Credit, a major investment aimed at strengthening the nation’s aluminium manufacturing industry while supporting the transition to renewable energy.
In a news release, the government said the initiative is part of the Albanese Labor Government’s broader Future Made in Australia agenda, which seeks to boost domestic manufacturing capability and cut industrial emissions.
According to the government, the production credit will provide local aluminium smelters with long-term confidence to invest as they shift towards renewable electricity sources.
It noted that facilities will be eligible for support for every tonne of Australian-made aluminium produced using clean energy over a period of up to ten years or until 2044, whichever comes first.
Minister for Industry and Innovation and Minister for Science Tim Ayres said the program underscores the central role of aluminium in Australia’s industrial base and clean energy transition.
“Australia’s aluminium smelters have long been the backbone of our manufacturing sector,” Minister Ayres said.
“Demand for aluminium, because of its wide range of uses including for the infrastructure necessary for the energy transition – both at home and with our trading partners – is set to grow strongly in the decades ahead.”
The government stated that aluminium, which is widely used in construction, defence, transport, electronics, and renewable energy infrastructure such as solar panels, wind turbines, and transmission lines, is an important material supporting the global clean energy transition.
The government noted that aluminium production accounts for between 3 and 4 per cent of Australia’s total greenhouse gas emissions.
“With the right stable policy settings and incentives, abundant renewable energy and rich mineral resources, Australia has what it takes to lead the world in aluminium production made using renewable energy,” Minister Ayres said.
“Aluminium using renewable energy, alongside other metals, is a priority sector under the Future Made in Australia agenda, and decarbonising our aluminium smelters is essential to achieving our net zero targets.”
The consultation period for the design of the Green Aluminium Production Credit is now open and will close on 30 October 2025.
Further details and opportunities to contribute to the consultation are available at consult.industry.gov.au.
