Australia’s critical minerals rebound as lithium prices strengthen

Lithium’s mid-year recovery is reviving Australia’s critical minerals industry, lifting export earnings and renewing investor confidence in supply-chain resilience.

After a turbulent year of falling prices and production cutbacks, Australia’s critical minerals industry is regaining its footing. Lithium markets have turned a corner, with spodumene and lithium hydroxide prices recovering by mid-2025 as inventories clear and Chinese battery demand improves.

Export earnings are forecast to rise from A$ 4.8 billion in 2024–25 to over A$ 6 billion by 2026–27, driven by stronger prices and steady output growth.

Investment appetite is returning as well. Several new exploration programs in rare earths, nickel, and cobalt have advanced, supported by Canberra’s Critical Minerals Facility and growing partnerships with Japan, South Korea, and the United States.

Refining and mid-stream processing projects are gaining traction as governments push to capture more value within Australia.

While competition from emerging suppliers in Africa and South America is intensifying, Australia retains a clear edge in policy stability, ESG standards, and project finance access.

The rebound in prices and investor sentiment suggests the sector is entering a new, more diversified growth phase, anchored in the global clean-energy transition.