Australia’s lithium sector is gaining momentum as demand for critical minerals grows, creating new opportunities for the country to expand its role across supply chains and downstream processing.
Standing before a room of policymakers and industry leaders at the National Press Club, outgoing Lynas Rare Earths chief executive officer (CEO) and managing director Amanda Lacaze posed a simple question: How many people in the room have ever visited a mine?
The question was a reminder that an industry central to Australia’s economy is often overlooked, even as demand for critical minerals creates a growing opportunity for the country’s mining sector.
“Australia has the resources and capability to play a larger role in global supply chains,” Lacaze said.
“We mine the periodic table from lithium to uranium, so there are plenty of mines from which to choose.”
That opportunity is being driven by rising demand for materials underpinning electrification, renewable energy and advanced manufacturing, with lithium and rare earth elements at the centre of that shift.
Lithium is essential for battery production in electric vehicles (EVs), grid-scale energy storage and consumer electronics, while rare earth elements play a critical role in technologies such as wind turbines, electric motors and advanced electronics.
Yet despite their importance, the role these materials play often goes unseen.
People carry smartphones, drive cars and increasingly turn to EVs and renewable energy, often without realising the role these materials play in making those technologies possible.
“People love the finished products, but they have no idea of the raw materials or the complexity involved in delivering them,” Lacaze said.
As global demand continues to grow, that gap in understanding is beginning to close and, with it, attention is turning to countries like Australia that have the resources, expertise and scale to respond.
Australia’s supply chain opportunity
While supply chains remain concentrated, that structure is increasingly prompting a shift in how materials are sourced and developed.
“That creates a clear advantage for its economy and downstream industries,” Lacaze said, referring to established supply chain positions that have shaped global markets.
For Australia, that shift is creating clear opportunity.
As governments and manufacturers look to diversify supply, attention is turning to producers with a track record of delivering at scale, placing Australia in a strong position to expand its role.
“Critical minerals have become more visible and are often in the headlines, and not just on the business pages,” Lacaze said.
Australia is already one of the world’s leading lithium producers, supported by decades of experience across exploration, mine development and operations. That capability is reinforced by a highly skilled workforce and established infrastructure in key mining regions.
But the opportunity does not stop at extraction.
Building downstream capability
Processing remains one of the most significant challenges, and one of the biggest opportunities for Australia’s mining sector.
“Processing is complex. Money alone will not guarantee success,” Lacaze said.
Refining and downstream capability requires specialised expertise, sustained investment and long-term commitment. For Australia, that makes processing one of the biggest opportunities in the critical minerals supply chain, particularly as governments and manufacturers look for reliable partners outside traditional supply hubs.
“If we want the independence and economic prosperity that downstream manufacturing brings, then it is helpful to reflect on the lessons of our experience,” Lacaze said.
She pointed to Lynas’ own experience as an example of how Australian companies are already taking steps in that direction.
Lynas’ growth story has shown how Australian resources can be paired with international expertise to build supply chains that reach beyond raw material exports. The company mines rare earths in Western Australia and processes material in Malaysia, with long-term Japanese backing helping to support its growth as a global supplier.
“Our experience shows that succeeding in this market is much more complex than simply throwing money at the problem,” Lacaze said.
Lynas has continued to move ahead in that capability, recently completing a major capital program that included significant investment in WA, helping expand production and strengthen its downstream footprint. That progress has been supported by long-term international partnerships, particularly with Japanese industry and government.
“Globalisation may be on life support, but that doesn’t mean we have to do everything ourselves,” Lacaze said.
That model – combining Australian resources with global expertise – is becoming increasingly relevant as supply chains evolve.
Policy is also shaping the next phase of growth.
Recent measures in the US, Europe and China, including tariffs and supply chain regulations, are encouraging manufacturers to look at a broader range of suppliers and place greater value on secure, transparent and diversified sources of critical minerals.
Those shifts are reinforcing the importance of supply chain resilience while creating new pathways for producers such as Australia to expand their role in global markets.
For Lacaze, the opportunity extends beyond supply.
“Mining generates great wealth, which is shared with the whole nation via taxes and royalties,” she said.
The Lynas chief pointed to the Australian Taxation Office’s latest transparency figures, which show the resources sector paid more tax than all other industries combined. A reminder that the sector’s broad contribution to the national economy beyond exports alone.
Mining supports regional jobs, technical careers and national revenue, yet Lacaze believes the sector remains misunderstood outside traditional industry communities.
“Mining is not what people think it is,” she said. “It is a high-tech industry offering opportunities across a wide range of disciplines.”
From geologists and metallurgists to environmental scientists, engineers, and health and safety professionals, Lacaze said the modern mining workforce reflects an industry built on innovation and expertise.
Changing the perception will be critical to building the workforce needed to support future growth, particularly as demand for skills increases.
As demand for lithium and rare earths accelerates, focus is shifting towards how Australia can translate its resource advantage into long-term economic value.
“The opportunity is there, but it requires coordinated action across industry and government,” Lacaze said.
That will require investment in infrastructure, skills development and processing capability, alongside continued collaboration with international partners.
For Australia’s lithium sector, the opportunity is no longer just about what comes out of the ground. It is about how the country uses its mining strength to help build the supply chains, technologies and industries of the future.