Harnessing our green metals industry as we transition to net zero
Green metals are a critical part of Australia’s transition to a net zero economy.
What are green metals?
Green metals refer to sustainably produced iron, steel, alumina and aluminium, often using renewable energy and innovative technology that replaces carbon-intensive processes.
These metals were identified as a priority under the Future Made in Australia National Interest Framework.
Why do we need to decarbonise metal production?
The global iron and steel industry contributes approximately 8% of direct global energy system emissions, and 10% if we count indirect emissions from electricity. Meanwhile, the aluminium sector accounts for around 3% of direct industrial global emissions, according to the Department of Industry, Science and Resources(Opens in a new tab/window). By decarbonising metal production, we can make a significant contribution to reducing global emissions.
With significant iron ore and bauxite reserves, along with an abundance of wind and solar resources and a highly skilled workforce, Australia has the potential to be a world leader in green metals.
How are the government and private sector supporting the green metals industry?
Across Australia, sustainable metal initiatives are already underway, supported by government and private sector investment.
In the Pilbara, Fortescue has launched its Green Metal Project which aims to produce over 1,500 tonnes of green iron annually, with first production anticipated this year. The plant will use hydrogen in a reduction furnace to convert iron ore into sponge iron, which is further processed in an electric smelting furnace to produce high purity green iron metal suitable for use in any steel plant globally.
In February 2025, the Australian Government launched the $1 billion Green Iron Investment Fund to boost green iron manufacturing, with up to $500 million earmarked for the transformation of the Whyalla Steelworks in South Australia. At least $500 million will be open to applicants right around Australia through a competitive process. Establishing Australia’s position as a green iron producer is crucial to maintaining Australia’s export base, creating a new domestic industry and helping to decarbonise domestic and global steel production.
The Australian Government is also investing $2 billion to assist Australian smelters to produce green aluminium through the Green Aluminium Production Credit(Opens in a new tab/window).
As the sixth largest producer of aluminium in the world, the Green Aluminium Production Credit will assist Australian aluminium smelters which are taking steps to decarbonise and transition to renewable energy by 2036 and net zero emissions by 2050.
Investment in green metals is critical for the net zero transition. These investments will help drive economic growth and sustainability and help position Australia to become a global leader in green metals.
What is the Authority’s role in the green metal transition?
The Authority is helping to unlock investment in the Net Zero Transformation Stream under the Future Made in Australia agenda. We are working across all levels of government and the private sector to facilitate the nation’s transition to a net zero economy.
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