The Australian federal government has announced that the National Development Stream of the Green Iron Investment Fund, committing A$500 million in grant funding to accelerate the country’s green iron industry, will be launched in a short while.
The fund will incentivize private investment and support both existing facilities and new greenfield projects, aiming to establish large-scale domestic green iron production by 2031. This effort leverages Australia’s natural advantages, including vast iron ore reserves, renewable energy capacity, and advanced industrial expertise. Applications will be open on October 28, 2025, and close on January 16, 2026.
Economic opportunity
Independent studies underscore the transformative potential of green iron:
Research by the Minerals Institute of Western Australia estimates that one green iron plant could add A$85 billion to GDP, contribute A$2.4 billion in real income annually, and create over 1,500 full-time jobs.
A separate Accenture report projects that a green metals industry could deliver up to A$122 billion in export revenue annually by 2040.
Policy measures supporting green metals
The Green Iron Investment Fund is part of a broader national strategy to make Australia a global hub for green metals. Complementary initiatives include:
- A$2 billion Green Aluminum Production Credit to help smelters transition to renewable power
- A$750 million Future Made in Australia Innovation Fund to drive green metals innovation
- A$10 million Commonwealth Scientific and Industrial Research Organization (CSIRO)-led Green Metals Innovation Network to foster R&D collaboration
- A$180 million Australian Economic Accelerator for commercialization of research in green metals, hydrogen, and critical minerals
Government’s vision
Tim Ayres, minister for industry and innovation and minister for science, emphasized that green iron presents a once-in-a-generation opportunity: “Green iron is a major opportunity to grow Australia’s iron ore industry and build a new industrial sector. This A$500 million investment lays the foundation for a multibillion-dollar industry and thousands of good, secure jobs.”
He added that the initiative will boost regional economies, reduce emissions, and help Australia achieve its climate targets, while ensuring the country becomes a first mover in global green iron trade.