Albanese plans local content targets as part of $500 million investment into clean energy manufacturing

The Australian government has committed $500 million to support the use of locally made steel and aluminium in the onshore manufacturing of clean energy technologies, including batteries, wind turbines, and hydrogen electrolysers.

February 24, 2025 David Carroll

Image: Nextracker

The federal government has pledged to establish new local content targets for Australian-made steel and aluminium to be used in the manufacturing of components critical to the renewable energy industry as part of a new $500 million (USD 318.25 million) funding announcement.

Prime Minister Anthony Albanese has committed $500 million of the $1.7 billion Future Made in Australia Innovation Fund to ensure locally made steel and aluminium are used in the domestic manufacturing of components critical to the clean energy industry, including battery and storage technologies, wind tower fabrication, and electrification technologies.

“Every new wind tower needs hundreds of tonnes of steel, why should that steel come from anywhere but here,” he said, adding that the federal government will work to set new local content requirement targets for state and territory governments to buy content from local manufacturers.

“We want local content to become the national standard, and we’ll lead by example.”

Speaking in Dapto on the New South Wales south coast on Friday night, Albanese said the package will help Australian manufacturers to capitalise on the opportunities that the energy transformation brings.

“We will put Australian steel in every link of the supply chain. And we will help Australian workers benefit in every part of the country,” he said.

The $500 million allocation from the Innovation Fund, administered by the Australian Renewable Energy Agency (ARENA), will provide merit-based grants for manufacturing opportunities in renewable energy sectors.

Federal Energy Minister Chris Bowen said the investment will ensure Australian manufacturers have the backing they need to scale up and seize the opportunities the nation’s clean energy transition offers.

“We’re ensuring Australian manufacturers directly benefit from the renewable energy investment boom Labor is delivering, by investing in local industry to manufacture the technology we need for the transition, right here,” he said.

“This is what a Future made in Australia is all about – securing our place in the world, from our critical minerals in the ground, to harnessing the sun in the sky – and building the infrastructure we need to unlock it all here on our shores.”

The announcement comes after the federal government late last week unveiled the $1 billion Green Iron Fund designed to boost green iron manufacturing and supply chains by supporting early mover green iron projects and unlocking private investment at scale.

That came after it had teamed with the South Australia government to provide a $2.4 billion support package for the Whyalla Steelworks.

The funding is designed to provide support for the business which was forced into administration by the South Australian state government earlier in the week.

The commitment includes $100 million for what the federal government described as “on the ground” support in Whyalla, including $50 million for creditor assistance payments and almost $33 million for infrastructure upgrades.

An additional $384 million will fund the steelworks’ operations during the period of administration, ensuring “workers and contractors will have ongoing work at the steelworks and will continue to be paid.”

The government said $1.9 billion had been set aside for new infrastructure under a new owner and was “vital to ensuring the steelworks has a sustainable, long-term future.”

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