Over two-thirds of all Australian exports come from the mining industry, which accounts for around 13.7% of the nation’s GDP, per CleanTechnica. Now, the recently released Resources and Energy Quarterly (REQ) suggests that Australia would hit a record-breaking $459 billion revenue from the industry in 2022–2023.
Remarkably, that growth occurs after a global decline in the Australian currency and a rise in energy costs. However, it is predicted that export earnings will drop to $391 billion in 2023–2024 due to the weak global economy and supply constraints.
Lithium
The mining industry in Australia is projected to thrive due to the rising demand for electric vehicles and greener energy sources. In fact, it is among the countries that lead the production of critical components for lithium batteries and the energy transition.
The Commonwealth of Australia Resources and Energy Department of Industry, Science and Resources (the “Department”) estimates that due to this high demand, lithium export revenues will surpass $16 billion in 2022–23. Notably, that amount significantly increased from just $5 billion in 2021–2022.
Nickel
Australia’s nickel export volumes are expected to increase from 157,000 tonnes in 2021–2022 to 188,000 tonnes in 2023–2024, according to the Department. It would not be impossible to reach as there is a high demand for Australian nickel in the shift to sustainable technologies.
In addition, the report claims that a YoY growth of 64% to 11 million units is predicted for electric vehicle sales in 2022, from just 6.7 million units in 2021. That said, a 42% increase in nickel consumption in EV batteries is anticipated in 2022.
Copper
Australia is the second-largest holder and fifth-largest producer of copper worldwide.
For reference, Copper exports totaled $12 billion in 2021–2022. By 2023–2024, it is projected to increase to 895,000 tonnes as output from new mines and mine expansions ramp up.
Meanwhile, export revenues are anticipated to rise to around $13 billion due to increased production and export volumes in 2023–2024.
All that said, Australia is well-positioned to aid the shift to electric vehicles since it includes five times as much copper than ICE vehicles.
Nonetheless, the market for EV batteries is still in its infancy, with significant growth ahead. It will be fascinating to observe which battery technology emerges as automakers develop new electric cars with distinctive features.
