The Department of Industry, Science and Resources has released the March 2023 Resources and Energy Quarterly (REQ), forecasting lithium and base metals products will earn roughly $47 billion in the current financial year.
According to the Australian Government, with higher prices and ongoing strong worldwide demand for the materials vital to low-emissions technologies, Australia has solidified its position as the world’s largest lithium miner.
Minister for Resources and Northern Australia Madeleine King stated that the estimated value of lithium exports has tripled since last year and is expected to reach $19 billion in 2022-23.
“Base metals and critical minerals such as lithium are crucial components of clean-energy technologies such as batteries, solar panels and wind turbines, which will help the world lower emissions and meet net-zero commitments,” Minister King said.
Minister King added that the latest REQ highlights the crucial relevance of Australia’s minerals sector and the country’s ambition to become a clean energy superpower.
“The Resources and Energy Quarterly forecasts that exports of lithium and base metals (and their raw material inputs) will equal the export value of combined (thermal and metallurgical) coal exports by 2027–28,” Minister King stated.
However, as prices continue to normalise, export revenues are expected to fall to $395 billion in 2023-24 and $346 billion in 2024-25.
According to Minister King, despite the global instability produced by Russia’s illegal and immoral invasion of Ukraine, Australia’s resources and energy exports remain startlingly resilient, demonstrating Australia’svitalt role as a steady and reliable supplier.
The REQ found that iron ore prices have risen sharply in 2023, suggesting a resurgence in Chinese steel output, with export revenues expected to be around $121 billion in 2022-23, compared to $132 billion in 2021-22.
It forecasts liquefied natural gas (LNG) earnings of $91 billion in 2022-23, up from $71 billion in the previous fiscal year, as higher prices more than offset the impact of lower LNG export volumes.
Although international coal prices have fallen, the REQ predicts that they will stay higher than they were prior to Russia’s invasion of Ukraine for the foreseeable future.
Despite weather events and COVID-19 delays affecting supply chains, Australia’s combined coal export revenues are expected to be $128 billion in 2022-23, up from $114 billion in 2021-22.
