About the Critical Minerals Strategic Reserve

The Critical Minerals Strategic Reserve (CMSR) secures supply of select critical minerals for Australia and our key international partners.

Critical minerals and rare earths are vital inputs to the modern and future economy. They underpin the energy transition, high tech manufacturing, AI, digital and defence technologies.

The CMSR supports strategically important critical minerals projects where private finance is not available due to volatile markets. This helps:

  • address supply chain vulnerabilities
  • mitigate against market distortions
  • build a sustainable domestic industry.

With other measures for critical minerals, the CMSR reinforces Australia’s position as a reliable and stable supplier.

It also supports Australia’s collaboration with key international partners to diversify critical minerals supply chains:

  • Canada
  • Europe
  • Japan
  • Republic of Korea
  • United Kingdom
  • United States.

How the CMSR works

The Minister for Resources leads the CMSR and our department leads delivery. The Export Finance and Insurance Corporation Amendment (Strategic Reserve) Act 2026gives Export Finance Australia (EFA) an expanded range of financial tools to support the CMSR’s financial and commercial functions. We work together with the Department of Foreign Affairs and Trade to engage with international partners.

The CMSR draws on $1 billion in funding from the expanded $5 billion Critical Minerals Facility. The Australian Government has allocated a further $150 million for selective stockpiling of minerals, where required. 

The CMSR works by securing rights to an initial subset of critical minerals produced in Australia and on-selling those rights to meet demand. Support for projects depends on the needs and conditions of specific mineral markets. This allows Australia to respond to fast-moving market dynamics and the unique circumstances of different minerals.

Critical minerals in focus

The CMSR secures an initial subset of critical minerals from Australia’s Critical Minerals List.

Critical mineral Example of critical uses
Antimony
  • improving flame-retardancy and heat-resistance in storage batteries
  • increasing electrical conductivity and switching speeds in high-powered, specialty electronics
Gallium
  • building, debugging and repairing advanced computer chips to deliver high-efficiency power
Light rare earth elements (LREEs) particularly neodymium and praseodymium
  • enabling power-to-weight efficiency for high-performance neodymium-iron-boron (NdFeB) permanent magnets
Heavy rare earth elements (HREEs) particularly dysprosium and terbium
  • adding to NdFeB magnets to greatly improve their performance and durability in extreme conditions

The minerals were selected on:

  • suitability: critical minerals with vulnerable supply chains where Australia has the strongest potential to meet demand
  • priority: critical minerals most important for Australia’s national security and economic resilience
  • potential: existing Australian projects in the pipeline that could meet identified needs.

Financial solutions and tools

The CMSR’s financial tools can secure, sell and selectively stockpile critical minerals for eligible projects. We’ve listed the main tools below.

Tool Details
Offtake agreements Long-term purchase deals that guarantee a buyer for a product. This can be at a set price or one that moves with the market.
Trading in forward offtake contracts Selling or buying future supply agreements now. This locks in a price and reduces risk before production happens.
Intermediary demand and supply aggregation A middle party combines demand from multiple buyers and supply from multiple producers. This creates scale and stability.
Stockpiling Building and holding reserves of critical materials to ensure security and buffer against shortages or price shocks.
Contracts-for-difference (price floors and ceilings) If market prices fall below an agreed floor, the government tops it up. If prices rise above a ceiling, industry pays the government back. This stabilises costs and encourages investment in sectors with volatile prices, while protecting taxpayers from price spikes.

Eligibility

Proposals from Australian critical minerals projects will be considered.

Projects must:

  • relate to extracting or processing minerals in Australia
  • fall within the CMSR mineral subset
  • have completed a pre-feasibility study, or be able to complete it quickly
  • need at least $20 million of funding, financing or offtake support.

We may also support projects that have downstream mineral users and international partners. For example, through supply aggregation and matching, or co-investment opportunities with strategic international and domestic partners.

Application process

Critical minerals projects

  • Apply

    Submit your proposal for financial support.

  • Review

    The CMSR team will review your proposal to see if it’s eligible. We work in consultation with EFA and the Department of Foreign Affairs (DFAT).

  • Engage

    We’ll reach out to discuss your proposal in more detail, including alignment with the objectives of the CMSR and to explore options for potential support. We may consult across government on these details.

  • Due diligence

    If it is determined your project is eligible and suitable for support, your proposal will proceed through due diligence. EFA will lead this process.

  • Approval

    Government will consider your proposal.

  • Support

    If approved, EFA will work with you and your company to set up and manage your contractual arrangements. 

Downstream mineral users and international partners

  • Contact us

    Email the CMSR team at CMSR@industry.gov.au. Please include details of the mineral(s) you are seeking, including their specifications and quantity. Minerals must be from the CMSR mineral subset.

  • Engage

    We’ll engage with you to explore potential opportunities.

More information

Learn more about how we are growing the critical minerals industry
Get support from the Critical Minerals Office
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