Establishing supply chains

• establishing local processing and common-user facilities in NSW
• driving research and development and commercialisation of new technologies
• embedding circular economy practices into the sector

Why a focus

A dedicated, long-term vision to establish local processing, domestic manufacturing and recycling, NSW can play a major role in establishing secure supply chains.

Establishing advanced processing facilities will allow NSW to move beyond the traditional ‘dig and shift’ model. This transition will reduce reliance on overseas processing, increases economic returns and creates high-value jobs within the state. Investing in local manufacturing infrastructure enables NSW to produce essential components for renewable energy technologies and other high-tech industries. Integrating the critical minerals sector into the wider value chain strengthens our market position and ensures a more resilient and sustainable supply chain. NSW also has an opportunity to focus on critical minerals recovery from e-waste recycling. With the highest global per capita rate of household solar panel installations and the largest forecasted volume of spent battery materials in Australia, NSW is uniquely positioned to leverage these challenges into opportunities. The recovery and recycling of critical minerals from e-waste, spent batteries, and solar panels not only offers avenues to broaden the critical minerals industry but also support sustainable manufacturing practices by reducing waste to landfill. The state’s existing strengths in research and innovation form a solid foundation that could be leveraged to support the growth of our capability. Partnerships across government, industry and academia could drive further research and development and support local commercialisation.

What we heard

During consultation, stakeholders emphasised the need to invest in innovation, research, and development in NSW, whilst focusing on leveraging existing expertise for innovation in mining, processing and recycling technologies. Stakeholders raised interest in forming partnerships with research institutions and universities to enhance research and development capabilities. The potential for government support in research and development, particularly for downstream processing and recycling initiatives, was noted as vital for creating new markets and jobs. Feedback highlighted the importance of supporting local manufacturing, particularly in battery production and critical minerals processing, to boost the economy and reduce import reliance. Stakeholders also raised opportunities to embed circular economy practices linked to domestic manufacturing.

What we will do

• Investigate the potential for further processing of rare earth elements in NSW through a dedicated common-user refinery, in partnership with ANSTO and in collaboration with the Australian Government.
• Support investment in domestic manufacturing, including solar panel battery cell and grid-scale battery manufacturing and components for renewable energy.
• Forge partnerships to secure and scale homegrown innovation through collaboration with universities and research institutions, to explore metals re-processing and recycling.
• Promote circular economy approaches for mine waste through a dedicated program to incentivise safe and sustainable reprocessing and reuse of mine tailings.
• Support industry to access opportunities in the capture and recycling of metals and minerals from e-waste, spent batteries, and solar panels.
• Collaborate with the Australian Government to develop product stewardship schemes for solar panels and e-waste.
• Investigate ways to support the growth of the e-waste recycling industry in NSW, including program and infrastructure needs.
• Investigate ways to collaborate with the Australian Government and across NSW Government to support regional infrastructure development.