Australia's green aluminium roadmap: 9 key developments driving clean energy transition

Australia’s aluminium industry is entering a defining phase of its transition. As demand for low-carbon aluminium accelerates worldwide, the country is seeking to leverage its abundant renewable energy resources, supportive policy framework and growing industrial investment to emerge as a major producer of green aluminium.

According to the Australian Energy Market Operator (AEMO), Q1 2026 saw renewable generation and battery storage play an increasingly prominent role in the National Electricity Market (NEM), reinforcing the country’s broader decarbonisation strategy.

Here’s a chronological look at the major developments between early 2025 and Q1 2026 that have collectively strengthened Australia’s roadmap towards cleaner aluminium production.

January 2025: AUD 2 billion Green aluminium production credit

Australia’s clean aluminium transition received a major boost in January 2025, when Prime Minister Anthony Albanese unveiled a AUD 2 billion Green Aluminium Production Credit programme.

The initiative is aimed at reinforcing Australia’s aluminium smelters’ transition from fossil fuel-based electricity to renewable energy. The production credits will be available over ten years till 2036, providing financial support to smelters producing lower-carbon aluminium.

Late 2025: Bell Bay smelter’s 14-month interim power supply

Towards the end of 2025, Bell Bay Aluminium secured a 14-month electricity supply agreement, ensuring continued operations at Tasmania’s aluminium industry while negotiations continue for a longer-term renewable electricity contract.

However, in July 2026, the smelter permanently ceased operations, winding down after the 14-month interim period. 

Delve deeper into the recycled aluminium and secondary aluminium market with our World Recycled ALuminium Market Analysis Industry forecast to 2032

October 2025-March 2026: AUD 300 billion clean industry roadmap

In October 2025, Mission Possible Partnership (MPP) and the Industrial Transition Accelerator (ITA) released a roadmap for Australia’s opportunity to unlock about AUD 300 billion in clean industrial investments.

Around 70 large-scale projects in low-carbon manufacturing sectors, including aluminium, have been identified with recommended policy measures like government-backed green procurement, carbon contracts for difference etc.

The objective is to stimulate domestic demand for green industrial products while accelerating Australia’s industrial decarbonisation. The target timeline is 2026 onwards.

January 2026: Policy momentum builds around energy storage

In January 2026, the Australian federal government committed AUD 500 million (USD349.4 million) towards battery manufacturing and storage deployment, alongside expanding auctions for dispatchable renewable power.

These initiatives aim to improve grid stability, support greater renewable energy integration and reduce dependence on conventional generation as Australia transitions towards cleaner electricity.

February 2026: Australia-India critical minerals cooperation

His Excellency Kevin Goh, the Australian Consul-General in Kolkata, reaffirmed Australia’s strategic partnership with India on critical minerals during the 4th edition of Global Metals and Mining Meet, held in Kolkata, India, in February 2026.

The collaboration focuses on strengthening supply chains for minerals essential to clean energy technologies.

March 2026: Renewable electricity’s new milestone

Australia’s renewable electricity sector crossed another significant milestone during March 2026, with utility-scale solar and wind generation surpassing 5 TWh.

Battery discharge reached 245 GWh and utility-scale battery capacity under operation or development exceeded 8 GW. 

Unlock key insights from leading companies and experts across the aluminium ecosystem with our e-Magazine - Mine to Market: ALuminium Producers & Manufacturers 2026

March 2026: CADE approves Rio Tinto-Chinalco transaction

Brazil’s antitrust authority, CADE, approved in March 2026 for Rio Tinto and Chinalco to acquire a controlling stake in Companhia Brasileira de Alumínio (CBA).

The approval paves the way for Rio Tinto to strengthen its portfolio of low-carbon aluminium assets for global markets while expanding its presence in South America’s aluminium sector.

March 2026: Rio Tinto and Prysmian launch low-carbon cable trial

Rio Tinto partnered with Prysmian in March 2026 to begin trials of low-carbon aluminium cables designed for data centre infrastructure.

The collaboration aims to demonstrate how low-carbon aluminium can support the rapidly growing digital infrastructure sector while reducing embodied carbon in power transmission systems.

The initiative also showcases new downstream applications for sustainably produced aluminium.

March-April 2026: Government considers support for Tomago Aluminium

During March-April 2026, the Australian Government evaluated a USD 470 million subsidy-backed electricity support package for Tomago Aluminium.

The proposal is intended to help secure the long-term future of Australia’s largest aluminium smelter by lowering electricity costs during its transition towards renewable power.

If implemented, the package would help preserve domestic aluminium production while supporting national decarbonisation objectives.