Global demand for energy is pushing Australiaโs resources and energy export revenues to new highs, with an ongoing surge in demand for materials needed for low-emissions technology such as batteries, solar panels and electric vehicles.
Minister for Resources and Northern Australia Madeleine King said theย Resources and Energy Quarterlyย publication for the September quarter 2022 forecasts Australian resources and energy exports to earn a record $450 billion in 2022โ23, before easing to $375 billion in 2023โ24.
She said the strong export revenue driven by the resources sector is supporting Australiaโs economy and providing a welcome boost to Government revenue ahead of the 25 October budget.
โTheย Resources and Energy Quarterlyย report for the September quarter 2022 underlines the importance of the sector for Australiaโs ongoing economic wellbeing, and shows the outlook for Australian resources and energy remains strong,โ Minister King said.
โThe Treasurer has noted that the current high prices have helped contribute to a $27 billion boost to the budget bottom line for 2021โ22, with the sector continuing to support our economy and more than 270,000 jobs.โ
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The record forecasts follow last-yearโs $422 billion result, and comes despite easing iron ore prices and demand. Driving the rise in 2022โ23 is the search for alternative sources of energy following Russiaโs invasion of Ukraine, and a surge in the US dollar against the Australian dollar.
Minister King said Australia is experiencing strong growth in demand and prices for minerals that are crucial for low-emissions technology, such as lithium, copper and nickel, due to growing demand for electric vehicles, batteries and cleaner energy.
โThe Australian Government is strongly backing our critical minerals sector, which provides the crucial minerals needed to help Australia and the world meet our net zero commitments,โ Minister King said.
โTheย Resources and Energy Quarterlyย forecasts combined export earnings from copper, nickel and lithium are forecast to reach around $33ย billion in 2022โ23 from $22 billion in 2021โ22.
โLithium exports are continuing to grow, on the back of demand for batteries and electric vehicles. Lithium export earnings are forecast to increase more than ten-fold in just two years, from $1.1 billion in 2020โ21 to almost $14 billion in 2022โ23 before easing to around $13 billion in 2023โ24.
โLithium export volumes are expected to grow steadily as Australia maintains its position as the worldโs largest lithium miner.
โRussiaโs unconscionable invasion of Ukraine has also led to record prices for LNG and coal exports, which are forecast to earn Australia $90 billion and $120 billion, respectively, in 2022โ23.โ
Theย Resources and Energy Quarterlyย attributes lower iron ore prices over the past quarter to slowing global growth and weakness in Chinaโs housing sector. Iron ore prices are expected to ease further, as world supply grows faster than demand.
Iron ore export earnings are forecast to ease from $119ย billion in 2022โ23 to $95 billion in 2023โ24, reflecting moderating prices, more modest growth in global steel output, and rising iron ore supply.
Originally published by The Hon Madeleine King MP Minister for Resources and Minister for Northern Australia