Federal critical minerals funding opens new opportunities for central Victoria

Two proposed critical minerals processing facilities in the Bendigo region have been shortlisted for funding from the National Reconstruction Fund's critical minerals and clean energy stream, potentially establishing central Victoria as a significant location in Australia's critical minerals processing supply chain.

The shortlisted projects include a lithium hydroxide processing facility proposed by an ASX-listed company that would use lithium spodumene from the Pilbara and process it into battery-grade material, and a rare earth separation facility that would process mixed rare earth chlorides sourced from projects in WA and South Australia. Both facilities have identified Bendigo's existing industrial infrastructure, workforce, and transport connections as advantages over greenfield sites.

Federal Industry Minister Ed Husic said the critical minerals program was designed to capture more value from Australia's resource wealth domestically rather than exporting raw materials for processing and manufacturing offshore. "For too long we've dug it up and shipped it out. The NRF is here to change that," he said.

A final funding decision on both facilities is expected within six months. If both proceed, the combined investment would total approximately $680 million and create an estimated 580 permanent operational jobs, making the critical minerals sector a material employer in the Bendigo economy within five years of commencing production.

La Trobe University's Bendigo campus is exploring partnership arrangements with both proponents to develop chemistry and process engineering training programs aligned with the facilities' workforce needs, building on the university's existing mining and environmental engineering strengths.

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