Australia’s resource and energy export sector is expected to see a decline in export values over the next two years. The Resources and Energy Quarterly report from the Department of Industry, Science and Resources reveals that after achieving a record high of $467 billion in 2022-23, export values are forecasted to ease to $400 billion in 2023-24 and further to $352 billion in 2024-25.
This forecast is attributed to a return to more normal commodity prices, driven by softening global demand and stabilized global supply.
Australia’s Role in the Global Battery Value Chain
Australia plays a significant role in the global battery value chain, exporting essential battery minerals such as lithium, cobalt, copper, and nickel. The surging demand for electric vehicles continues to drive increased demand for these battery metals. The report underscores the importance of Australia’s position in supplying critical minerals, especially in the context of global efforts to decarbonize and reduce emissions.
Commodity Outlook
The Resources and Energy Quarterly provides insights into the outlook for various commodities, including iron ore, LNG, lithium, metallurgical coal, and thermal coal. Iron ore export earnings are expected to decline from $124 billion in the previous financial year to $120 billion in 2023-24, with further decreases anticipated.
LNG earnings are forecasted to decrease from $93 billion in 2022-23 to $71 billion in the current year and $63 billion in 2024-25. Australian lithium exports are also expected to decrease, reaching $18 billion this year and $16 billion in 2024-25. Additionally, earnings from metallurgical coal and thermal coal are expected to ease over the forecast period.
Australia’s resource and energy sector remain vital to the country’s economic well-being, with the potential to adapt to changing global market conditions while continuing to meet demand for critical minerals and energy resources.
