Australia could stake a massive claim on the world's booming critical minerals market, a report has found, but only if policymakers, researchers, mining firms and investors act quickly.
The CSIRO issued the warning on Wednesday in a report examining Australia's processing capabilities for in-demand minerals and opportunities in the industry valued at $482 billion ($US320 billion).
Critical minerals such as lithium, cobalt, graphite, silicon and rare-earth elements are used to make electric vehicles, solar panels and wind turbines, and demand for the minerals has doubled over five years.
The CSIRO report, From Minerals to Materials, found Australia was uniquely placed to play a significant role in the industry due to its rich mineral resources, institutions and active research sector.
But the study also identified weaknesses in the nation's current approach, finding it was advanced in some areas, such as lithium and cobalt research, patents and pilots, but had limited experience in others, such as rare-earth research or solar panel recycling patents.
"The opportunity for new suppliers to enter the critical minerals market is now, however insufficient coordination and understanding of existing capabilities and technology pathways could hinder Australia's progress," the report found.
It also called for greater investment in research, development and demonstration projects, particularly those that could uncover more efficient and environmentally friendly methods of processing critical minerals.
CSIRO Futures minerals lead Max Temminghoff said the report proved Australia had the potential to create clean energy exports that were "essential to the energy transition and in high global demand".
"By fostering innovation and collaboration, Australia can ... capitalise on the international demand for minerals needed to support the energy transition," he said.
Australian Critical Minerals Research and Development Hub manager Lucy O'Connor said she hoped the report would provide guidance to the industry, partners and investors about opportunities and challenges in the sector.
Greater research funding, she said, could help Australia boost its mid-stream minerals processing and establish environmental, social and governance guidelines.
"We need to ensure research is targeted to industry problems and outcomes and can be developed into commercially applicable technologies," she said.
The report also forecast demand for critical minerals to grow, predicting global demand for lithium would continue to rise with the popularity of electric vehicles and with the emergence of next-generation battery technology.
