$80 million Boost to Develop NZ’s Critical Minerals Industry

The Government has ring-fenced $80 million from the Regional Infrastructure Fund to accelerate the development and processing of New Zealand's domestic critical minerals, positioning the country as a reliable player in an increasingly competitive global supply chain.

Foreign Minister Winston Peters and Regional Development and Resources Minister Shane Jones say the targeted investment signals New Zealand's intention to move beyond raw extraction and build higher-value capability in a sector central to modern economies.

Strategic Minerals at the Centre of Global Competition

Critical minerals — including rare earth elements and other strategic resources — are essential inputs in:

• Clean energy technologies such as wind turbines and solar panels

• Electric vehicles and battery storage

• Aviation and defence systems

• Medical technology and advanced electronics

"Critical minerals are used everywhere, from clean energy technologies and electronics to aviation, medical technology and more. They are essential to modern life," Mr Peters said.

A year ago, the Coalition Government released its Minerals Strategy and Critical Minerals List, identifying priority resources considered vital for economic security and technological advancement.

Since then, global competition for secure supply has intensified, with countries actively seeking diversified sources outside traditional suppliers.

"With global demand clearly rising, New Zealand is in a position to be a credible and reliable source of critical minerals and an essential link in the international supply chain," Mr Peters said.

From Extraction to Processing and Technology

The $80 million package is designed not only to support extraction but also to encourage domestic processing capability — a move aimed at capturing greater economic value within New Zealand.

"By backing the extraction and processing of our own critical minerals resources, the New Zealand Government is sending a message to the world that we are serious about contributing to the critical minerals market," Mr Peters said.

Mr Jones emphasised that regional New Zealand stands to benefit significantly.

"Our regions hold substantial deposits of critical minerals that could support a strong, sustainable economic recovery and position the country at the forefront of high-value industries," he said.

The Government says supporting processing innovation could open new commercial pathways, including:

• Advanced mineral refining technologies

• Exportable processing expertise

• Infrastructure upgrades in regional centres

• Long-term skilled employment growth

"It's important that we think beyond just extraction when it comes to critical minerals," Mr Jones said.

"Developing advanced processing techniques and technology that could help other countries to unlock their resources is an equally exciting prospect."

Strengthening National Resilience and Regional Economies

Ministers argue that expanding domestic capability will:

• Create new regional jobs

• Build national self-sufficiency

• Improve supply chain resilience

• Attract international partnerships and investment

The funding comes amid growing geopolitical attention on critical mineral security, particularly as countries seek to safeguard supply chains for clean energy transitions and advanced manufacturing.

"Given the scale of opportunity, and the importance of the sector to regional development, it makes sense to create this $80m package to help realise those benefits while supporting our Minerals Strategy," Mr Jones said.

Funding Process and Next Steps

Projects that already meet the Regional Infrastructure Fund criteria and have submitted applications will be assessed under the new allocation. The Government will also accept applications for new qualifying projects.

Successful investments will be announced once evaluations are complete and ministerial decisions are made.

Mr Peters said engagement with international partners and the New Zealand public will continue as policy proposals and project opportunities evolve.

"We will continue to engage with the New Zealand public appropriately, as and when policy and project proposals around critical minerals are developed," he said.

With global demand for critical minerals accelerating and supply security becoming a strategic priority for many economies, the Government's $80 million commitment marks a significant step toward embedding New Zealand in high-value international supply chains while driving regional economic growth.