Australia is set to benefit from exploding global demand for critical minerals amid concern over a decline in the nation's manufacturing.
The Intergenerational Report, to be released by Treasurer Jim Chalmers on Thursday, will show critical minerals and advanced manufacturing are opportunities that can grow Australia's economy over the next four decades.
The report notes global demand for critical minerals will increase by about 350 per cent by 2040, as countries move to meet the net zero emission target by 2050.
Australia has vast reserves of lithium, nickel, zinc and bauxite, all critical for clean energy technology production, with lithium exports expected to double over the next five years.
Global demand for lithium could be more than eight-times higher by 2063.
"Australia has potential for more undiscovered minerals, with around 80 per cent of land mass largely under-explored," extracts of the report read.
"Substantial growth is projected in minerals, including critical minerals, that are essential to the net zero transformation."
Australia is one of the few countries in the world that has all three key elements of the aluminium industry - bauxite mining, alumina refining, and aluminium smelter operations.
Aluminium is important for a number of technologies and features in electric vehicles, wind turbines and batteries.
Dr Chalmers said the government was investing more than $3.5 billion in the growth of the sector and forming new partnerships with trading partners to reap the rewards.
"We have the chance to do more than just rip and ship our minerals - we can mine, refine and manufacture them as well, creating more jobs and more opportunities for more Australians into the future," he said.
"This is our big chance and our big opportunity to deepen and broaden our industrial base and usher in a new era of economic prosperity for our country."
The hoped-for boon from critical minerals would boost the nation's manufacturing, from which output has declined by more than four per cent in the last decade, compared to a 26 per cent rise in the broader economy.
Australia has the highest dependency on manufactured imports and the lowest level of manufacturing self-sufficiency of any OECD country, indicating deficits in Australia's sovereign capabilities.
Resources Minister Madeleine King said the road to net zero would run through the sector.
"If we are to confront the challenges of climate change we will need more mining, not less," she said.
"The world will need our critical minerals to build the batteries and wind farms and solar panels needed to power the energy transition."
