AustralianSuper CEO, Ian Smith, has announced plans for “out-sized investments” in the energy transition sector for the next five years and beyond. This declaration comes on the heels of the Australian government’s A$22.7 billion commitment to its Future Made in Australia program, with a focus on industries related to critical minerals, hydrogen, and green metals.
As Australia, along with allies like the US, aims to reduce China’s dominance in critical minerals production, AustralianSuper is positioning itself as a major player in the sector. With existing stakes in companies like Sandfire Resources Ltd. and Pilbara Minerals Ltd., the pension fund is increasing its exposure to minerals like lithium, cobalt, and graphite.
The rapidly growing A$3.7 trillion pension industry in Australia is looking for opportunities both domestically and internationally, with an influx of A$2 billion in inflows each week. Smith highlighted the potential for more critical minerals companies to list on the Australian stock exchange, while also exploring investments in high-quality companies listed in London.
Policy certainty is key for AustralianSuper, as Smith emphasized the importance of stable regulations for attracting investments. The recent enactment of the Inflation Reduction Act, offering tax incentives for electric vehicles utilizing materials from free-trade partners like Australia, is seen as a positive step towards driving investment in the energy transition sector.
With a clear strategy and a focus on emerging opportunities, AustralianSuper is poised to capitalize on the global shift towards decarbonization and sustainable energy practices.
