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Labor’s $500m steel push: Albanese backs Aussie metals for renewables

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PM pledges major investment in local steel and aluminum, aiming to boost jobs and secure Australia’s renewable energy future

The federal government will allocate $500 million to ensure Australian-made steel and aluminium are used in renewable projects, including offshore wind farms. The funding, part of the $1.7 billion Future Made in Australia Innovation Fund, will set quotas to favour domestic materials.

Speaking in Wollongong, Prime Minister Anthony Albanese emphasised the importance of local manufacturing, announcing that wind tower fabrication would be the first project under the initiative. “Every new wind tower needs hundreds of tonnes of steel—why should that steel come from anywhere but here?” he said.

The initiative is designed to support steelmaking hubs in the Illawarra, Gladstone, the Hunter Valley, Bell Bay, and Portland. It follows last week’s $2.4 billion rescue package for Whyalla steelworks, reinforcing Labor’s commitment to revitalising Australian heavy industry.

The government will collaborate with unions and state governments to set ambitious local content targets. The plan aligns with broader efforts to transition the Illawarra economy, which has seen coal mine closures, towards renewable energy industries. The offshore wind sector is expected to generate 1,700 construction jobs and 800 ongoing roles in the region.

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However, the Coalition has pledged to scrap the offshore wind zone if elected, with Opposition Leader Peter Dutton instead promoting nuclear energy as a more cost-effective alternative.

The move also comes amid a tightening electoral battle in Whitlam, where Labor’s margin has fallen below two per cent. The opposition is fielding two candidates—Ben Britton for the Liberals and former NSW politician Katrina Hodgkinson for the Nationals—hoping to capitalise on local concerns.

Despite opposition from some community groups, grassroots activists argue that most locals back the offshore wind plan. Maddie Holme from Good For the Gong claims, “The vast majority of people are supportive or relaxed about it. The opponents are very vocal but a minority.”

The South Coast Labour Council, which represents local steelworkers, has long called for local procurement policies. Holme believes the government’s pledge is a “huge vote of confidence in the Illawarra,” ensuring renewable projects provide long-term employment and industry growth.

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