The defence sector has taken centre stage at Avalon 2025, the largest aerospace and defence expo in the Southern Hemisphere, held in Victoria from 25-30 March. The event, which includes industry-only days and a public air show, has highlighted the critical role of Australia’s defence industry, generating over $8.4 billion annually and employing 24,000 people. Victoria’s Minister for Industry and Advanced Manufacturing, Colin Brooks, emphasised the state’s commitment to the defence industry, noting that the Victorian Government is backing growth in critical sectors like advanced manufacturing and defence through its Economic Growth Statement.
Brooks highlighted homegrown success stories such as Cablex, Corvus Technology Solutions, Marand, Ronson Gears, and SYPAQ, which were in attendance at Avalon 2025. The expo provided a platform for these companies to showcase their innovations and connect with global industry leaders. Western Australia’s Defence Industries Minister, Paul Papalia, echoed this sentiment, stating that Avalon 2025 offers an opportunity to showcase Australia’s defence strengths on the global stage and for small-to-medium enterprises (SMEs) to engage with key international players. “Our government, together with industry, is helping to shape the future of national security,” Papalia asserted.
The expo featured local exhibitors like Wedgetail Aerospace, a defence drone service provider, and Innovaero, a company developing remote piloted aircraft systems. The Western Australian Government led a delegation of 34 local SMEs across the defence, aviation, aerospace, and space markets, underscoring the state’s rich mineral resources critical to the defence industry. Papalia noted that Western Australia is enriched with a suite of minerals and metals essential for defence, aligning with the nation’s focus on defence-critical raw materials.
Australia’s list of 31 critical minerals includes high-purity alumina, antimony, gallium, graphite, indium, lithium, manganese, nickel, rare earth elements (REEs), tungsten, and vanadium, among others. These minerals are crucial for modern technologies, economies, and national security, particularly in priority technologies outlined in Australia’s Critical Minerals Strategy. The list highlights minerals with geological potential, high demand from strategic partners, and vulnerability to supply chain disruptions.
In December 2024, NATO published a list of 12 defence-critical raw materials, including aluminium, beryllium, cobalt, gallium, germanium, graphite, lithium, manganese, platinum, rare earth elements, titanium, and tungsten. These minerals are indispensable for military hardware, from jet engines to missile guidance systems. However, many Western nations face concerns over China’s dominance in the global processing capacity for these raw materials. China has been securing control over key material supply chains, investing heavily in mining-related foreign direct investment projects between 2019 and 2024.
Manganese, one of NATO’s defence-critical raw materials, is a focal point for several ASX-listed companies. Black Canyon, for instance, completed benchtop scale beneficiation testwork on composite reverse circulation drill chip samples from the W2 prospect at the Wandanya Project, indicating potential for high-quality manganese concentrate. Firebird Metals is advancing its Oakover Project in Western Australia, aiming to secure a natural cost advantage in lithium-manganese-iron-phosphate (LMFP) cathode production.
Rare earth elements (REEs) are another critical component for the defence industry. The International Energy Agency’s Global Critical Minerals Outlook 2024 report shows a significant increase in demand for magnet REEs, driven by defence and clean energy technologies. REEs are used in various applications, from military equipment to electric vehicles and batteries. Heavy rare earth elements (HREEs) are particularly vital for defence technology, with elements like dysprosium, terbium, and yttrium used in high-performance magnets, lasers, and aerospace components.
Australia, with at least 4% of global REE reserves, is well-positioned to capitalise on this growing market. Companies like Critica, Victory Metals, ABx, and American Rare Earths are at the forefront of developing REE projects. Critica’s Jupiter Project in Western Australia has a significant inferred resource, while Victory Metals’ North Stanmore Rare Earth Project boasts a substantial mine life and high resource quality. ABx and American Rare Earths are also advancing their REE projects, focusing on producing high-value rare earths and securing strategic partnerships.
The developments at Avalon 2025 and the focus on critical minerals highlight Australia’s strategic positioning in the global defence and technology sectors. As the nation and its states invest in and showcase their defence capabilities, the stage is set for significant growth and innovation. The expo’s emphasis on connecting local SMEs with global industry
