Australia faces a world of economic uncertainty and geopolitical shifts, from inflation and supply chain disruptions to rising great-power tensions. In response, the nation is placing big bets on strategic sectors to future-proof its economy. Here we spotlight four key sectors – and one Australian company in each – where forward-looking investments aim to bolster resilience and growth.
Clean Energy: Powering the Transition
To decarbonize its economy and strengthen energy security, Australia is accelerating clean energy investment. The federal government’s Hydrogen Headstart program is offering A$2 billion in support for large-scale green hydrogen projects, aiming to establish a world-leading hydrogen export market. These initiatives are intended to leverage Australia’s abundant solar and wind resources, while reducing dependence on fossil fuels and positioning the country as a clean energy powerhouse.
Critical Minerals: Securing Supply Chains
As global competition intensifies over minerals essential to clean tech and defense systems, Australia is leveraging its resource wealth to become a key non-China supplier. The federal Critical Minerals Strategy is driving downstream investments like processing and refining, backed by government funding and strategic alliances with the U.S., Japan, and the EU.
Defense: Building a Sovereign Industrial Base
Amid rising Indo-Pacific tensions and its commitments under the AUKUS security pact, Australia is scaling up defense spending and domestic production capacity. Key initiatives include building nuclear-powered submarines, long-range missiles, and maintaining a continuous naval shipbuilding program. This shift reflects a broader push for sovereign capability and integration into allied defense supply chains.
Agriculture: Innovating for Resilience
Australia’s farm exports generate over $70 billion annually, but the sector is vulnerable to climate disruptions and geopolitical trade tensions. Following China’s 2020–21 trade sanctions, Canberra has ramped up agri-tech innovation, infrastructure, and market diversification. Efforts like the ATMAC program aim to expand access to fast-growing Asian markets and reduce overreliance on any one trading partner.
Stocks to Watchout For
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