Portfolio — 7 August 2026

The Minister for Climate Change and Energy advanced two strands of the government's decarbonisation agenda on 7 August 2026, announcing support for a new lithium refining technology in Western Australia and releasing a consultation paper to review the Safeguard Mechanism. Both moves extend the portfolio's recent emphasis on regulatory architecture for the energy transition, broadening it to encompass sovereign critical minerals capability and the next phase of industrial emissions policy.

**Critical minerals processing**

The Minister announced a $2.9 million grant to Electralith Pty Ltd through the Australian Renewable Energy Agency to pilot a lithium refining technology in Western Australia [TA-260807-climat-46f0141359fc]. The technology is described as reducing water use and emissions compared to conventional refining methods [TA-260807-climat-46f0141359fc]. The grant supports domestic processing capability for critical minerals, an area the portfolio has identified as strategically important for the energy transition.

**Safeguard Mechanism review**

The Minister released a consultation paper reviewing the Safeguard Mechanism [TA-260807-climat-fe43c49d07dd]. The paper states the scheme is delivering emissions reductions as intended and seeks stakeholder feedback on settings to support the 2035 net zero target while maintaining industrial competitiveness [TA-260807-climat-fe43c49d07dd]. The review opens a public consultation process on how the mechanism's design should evolve to meet deeper decarbonisation goals.

**Synthesis**

The two announcements reflect a portfolio operating across both the supply and demand sides of the energy transition. The Electralith grant targets upstream minerals processing innovation. The Safeguard Mechanism review addresses downstream industrial emissions constraints.

Together they extend the regulatory framework the portfolio has been building, from critical minerals capability through to industrial compliance architecture for the 2035 target.