Australia poised as ‘global resource rising star’ in electrified world: IEA chief
Australia is emerging as a potential “global resource rising star”, with its vast reserves of critical minerals and established mining capabilities positioning it at the centre of the energy transition and the rapid rise of artificial intelligence (AI)-driven infrastructure.
Speaking at the National Press Club earlier this week, International Energy Agency (IEA) executive director Dr Fatih Birol pointed to Australia’s unique resource base as a defining advantage in the global energy landscape.
“When I look at the resources that Australia has, from LNG [liquified natural gas] to lithium, from lithium to copper, from copper to cobalt … Australia can well be a rising star of the global energy economy, because you have everything here,” Birol said.
The comments come amid heightened global energy concerns, which have reinforced the urgency of diversifying energy systems – something Birol indicated Australia is well placed to do.
Critical minerals underpin new energy economy
At the heart of this diversifying shift is an accelerating move towards electrification, with renewables dominating new power-capacity additions globally.
According to Birol, 85 per cent of new power generation installed last year was renewable, with solar accounting for roughly three-quarters of that growth. Battery installations surged 40 per cent, while electric vehicles (EVs) now represent a quarter of global car sales.
Such shifts are being seen across the Australian resources industry, with Tier 1 miners trialling and successfully implementing electrification across their operations.
These technologies are heavily reliant on minerals for which Australia holds significant global market share.
Lithium and cobalt are central to battery chemistries used in EVs and grid-scale storage, while copper is critical for transmission networks, motors, and renewable energy infrastructure. By grouping LNG, lithium, copper and cobalt together, Birol underscored Australia’s dual role as a traditional energy exporter and a key supplier to emerging clean energy supply chains.
This places the nation in the rare position of being able to support current energy security needs and future decarbonisation pathways.
Beyond battery metals, Birol also highlighted uranium as a major opportunity, suggesting Australia can capitalise on its extensive reserves.
“Australia can be a major uranium supplier … make the most out of the uranium reserves you have,” he said.
As countries revisit nuclear energy to firm renewable-heavy grids, uranium supply is expected to become increasingly strategic, further strengthening Australia’s position across the energy value chain.
Birol’s broader message centred on the world entering what he described as the “age of electricity”, where demand is growing at twice the rate of overall energy consumption.
This surge is being driven by three key forces: electrification of transport, rising use of air conditioning, and the explosive growth of data centres supporting AI and digital infrastructure.
A single medium-sized data centre can consume as much electricity as a town of 100,000 households, underscoring the scale of future demand.
Meeting this demand will require massive investment in renewable generation, transmission networks and battery storage, all of which depend on the minerals Australia produces.
The convergence of electrification and AI presents Australia with a dual opportunity.
On one hand, it can supply the critical minerals required to build global energy and digital infrastructure. On the other, it has the potential to host energy-intensive industries such as data centres, provided it can deliver reliable, affordable and low-emissions electricity.
Australia’s strong solar and wind resources, combined with its growing battery deployment and reputation as a stable investment destination, make it an attractive option for such developments.
Birol said success in the AI race will depend not only on technological capability but also on access to abundant electricity, an area where resource-rich nations like Australia could gain a competitive edge.
His remarks reinforce a clear narrative: Australia’s mining and resource sector is central to the next phase of global economic and technological development.
As global systems electrify and AI infrastructure scales, Australia’s combination of mineral wealth, energy potential and regulatory stability could see it evolve from a traditional resources exporter into a fully-fledged energy and materials superpower.
For the mining sector, this represents an opportunity and a challenge – to scale production, invest in downstream capability, and maintain its reputation as a trusted supplier in an increasingly competitive global landscape.