More than 1,000 Hunter jobs are secure, after the Albanese and the Minns Labor Governments have jointly contributed $2.5 billion to secure the future of aluminium smelting in the region.
The joint investment will deliver a long-term renewable energy solution for the Tomago Aluminium smelter that supports commercially sustainable operations beyond 2028 and accelerates decarbonisation of more than 10 per cent of NSW’s electricity grid, supporting and securing the future of one of the state’s most important industrial assets.
Tomago Aluminium has agreed to invest at least $1.1 billion in the facility as part of the deal. This includes $100 million to drive further decarbonisation activities at the smelter and undertake an innovative demand-response program to support the NSW grid. This demand-response program aims to position the Tomago smelter as the international leader in electricity demand response and flexibility services.
As part of the agreement, the NSW Government’s contribution is capped at $1.225 billion over 10 years from 2029, supporting the long-term future of Tomago and thousands of Hunter jobs.
As a result, Tomago Aluminium will continue operating beyond the expiry of its current electricity supply contract on 31 December 2028, providing certainty for workers, local businesses and the future of the Hunter region.
Tomago Aluminium is Australia's largest single electricity user. Securing a long-term renewable energy pathway for the smelter is critical to preserving nationally significant industrial capability and strengthens Australia's ability to supply the growing global market for low-emissions aluminium.
The joint investment will underpin nearly 3 gigawatts of new renewable generation and firming capacity, strengthening the state's electricity system and supporting long-term energy affordability and reliability for New South Wales.
Australia is one of only a handful of countries with an end-to-end aluminium supply chain, spanning bauxite mining, alumina refining, aluminium smelting through to advanced manufacturing.
As a major value-added export, aluminium supports jobs, investment and industrial capability while playing a critical role in clean energy technologies, advanced manufacturing and national infrastructure.
The arrangements also ensure revenue comes back to the federal government when aluminium prices are high. This means all Australians will benefit from maintaining domestic aluminium capability and sovereignty, with the added benefit of a monetary return on investment from our governments' contributions should aluminium prices rise.
This joint investment from the Albanese and Minns Labor Governments will secure 1,000 direct jobs at Tomago aluminium and 5,000 indirect jobs across the Hunter region, supporting a stronger and more resilient industrial future for New South Wales and Australia.
As at 13 August 2026
