As we begin 2026, the focus shifts to the “body.” Advanced guidance and radar systems, robotic actuators and optical components all require one thing: the physical materials that make them possible. This makes Rare Earth Elements (REEs) and Critical Minerals a defining business opportunity for the Territory.

We are witnessing a structural shift, a shift from simply digging materials out of the ground to reimagining how we find them, process them and finance them. The Territory isn’t just exporting commodities anymore. We’re building the infrastructure and expertise that Western economies depend on for their economic security.

The Strategic Shift

The geopolitical landscape has brought critical minerals into sharper focus. When the US-Australia Critical Minerals Framework was signed in October 2025, it was a watershed moment. Secure mineral supply chains are no longer just about trade, they are now a matter of national security. This framework places the NT at the fulcrum of the alliance, unlocking billions in financing and guaranteeing offtake for materials processed in the Top End.

Innovation in Exploration

For some critical minerals we face a supply problem due to limited exploration activity over the past decade. Mining already contributes 27% of the NT’s Gross State Product yet around 80% of the Territory’s vast landmass remains underexplored for minerals, presenting significant greenfield opportunities.

The challenge has always been risk. Early-stage exploration is expensive and uncertain. The Territory is addressing this through smarter approaches. The Geophysics and Drilling Collaborations (GDC) program, managed by the Northern Territory Geological Survey (NTGS), co-funds exploration in these greenfield areas. By making pre-competitive data (shared geological survey information) freely available, it reduces the risk for companies willing to venture into new territory.

But the real innovation is in how we explore. New technologies are making exploration faster, more precise and less invasive. Instead of drilling hundreds of expensive holes hoping to strike minerals, companies can now use advanced sensors and data analytics to pinpoint exactly where deposits lie. This means less environmental disturbance, lower costs and faster results. Territory companies like Esper and Atomionics are developing these breakthrough technologies, turning exploration from a blunt instrument into a precision tool.

Mine and Refine

Finding minerals is only the beginning. The real economic value, the jobs, the expertise, the investment, comes from processing them here rather than shipping raw materials overseas.

Take the Nolans Project as an example. Rather than extracting rare earths and sending them abroad for processing, Arafura is building the facility to separate them on-site into materials like NdPr oxide, neodymium-praseodymium oxide, the critical component in the powerful permanent magnets that drive electric vehicles, wind turbines and advanced robotics. This “mine and refine” model means the value stays in the Territory, in local jobs, local expertise and local economic growth. It’s exactly the kind of sovereign capability (local control of strategically critical supply chains) that the National Reconstruction Fund (NRF) was designed to support.

Government backing is transforming the capital stack. The NRF’s cornerstone investments crowd in private capital, signalling to firms that these projects are viable and strategic. This model is gaining momentum across the Territory. Tivan is planning a vanadium oxide processing facility at Middle Arm using feedstock from Mount Peake. Avenira is developing a Lithium-Ferro-Phosphate cathode manufacturing facility using phosphate from the Wonarah Project. The pattern is clear: extract locally, process locally, supply globally.

What’s making this possible is a transformation in how these projects are financed. The NRF’s cornerstone investments are crowding in private capital, attracting commercial investors by signalling that these projects are viable and strategic. Government backing isn’t replacing the private sector; it’s proving that these ventures can deliver both strategic value and commercial returns, unlocking investment that wouldn’t otherwise flow.

The Opportunity Ahead

As we move through 2026, demand for rare earths is forecast to exceed supply. The Remote North is no longer remote to the global economy, it’s central to it.

The Territory’s advantage isn’t just what’s under our ground. It’s our willingness to innovate at every stage: smarter exploration technologies that find deposits faster and with less impact, local processing infrastructure that captures the full economic value, and financial models that prove critical minerals can be both strategically essential and commercially sound.

By combining our natural resources with genuine innovation, the Territory is positioning itself not just as a supplier but as an essential partner in building a high-tech, secure future. Through supporting innovation ecosystems like the Darwin Innovation Hub and backing breakthrough technologies, we’re ensuring that the Territory doesn’t just dig deep, it builds smart. TQ

Paspalis invests in innovative companies, underscoring its commitment to driving economic growth and technological advancement in the Northern Territory.