Hello. My name is Justin Hayhurst, Australia's Ambassador to Japan. And I want to thank you for the opportunity to participate in today's symposium. I want to acknowledge any guests we have in the room from the West Australian Government. I want to pay respect to my hard-working counterpart, Ambassador Suzuki, and I want to commend Gordon Flake and all the staff at the Perth USAsia Centre for their hard work on this event.
Video messages like this are always a little bit at the risk of events, especially in a fast moving time, such as we're experiencing this year. So I won't comment on major global events that occur now, because there could be many changes between me filming and you watching.
What I can say with confidence is Australia and Japan are navigating together this time of uncertainty. The uncertainty is stark. We're seeing changes around the world following major elections in 2024. Early policy decisions by the new US Administration have reopened debates in many countries about trade relationships, tariffs, and defence budgets. Strategically, relative power positions are shifting. At the same time, technology is throwing up new opportunities and challenges in societies, seen especially through recent debates on AI and quantum. And there are many other sources of uncertainty in the world, including the impact of climate change.
While that uncertainty is there, it's also a time of convergence, which is perhaps more of a surprise. The uncertainty, in fact, is bringing Japan and Australia closer together. It's my belief that, for Australia and Japan, our interests align more now than they ever have.
Today's symposium is focused on partnering in advanced manufacturing. This is an obvious area of opportunity for Australia and Japan to leverage that convergence, to navigate uncertainty and to advance our interests. In each of the target sectors of today's symposium: defence industry, supply chains and critical minerals, and the energy transition, Australia and Japan enjoy growing policy alignment and strong economic complementarity.
First, in defence industry, our cooperation is expanding at a rapid pace. We are Special Strategic Partners with a shared vision for the region. Defence uplift is a priority for both of us. In Australia, 2024's budget increased defence funding to $765 billion over the decade. And Japan is also investing heavily with a record allocation for defence spending in this year's budget.
Working together and trilaterally with the United States, we can combine our respective defence industrial capabilities to maximum effect. The challenge and the opportunity is moving beyond alignment to achieve integration through our defence industries. And we're starting to do this. For example, the Defence Science and Technology Group has partnered with Japan’s Mitsubishi Electric Corporation to develop a cutting-edge laser capability to protect military assets and personnel. This is a project combining Australian technology with Japanese industrial scale and commercialization capability.
Japan is also consulting with AUKUS partners to determine projects for future cooperation under AUKUS Pillar II. This will be another opportunity for industrial integration.
Working together like this in the defence industry is a highly complex task with big challenges, including on information security. But both countries are committed to progress, and I think the requirements of the uncertainty we face together will force cooperation long into the future
On supply chains and critical minerals, these are at the heart of our economic security cooperation with Japan. Australia's critical mineral reserves, as you know, are among the best in the world. Japan is well aware that three of the most important battery minerals are lithium, nickel and cobalt. Well, in Australia, our reserves [for these minerals] rank second in the world. With Japan, we have a shared interest also in diversifying supply chains to build economic resilience.
It's not an easy task, but Australia and Japan have not just admired the problem, we've done something about it. Our collaboration on the Lynas Rare Earths project from 2011 is a major achievement in that respect. And today, as you know, we are building on this with major joint projects, several of them in Western Australia, for example, the Kalgoorlie Nickel Project, and an additional $200 million of equity investment into Lynas’s Mount Weld rare earths, which could provide up to 30% of Japan's demand.
I also wanted to talk about the energy transition. An area of convergence and opportunity, as well as complexity for Australia and Japan. Our two countries have similar emissions reduction goals. We're both committed to net zero by 2050, and our 2030 goals are broadly comparable.
But neither of us can achieve our climate, clean energy and energy security ambitions alone. The Australian Government understands Japan's energy security dilemma and is committed to being a trusted partner throughout the energy transition.
Japan needs our energy imports, including natural gas and, over time, zero emission alternatives like hydrogen, ammonia and LNG with CCS. And in Australia, we know that we need Japan's equity, its offtake and its technology to develop our huge energy resources, both traditional and renewable, and not just for export, but probably to help power Australia's own economy. So we strongly welcome continued Japanese investment across the energy sector, including in Australian LNG, in projects such as Scarborough.
And we want to work with Japan on delivering the promise of green energy exports, where green energy is embodied in goods like green iron or aluminium. Across the three sectors you are discussing today – defence, supply chains and energy - both governments are designing policies and allocating funding to deliver our objectives.
Much of this will be familiar to you. The Australian Government's Future Made in Australia agenda has a focus on advanced manufacturing and is investing at least $22.7 billion over ten years. Signature initiatives of that policy include critical minerals production tax incentives, green aluminium production credits, and significant allocations to map Australia's resource endowments.
Here in Japan, we see similar themes and a corresponding level of ambition in its policy agenda for GX (green transition), DX (digital transformation) and through Japan's ambitious Economic Security Promotion Act.
In an era where closer alignment is required between government and industries, Australia has plenty to learn from Japan.
To bring these remarks to a conclusion, I want to say yes, we live in a period of great uncertainty, but it's also forcing us to look at the fundamentals. What makes a country strong? What makes a partnership strong? And even though, like all partnerships, we all come under some pressure at this time, strong partnerships like ours will thrive under that pressure.
The depth of our alignment and complementarity will continue to draw Japan and Australia together. Our job, your job, is to seize those opportunities and deliver outcomes for our countries.
Just before concluding, I want to mention two important events this year and encourage you to participate. The first is the Osaka Kansai Expo, which starts on the 13th of April.
The Australian Pavilion will be an impressive platform for high-level engagement between Australia and Japan, and we will be hosting a major critical minerals event on the 26th of September and in net zero event on the 23rd of September bringing together key stakeholders from both countries.
The second event I want to mention has a strong Perth connection and that is the next Australia Japan Joint Business Conference in Perth from 5 to 7 October. The chair on the Japanese side, Chairman Hirose Michiaki, is assembling a very senior and broad delegation of Japanese businesspeople to attend. It's a very big opportunity for Australians to connect and to grow our partnership.
I look forward to seeing many of you in person, both in Osaka and in Perth later this year.
Thank you.