Securing Raw Materials Program: Round 2

Purpose and Program Overview

The Securing Raw Materials Program: Round 2 is a strategic initiative designed to bolster Australia’s regional economic resilience by supporting the development of innovative, locally sourced raw material supplies. The program encourages businesses to relocate or expand their operations into regional Australia, fostering stronger ties between industry and regional research institutions. By capitalising on a region’s unique comparative advantages, the grant aims to secure the critical supply chains necessary for long-term business success.

A total funding pool of approximately $29 million was allocated for this round over four years. The program plays a broader role in the Australian Government’s Regional Decentralisation Agenda, which seeks to drive private sector investment, increase economic diversity, and create sustainable employment opportunities outside of major capital cities.

Key Grant Details

• Grant Amount: Between $250,000 and $5,000,000 per project.

• Application Period: Opened 6 January 2022 and closed 24 February 2022.

• Eligible Entities: Australian trading corporations (incorporated in Australia).

• Co-contribution: Required on a 50% matched funding basis (up to 50% of eligible project costs).

• Location Applicability: National (Australia), specifically targeting relocation or expansion into regional areas.

Priority Sectors

The grant is open to a broad range of sectors that rely on raw material supplies. However, the following exclusions apply:

• Projects in the minerals extraction and traditional energy production sectors are explicitly listed as ineligible for grant funding.

• Otherwise, the program is sector-agnostic, provided the project focuses on innovative research and development (R&D) of locally sourced raw materials.

Funding Scope

• Funding Range: $250,000 (minimum) to $5,000,000 (maximum).

• Project Scale: Eligible projects must have a minimum total expenditure of $500,000.

• Funding Streams: Support is focused on two core areas:

  • Research & Development: Partnering with regional universities or research organisations.

  • Capital/Operational Expansion: Establishing a new operation, branch, or outpost in a regional area.

• Timeline: Projects are generally expected to commence within specified windows following the execution of a grant agreement, with funding typically provided over a period of up to four years.

Eligibility Criteria

To be eligible for Round 2, applicants must:

• Have an Australian Business Number (ABN).

• Be an entity incorporated in Australia and a trading corporation.

• Commit to having at least 10 full-time equivalent (FTE) employees relocating or commencing work at the new regional site.

• Be relocating/expanding from a capital city to a regional area, OR expanding from one regional area to a different regional area.

• Provide a letter of support from a regional university or research organisation.

• Demonstrate the financial capacity to meet the 50% co-contribution requirement.

Eligible Activities and Expenses

The program supports a variety of activities related to the development and commercialisation of raw materials:

• R&D Activities: Research into new/improved raw materials, processing methods, or production technologies.

• Commercialisation: Activities focused on bringing research outcomes to market.

• Capital Expenditure: Establishing new facilities to process or add value to raw materials (within the first 12 months of the project).

• Labour Costs: Staffing costs directly related to the research and development components of the project.

Assessment Process

This is a competitive grant program. Applications are assessed against specific evaluation criteria, which typically include:

• Project Merit: The quality and innovation of the proposed R&D.

• Strategic Alignment: How well the project meets the program objectives of regional growth and supply chain security.

• Capability and Capacity: The applicant’s ability to deliver the project on time and within budget.

• Value for Money: The potential economic benefits for regional Australia relative to the grant amount requested.

Recent Program Updates

Round 2 featured a significant update to eligibility rules compared to the inaugural round. While Round 1 was restricted to businesses moving from capital cities to regions, Round 2 was broadened to include businesses already located in regional areas, provided they expanded into a different regional area to deliver the project.

Application Tips

• Verify Eligibility: Ensure your business meets the specific FTE employee requirements and geographic relocation criteria before applying.

• Formalise Partnerships: Secure a formal letter of support from a regional university or research institution early, as this is a mandatory requirement.

• Detailed Documentation: Prepare a robust project plan and budget that clearly demonstrates the feasibility of the 50% co-contribution.

• Alignment: Explicitly link your project outcomes to the government’s goals of regional economic resilience and job creation.

Where to Get Help

Consider consulting a grant specialist like Pattens Group for a personalised eligibility assessment and expert assistance in preparing a strong, compliant and competitive application. Contact us today and get connected with Australia’s best grant specialist, boasting over 35 years of experience in the industry and a 100% success rate. For official guidelines, application details, templates, and further information, visit the official website of the Securing Raw Materials Program and other associated Australian government websites.