Unlocking Asia-Pacific as a First Mover 2025

Potential green iron hubs and their characteristics TABLE 2 Sour ce: The Superpower Institute, 2025.116 Notes: 1. Each location has a “capital cost multiplier” to captur e local building and operating costs. 2. “Inflexible” technology r equir es a continuous supply of gr een hydr ogen or natural gas to r educe or e to ir on. “Flexible” technology can ramp pr oduction up and down, accor ding to variable sour ces of energy . Geraldton (Wester n Australia)Central W A DR- grade magnetite— Pelletization of or e for inflexible technologyYES 1.24Pilbara (Wester n Australia)Pilbara lower -grade hematite— Pelletization of or e for inflexible technology — DRI pr ocessed in electric smelting furnace for both flexible and inflexible technologiesNO 1.34 Kwinana (Wester n Australia)Pilbara lower -grade hematite— Pelletization of or e for inflexible technology — DRI pr ocessed in electric smelting furnace for both flexible and inflexible technologiesYES 1.12 Gladstone (Queensland)Pilbara lower -grade hematite— Pelletization of or e for inflexible technology — DRI pr ocessed in electric smelting furnace for both flexible and inflexible technologiesYES 1.11LocationConnected to wholesale electricity marketCapital cost multiplier1 Type of ir on or e Processing2 Eyre Peninsula (South Australia)Eyre Peninsula DR- grade magnetite— Pelletization of or e for inflexible technologyYES 1.08 Eyre Peninsula and the Whyalla Steelworks, South Australia SA’s Eyre Peninsula emerged as a frontrunner in TSI’s analysis, with potential to produce the cheapest green iron in Australia at ~AU$668 per tonne (green HBI, flexible) without policy support, (see Figure 5). The state has numerous natural advantages. Its Middleback Ranges conceal 19 billion tonnes of magnetite reserves, including 7.9 billion tonnes economically demonstrated. Its wind and solar energy are on track to deliver 100% renewable electricity by 2027. The concentration around SA’s Upper Spencer Gulf of abundant magnetite deposits and renewables – combined with deep water ports, established industrial pit-to-port infrastructure and a skilled workforce – means the region can potentially support 1-3 Mtpa of green iron production by 2030, with the right policy settings. SA hosts Whyalla Steelworks, which produces the majority of Australia’s structural steel. Currently in administration, Whyalla’s recent AU$2.4 billion transition package – backed by both federal and state governments – includes converting the plant from its existing coking coal-powered blast furnaces to a hydrogen-ready DRI/EAF facility by 2030, with a planned capacity of around 1.8 Mtpa. However, uncertainty persists. In May 2025, the state shelved its ~AU$600 million green hydrogen power project plan and dissolved the body charged with managing it.117 In June, the government formally put the steelworks up for sale; so its strategic direction and green future will depend on the new owner.118 Pilbara, Western Australia As discussed in Chapter 2.1, Pilbara is Australia’s iron ore heartland. Two-thirds of the country’s hematite is found there and a combination of operational scale, simple processing and efficient transport infrastructure make Pilbara’s iron ore exports among the lowest-cost in the world. A record 730 Mt of iron ore were exported from Pilbara’s ports in 2024-25, accounting for 81% of the national trade and 43% of the global trade.119 Pilbara’s challenge is to adapt to the demands of low-carbon production, which requires direct reduced iron that avoids fossil-powered blast furnaces. It either needs to invest in beneficiation and electric smelting of its ubiquitous hematite, or it must significantly ramp up mining of DRI-grade magnetite ore. Unlocking Asia-Pacific as a First Mover: Australia’s Green Iron Opportunity 40