The Morrison government is aiming to help businesses turn minerals from the Hunter Valley, Western Australia and central Queensland into products such as batteries, solar cells and mine safety equipment.
Prime Minister Scott Morrison will on Thursday announce a new 10-year plan to boost resources technology and critical minerals processing.
Australia has the world's largest resources of rutile (titanium), zircon (zirconium) and tantalum and is ranked in the top five nations for antimony, cobalt, lithium, manganese ore, niobium, tungsten and vanadium.
Businesses will be able to apply for funding from the $1.3 billion Modern Manufacturing Initiative for proposals such as scaling up production or commercialising products to tap into global supply chains.
"Yesterday's national accounts showed the comeback of the Australian economy is well under way and manufacturing businesses and jobs will be central to our national economic recovery plan," Mr Morrison said.
"Our Modern Manufacturing Initiative will help position Australia as not just a global leader in the resources sector but also in the manufacturing of the technology used, as well as turning the raw materials into value-added products."
He said it would be particularly beneficial for jobs in resource-rich regions such as the Hunter, WA and central Queensland.
Industry Minister Karen Andrews said the funding could back businesses wanting to turn critical minerals into products such as batteries and solar cells, as well as mining equipment.
The government also soon plans to release similar roadmaps to drive investment in the food and beverage industries, recycling, clean energy and defence.
Australian Associated Press