AusSuper sets sights on becoming a global force in critical minerals

Elouise FowlerReporter

May 20, 2024 – 5.00am

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AustralianSuper, the nation’s largest industry superannuation fund, will more than double its investments in lithium over the next three years to cash in on the energy transition and new trade routes forged by the US-China trade war.

The $315 billion AusSuper is also poised to deploy more capital in critical minerals over the next five years through investments in Australia, Africa, and North and South America, senior portfolio manager Luke Smith told The Australian Financial Review. It represents the largest bet on lithium alone by a pension fund investor.

Luke Smith, portfolio manager from AustralianSuper, expects the super fund’s investment in lithium to exceed $2 billion. Arsineh Houspian

“We have invested a bit over $1 billion in lithium,” Mr Smith said, referring to AusSuper’s 8 per cent stake in Pilbara Minerals by way of example.

“We anticipate our lithium holdings in the sector to grow over the next three years to north of $2 billion,” he predicted ahead of the Financial Review Mining Summit, to be held in Perth on Wednesday.

The comments are the first time AusSuper has publicly revealed the next phase of its critical minerals ambition. Its planned investment in lithium will take the fund’s portfolio of critical mineral investments to at least $14 billion over the next three years. Its current portfolio – which straddles copper, nickel and graphite and holdings such as BHP – is valued at $12 billion.

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