Major manufacturing and clean energy projects will be funded in the upcoming federal budget as Anthony Albanese flags a possible tightening of foreign investment rules. 

The prime minister unveiled the Future Made in Australia Act on Thursday, which would advance manufacturing and safeguard the nation’s control over its resources and critical minerals. 

The plan has been likened to the Inflation Reduction Act in the US. 

Mr Albanese said there would be new money in the May budget for the initiative. 

“You will see new programs, new funding and new opportunities working with business,” he told ABC’s 7.30 on Thursday night.

“One of the things that we have been doing is collaborating very closely with our scientists, with our researchers, with the opportunities which are there, but also with Australian-based businesses.”

Making the announcement earlier, Mr Albanese said the policy aimed to secure “greater sovereignty over our resources and critical minerals”.

Asked if the government was considering strengthening foreign investment rules, Mr Albanese said Labor was prepared to.

“If it’s not working, we will always look for national sovereignty (sic),” he said.

“We welcome, of course, support foreign investment here in Australia.

“It will play an important role in this transition.”

Asked if Australia would implement Canadian-style restrictions on critical minerals, Mr Albanese said the government wanted to make sure the nation was not just exporting the raw materials.

“There’s been investment in extraction but not investment in value-adding, creating jobs,” he said.

“Because that’s how you create jobs and that’s how you also protect our national sovereignty – by making sure that we remain a country that makes things here.”

Critical minerals are needed for the clean energy transition and are used for electric vehicles and other technology.

The government’s plan has been welcomed by business groups that urge careful consideration for investment.

This post was originally published on Michael West.