(Bloomberg) -- Australia will introduce a new green aluminum production credit to assist aluminum smelters to switch to renewable electricity by 2036, the latest move by the center-left Labor government to bolster investment in domestic manufacturing.

Prime Minister Anthony Albanese announced the outlay on Monday, saying it would cost about A$2 billion ($1.2 billion) over 10 years. Once producers make the switch to green energy,  they will become eligible for the government support. 

In a statement, Albanese said that Australian-made aluminum was a “massive opportunity” for the country. “We’ve got the resources, the workers, and the know-how – the only thing we don’t have is time to waste.” 

The announcement comes as part of the government’s Future Made in Australia program, which taps into a global trend toward strengthening domestic manufacturing to shore up supply chains following the Covid-19 pandemic.

Under the policy, the government has already pledged A$22.7 billion in tax incentives for the production of renewable hydrogen and critical minerals that are due to be begin in fiscal 2028. Albanese has made the Future Made in Australia plan a centerpiece of his pitch for reelection at a vote due to be held by May 17. In contrast, the center-right opposition is likely to roll back the program if it wins power.

Australia is the world’s sixth-largest producer of aluminum, according to the Australian Aluminium Council, with four smelters operating in the country — two owned by Rio Tinto PLC, one by Alcoa and one by CSR and Hydro Aluminium. 

In a statement after the government’s announcement, Rio Tinto welcomed the support for the sector, saying it would “help sustain and grow aluminium smelting” across the country.

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