“The scheme aims to bolster the country’s alumina, aluminium, iron and steel sectors, which account for more than A$150 billion a year in overseas shipments,” officials said in a statement.

The funding is part of a broader “Future Made in Australia” industrial policy announced in last year’s budget.

“It will help develop new technologies and finance pilot projects to lower emissions, improve productivity and “revitalise” plant and equipment,” officials said.

The announcement came days after US President Donald Trump said he would not exempt close ally Australia from looming steel and aluminium tariffs.

Prime Minister Anthony Albanese said the government aimed to strengthen the Australian metals manufacturing industry, and described the US tariffs as an “act of economic self-harm”.

“We have been very clear that we do not regard this as the act of a friend,” Albanese told a news conference in Perth.

“When the US imposed tariffs during Trump’s first time in office, it carved out dozens of exemptions including for Australia,” he said.

This time, the US administration “for ideological reasons” had declined to make any.

“Canberra will continue to argue that the US has long enjoyed a surplus in its trade with Australia and benefits from good economic relations,” he said.

“We do not impose tariffs on US goods into Australia, and we expect the same,” he added.