Australia's National Reconstruction Fund posts 7.7% return

Summarised from 2 outlets · Updated 27 Oct, 18:32 · Archive

Australia's $15 billion National Reconstruction Fund achieved a 7.7 per cent return in 2025/26, ahead of schedule, driven by profits from a lithium miner investment.

Australia's $15 billion National Reconstruction Fund, which provides loans to companies in strategic sectors including shipbuilding and artificial intelligence, achieved a 7.7 per cent return in 2025/26 in its second year of operation. The result significantly exceeded initial expectations. Chief executive David Gall said the fund had originally anticipated discussing rates of return five years after establishment but felt it important to bring that forward.

The strong performance was driven primarily by profits from the fund's investment in ASX-listed lithium company Liontown. The NRF invested $50 million in the Gina Rinehart-backed company at 73 cents a share as part of a $266 million institutional placement in August 2025. Liontown shares subsequently rode rising lithium prices and more than tripled in value by early 2026, prompting the fund to trim its holding and book a sizeable profit before the shares later slumped to around 69 cents.

Mr Gall said the fund had played an important role in helping Liontown recapitalise its balance sheet and attract additional private investment. The fund remains a shareholder. According to Mr Gall, for every dollar the NRF invested across its portfolio, it crowded in an additional $2.61 of private capital.

How it is being reported

• Solid first return for Labor's flagship investment fundThe National Reconstruction Fund booked a sizeable profit from its investment in lithium miner Liontown, helping it achieve a 7.7 per cent return in 2025/26.Perth Now · 27 Oct, 18:01
• Solid first return for Labor's flagship investment fundThe National Reconstruction Fund booked a sizeable profit from its investment in lithium miner Liontown, helping it achieve a 7.7 per cent return in 2025/26.The West Australian · 27 Oct, 18:01

In this story: National Reconstruction Fund · Liontown · David Gall · Gina Rinehart · Australia

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log