The Australian government has initiated legal action against the US company 3M over contamination from firefighting foam containing PFAS, the so-called "forever chemicals", and is seeking more than A$2 billion (roughly US$1.43 billion) in damages. According to the government, this is the largest legal claim ever brought by the Commonwealth of Australia against a single company and is intended to cover past and future environmental, economic and cultural costs associated with contamination at military bases.
The claim is against 3M and its Australian subsidiary over the use of foam at 28 defence bases around the country. The government alleges that the company assured for years that the substance was safe, biodegradable and non-toxic, even though it had internal tests showing significant negative environmental impacts. 3M denies the allegations and has announced it will defend itself in court.
Australian government's biggest legal action
The lawsuit has been filed in the Federal Court and, according to Justice Minister Michelle Rowland, represents "the most significant legal action ever taken by the Commonwealth and the Department of Defence". The government is seeking more than AUD2 billion in compensation for "significant past and future costs" associated with the investigation and management of the PFAS contamination.
According to Deputy Defence Minister Peter Khalil, 28 defence bases across Australia were affected. The lawsuit seeks to shift the financial burden of cleanup from taxpayers to chemical manufacturers. Rowland stressed that the government was "acting on behalf of the Australian people and the communities affected by PFAS" and described the case as a crucial precedent for holding big industry players to account.
As the government describes 3M's misconduct
The Australian government alleges that 3M supplied firefighting foam with PFAS and provided assurances that it was safe to use and dispose of, despite having internal testing and information about serious environmental risks. According to the company's court filing:
presented the foam as biodegradable and non-toxic
withheld the results of its own tests, which showed significant negative impacts on ecosystems
failed to inform the government about the long-term persistence of PFAS in the environment
3M $MMM said in a statement that it intends to vigorously defend itself against the allegations. The company stressed that it has never produced PFAS in Australia and stopped selling the affected foams in the country about 20 years ago. In addition, according to 3M, the Australian Department of Defence continued to use PFAS foams for almost another twenty years after sales ceased, which the company says undermines the manufacturer's direct liability.
What are PFAS and why are they a problem
PFASs (per- and polyfluoroalkyl substances) are a group of several thousand synthetic chemicals used in products that resist water, grease, dirt and heat - from firefighting foams to non-stick surfaces to textiles and food packaging. The nickname "forever chemicals" was coined because they are virtually undegradable in nature and can accumulate in soil, water, food chains and the human body.
Research has long linked PFAS exposure to a number of health risks, including liver damage, reduced birth weight, immune disorders and certain cancers such as testicular cancer. It is the link to contamination of drinking water and groundwater sources that has led to a series of lawsuits against the manufacturers of these substances in many countries. In 2023, 3M agreed to a major settlement in the U.S. - pledging to pay $10.3 billion over 13 years to public water systems to test and remove PFAS from drinking water.
How much Australia has already spent on remediation
According to Peter Khalil, the Australian Department of Defence has spent about AUD 1.3 billion so far to address the impacts of PFAS contamination. Of that:
Approximately AUD 408 million has gone towards legal settlements with affected communities around the bases
more than 200,000 tonnes of contaminated land has been removed or treated
more than 13 billion litres of water has been treated or purified to reduce PFAS concentrations
According to the government, these figures show that this is not just a historical problem, but a long-term financial and health commitment that will require billions more in spending. The lawsuit seeks to shift these costs, at least in part, to the manufacturers of the chemicals that caused the contamination.
3M and the global wave of PFAS lawsuits
The Australian case is the latest chapter in a long line of litigation surrounding PFAS. 3M faces thousands of lawsuits around the world from municipalities, states, water companies and individuals who claim their water, land or health has been harmed by "perpetual chemicals."
In the U.S., the company agreed to a $10.3 billion settlement with public water systems in 2023 over drinking water contamination
The settlement is to cover the cost of testing and cleaning up PFAS and covers most US water systems, with 3M pleading not guilty
3M also announced a plan to end PFAS production by the end of 2025, precisely because of regulatory pressure and growing legal risks
The Australian lawsuit is not only a financial risk for the company, but also a reputational risk - it is the largest claim to date by a single government outside the US, and may inspire similar actions by other countries addressing contamination at military and industrial sites.
What's next: a long legal battle and pressure for accountability
Government officials, led by Michelle Rowland and Peter Khalil, have stressed that the legal action against 3M is "the most significant legal action in history" and that Australia is "holding 3M to account on behalf of residents and communities affected by PFAS". The case is likely to take years to resolve and 3M can be expected to defend itself not only with the argument about the post-sale period of the foams, but also the state's shared responsibility.
But in terms of precedent: if Australia succeeds - or reaches a large settlement - it could reinforce the trend of states and public institutions actively recovering clean-up costs from chemical manufacturers, even decades after use. For 3M investors, this means PFAS will remain one of the company's top legal and financial risks well into the next decade.