The Federal Government has released a strategy which outlines how Australia can use its natural and industrial advantages to develop a leading domestic battery manufacturing industry.
This includes making more batteries in areas that best suit Australia’s advantages. The focus is on energy storage systems, battery active materials, manufacturing industry inputs and safe and secure batteries.
Battery storage is an important part of cheaper and more secure energy supply. Batteries can help:
- Store renewable electricity
- Stabilise the electricity grid and market
- Power Australian industries
- Lower emissions and help achieve net zero by 2050
The strategy outlines the strategic battery priorities to achieve this:
- Build battery manufacturing capabilities in ways that strengthen economic resilience, leverage Australia’s comparative advantages and add value to the nation’s economy
- Build knowledge and skills to create secure Australian-made jobs
- Secure Australia’s place in global battery supply chains
- Lead the world on sustainability, standards and the circular economy
- Bring all levels of government together
The Department of Industry, Science and Resources said that it consulted broadly to develop the strategy and its actions, and that it will continue to work with industry, government, business and experts to apply it.
The strategy expands on recommendations from the Critical Minerals Strategy and National Electric Vehicle Strategy. It provides a national framework to capitalise on Australia’s strengths in critical minerals by adding greater value onshore. This includes diversifying global supply chains of critical minerals used in priority renewable technologies, including batteries and battery components.
New measures in the 2024–25 Budget headline the strategy. These are expected to create a diverse and competitive Australian battery industry and include:
- Battery Breakthrough ($523.2 million) to promote the development of battery manufacturing capabilities through production incentives targeted at the highest value opportunities in the supply chain. The Australian Renewable Energy Agency will administer the initiative
- Building Future Battery Capabilities ($20.3 million) to enhance industry and research collaboration, including workforce training for battery research, manufacturing, transport and recycling
- Support to deliver the Australian Made Battery Precinct ($5.6 million) with Queensland to drive battery manufacturing in Australia
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