Australia Introduces National Battery Strategy to Boost its Battery Supply Chain
With an investment exceeding half a billion dollars, the strategy aims to stimulate battery production domestically, positioning Australia as a significant player in both local and international markets for battery manufacturing.
May 27, 2024. By News Bureau
With an investment exceeding half a billion dollars, the strategy aims to stimulate battery production domestically, positioning Australia as a significant player in both local and international markets for battery manufacturing.
Aligned with the broader Future Made in Australia policy, the National Battery Strategy underscores the government's commitment to seizing economic opportunities amidst the global shift towards net zero emissions. Additionally, it seeks to cut over-reliance on China for critical supply chain components.
At the heart of the initiative lies a substantial financial commitment of USD 532 million, designated to catalyze battery production. This funding, announced in the recent budget, is slated to be disbursed over seven years and managed by the Australian Renewable Energy Agency (ARENA).
Dubbed as ‘Battery Breakthrough’, the scheme, however, is still in the formulation stage, despite funding slated to commence in the upcoming financial year. According to the strategy document, the government pledges to collaborate closely with industry stakeholders to conceptualize, develop, and implement the Battery Breakthrough program.
The National Battery Strategy targets key areas where the federal government perceives Australia to possess a competitive edge, notably in the transformation of raw minerals into essential components for the global electric vehicle supply chain. Additionally, the strategy prioritizes large-scale energy storage for grid stability, the production of batteries for industrial applications, and the establishment of technical and safety standards.
Industry and Science Minister, Ed Husic emphasized the potential for Australia to emerge as a ‘renewable energy superpower’ by transitioning away from a reliance on traditional resource extraction. He lamented the current scenario where Australia supplies a significant portion of the world's lithium yet contributes minimally to the production of processed battery components.
Furthermore, the strategy highlights the potential benefits for households as local battery production increases. Despite the prevalence of rooftop solar installations in Australia, only a fraction of homes have accompanying battery storage. The proposed funding under the National Battery Strategy aims to address this gap, enabling Australian manufacturers to meet the rising demand for stationary energy solutions and offering consumers a wider array of choices.
Without explicitly mentioning China, the strategy highlights the dominance of ‘one country’ in the global processing and manufacturing of batteries. Whether it's small vehicle-based batteries or large-scale industrial ones, the supply chains exhibit significant concentration, with over 75 percent of the supply originating from this singular source.
The strategy underscores the importance of nurturing sovereign capabilities in Australia where deemed necessary and efficient, aiming to enhance economic resilience and security. By fostering the battery industry domestically, the nation can ensure access to cutting-edge technologies while fortifying the economy against potential market disruptions, thereby safeguarding against adverse shocks.
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