National Battery Strategy to build Australia’s battery manufacturing industry

The National Battery Strategy details Australia’s plans and funding initiatives to grow its battery industry.

Australia’s first National Battery Strategy sets out how the country will build and sustain a thriving battery industry.

The strategy outlines how Australia can help diversify global battery supply chains by working collaboratively with key trading partners. It also describes how industry and government will work together to supercharge battery manufacturing.

Government funding to support the battery industry

The National Battery Strategy identifies 4 strategic opportunities:

• build stationary energy storage to transition Australia’s grid and the region to renewable energy
• upgrade Australia’s battery minerals into active materials for the global electric vehicle industry
• produce batteries for heavy vehicles and equipment Australia excels in manufacturing
• ensure safe and secure operations for batteries with enabling technology.

The Australian Government’s 2024–25 Budget included funding for battery innovation:

• A$523.2 million for the Battery Breakthrough Initiative, to promote the development of battery manufacturing capabilities through production incentives
• A$20.3 million for Building Future Battery Capabilities to incentivise cutting-edge battery research, including support for:
  • Future Battery Industries Cooperative Research Centre to map Australian battery capability and value chains and drive battery innovation
  • Powering Australia Industry Growth Centre to develop workforce skills and training.
• Support to deliver the Australian Made Battery Precinct (A$5.6 million), with Queensland to drive battery manufacturing in Australia.

The National Battery Strategy builds on a range of existing initiatives to grow Australian industry, including the Industry Growth Program, Solar Sunshot, the National Reconstruction Fund and the Critical Minerals Facility.

Battery projects and innovation in Australia

The global demand for batteries is set to quadruple by 2030 as the world transitions to net zero. Australia is well placed for battery manufacturing, thanks to:

• availability of battery minerals (e.g. lithium, nickel, copper and cobalt)
• strong environmental, social and governance standards
• reputation as a trusted trading partner with a low-risk and stable investment environment
• a history of pioneering battery and energy storage research.

International companies are investing in Australian battery expertise. US clean energy company First Mode worked with Australian experts to develop a battery for its suite of electrified haulage solutions for the mining and rail industry.

Australian battery technology companies are known for their cutting-edge products:

• Redflow’s zinc bromide batteries offer a safe, high-performing and long-lasting alternative to lithium-ion batteries.
• Thorion Energy has developed Australia’s first vanadium redox flow battery based on a chloride electrolyte.
• Magellan Power’s power conversion units – including inverters and batteries – turn energy from the sun or wind into power that’s readily usable.

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