To move Australia to the forefront of the global clean energy revolution, the Federal Government has unveiled the nation’s first National Battery Strategy. This strategic initiative aims to harness Australia’s natural resources and technological expertise to build a robust battery industry, vital for supporting a Future Made in Australia and enhancing economic resilience and security.
Global demand for batteries is expected to quadruple by 2030 due to the worldwide shift towards net-zero emissions, the National Battery Strategy outlines a comprehensive plan for Australia to capitalise on this surge.
The strategy identifies four high-value strategic opportunities to drive growth and innovation in the battery sector:
- Stationary Storage: Developing Energy Storage Systems (ESS) to support renewable power generation in the national grid and for use by communities, businesses, and homes.
- Battery Active Materials: Upgrading raw minerals into processed battery components to fortify global battery supply chains.
- Advanced Battery Technology: Utilizing Australia’s world-leading expertise to manufacture safer and more secure batteries integrated with the grid.
- Battery Manufacturing for Transport: Producing batteries for the transport industry, including heavy vehicle manufacturing.
Prime Minister Anthony Albanese emphasised the strategic importance of developing a domestic battery industry, stating,
“We want to make more things here, and with global demand for batteries set to quadruple by 2030, Australia must be a player in this field.”
He highlighted batteries as a critical component of Australia’s clean energy mix, alongside renewable energy, green hydrogen, and critical minerals, which are essential to meeting the nation’s emission reduction targets and fostering a robust clean energy manufacturing industry.
The federal budget has allocated substantial funding to support the National Battery Strategy:
- Battery Breakthrough Initiative: $523.2 million administered by the Australian Renewable Energy Agency (ARENA) to enhance battery manufacturing capabilities through targeted production incentives.
- Building Future Battery Capabilities: $20.3 million to promote cutting-edge battery research, including support for the Future Battery Industries Cooperative Research Centre and the Powering Australia Industry Growth Centre.
Additionally, the budget includes a $1.7 billion Future Made in Australia Innovation Fund, also administered by ARENA, aimed at accelerating the deployment of innovative technologies and facilities in priority sectors such as clean energy manufacturing.
Strategic Collaboration and Economic Diversification
Minister for Industry and Science Ed Husic underscored the potential economic benefits, noting, “Australia is a pioneer of battery tech, yet for too long we’ve sent our ideas offshore and lost the good jobs they create. The global clean energy transition is happening – and we’ve got a once-in-a-lifetime opportunity for Australia to create more well-paid, secure jobs.”
“A strong battery industry can supercharge our path to net zero and create a Future Made in Australia.
It’s inexcusable that we supply half the global supply of lithium but produce less than one per cent of the world’s processed battery components,”
Minister Husic added.
The National Battery Strategy outlines a collaborative framework for industry and government to work together to enhance battery manufacturing capabilities and transform Australia into a renewable energy superpower. This initiative builds on several existing government programs designed to support Australian businesses, including the Industry Growth Program, Solar Sunshot, the National Reconstruction Fund, and the Critical Minerals Facility.
The strategy leverages Australia’s natural advantages, such as abundant critical mineral resources and world-class battery technology expertise, to diversify global battery supply chains and strengthen economic resilience. By working closely with key trading partners, Australia aims to play a pivotal role in the global clean energy transition, ensuring the creation of well-paid, secure jobs and a sustainable economic future.
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