The global demand for batteries is set to quadruple by 2030 as the world transitions to net zero. Australia is already a leading producer of battery minerals, providing approximately 45% of the world’s lithium in 2023. While we mine critical minerals here, we currently make less than 1% of global battery materials or components.
The global energy transition to renewables presents a significant opportunity for Australia to expand our economy, industry and manufacturing capabilities thanks to our home-grown advantages: our resources and our people. The security and resilience of battery supply chains is also critical to Australia’s ability to become a renewable energy superpower, and to its energy security. However, battery supply chains are currently among the most concentrated in the world, compromising Australia’s economic resilience.
The National Battery Strategy builds on Australia’s existing strengths and provides a pathway to move up the battery value chain and capitalise on key opportunities – such as manufacturing stationary energy storage systems and higher value battery active materials, building battery safety and security, and continuing to develop emerging battery chemistries. This will allow Australia to capture a once in a generation opportunity presented by a thriving domestic battery industry.
Last year about 3.7 million Australian homes used rooftop solar to lower their electricity bills – but only about 250,000 of these homes had a battery. By strengthening the resilience of Australia’s battery supply chains and strengthening critical battery manufacturing capabilities, Australian manufacturers can meet the growing demand for stationary energy, provide more choice to consumers, support more people to harness cheap renewable energy and contribute to more diverse and resilient global supply chains.
Australia has unmatched natural advantages to create a battery industry. These include world-leading renewable energy resources, critical minerals, skilled workers and a strong international trading reputation. If we mine it here, we should make it here. By leveraging these advantages with the targeted measures announced in our 2024–25 Budget, the strategy will support a future made in Australia and play a role in achieving our net zero goals.
The strategy is the latest milestone in Australia’s impressive history in battery advancement. Australia has been at the forefront of the battery industry for decades, from pioneering the vanadium redox battery at the University of New South Wales to installing the world’s first big lithium battery in South Australia. Across Australia, businesses continue to innovate in the battery industry.
The strategy is at the forefront of global change towards economic resilience, setting Australia on a path that aligns strongly with our national interests. The National Interest Framework under the forthcoming Future Made in Australia Act will outline how government will support priority industries, including clean energy manufacturing such as batteries, into the future. Australia is moving beyond a ‘hope for the best’ approach for economic security, to one that capitalises on our advantages, makes Australia an indispensable part of global supply chains and creates the secure jobs of the future.
The strategy sets out the government’s measures to create a diverse and competitive Australian battery industry, headlined by new actions:
- $523.2 million Battery Breakthrough to transform our battery industry by helping manufacturers to move up the battery value chain in Australia. This will:
- provide a targeted production incentive to support Australian battery manufacturers to build capabilities that are critical to our economic resilience
- be paid on production, and will focus on producing high-value battery products that align with Australia’s areas of advantage and that support the climate energy transition.
- $20.3 million Building Future Battery Capabilities measure to build our future battery capabilities and strengthen national collaboration. This includes funding to deliver a supply chain navigator tool, battery innovation and scale-up program, best practice guidelines and standards, and provide battery industry skills and training.
- $1.7 billion for the Future Made in Australia Innovation Fund to support innovation, commercialisation, pilot and demonstration projects and early-stage development in priority sectors – including manufacturing clean energy technologies such as batteries.
Together the measures in the strategy will give Australia access to cheaper and cleaner energy, capture more value from our natural resources, boost long‑term productivity and create well-paying jobs.