To strengthen the resilience of battery supply chains and build critical battery manufacturing capabilities, the National Battery Strategy will target the following high-value opportunities for Australia:
Manufacture energy storage systems (ESS) for renewable grids
Australia will have a high demand for ESS across both utility scale (grid level) and smaller scale (community, business and household) installations. To meet this demand, Australia will need batteries with short, medium, and long-term duration. These needs are best served by different technologies and chemistries. Australia has deep experience with batteries that are optimised for our climate and for integration with our renewables grid. Australia is therefore well positioned to develop and commercialise energy storage and standalone power systems, which provide off-the-grid electricity for remote areas. This will help secure Australia’s energy transition and will position Australia to help countries in similar climates as they decarbonise, including southeast Asia and the Pacific.
Provide battery active materials to the world
Downstream mineral processing is a priority of the Critical Minerals Strategy. Industry revenue across the global lithium-ion value chain is projected to increase five-fold by 2030 (McKinsey 2023), with 96% of the total revenue opportunity expected to occur downstream of the mining stage (Accenture 2023). Australian battery active materials can integrate into the supply chains of automotive manufacturers. Cathode and anode active materials from Australia can qualify for Inflation Reduction Act electric vehicle (EV) subsidies if they are part of US automotive battery supply chains. This integration would diversify global supply chains with lower cost, higher standard and higher value products. This industry can also use recycled materials from Australia’s uptake of stationary storage batteries and EVs.
Provide batteries for our transport manufacturing industry
Australia has existing bus, truck, boat, mining equipment, defence and caravan manufacturing industries. Australian businesses are involved in automotive supply chains including EV conversions. As these industries continue to electrify and decarbonise, there will be gigawatts of demand for batteries. Local batteries are closer to ship, easier to adapt to meet local manufacturing needs and will help reduce supply chains vulnerable to disruption. Australian batteries will help our manufacturers adapt to the net zero future of transport.
Use Australian innovation to build safer, more secure batteries
Cybersecurity is crucial for battery installations, especially in sensitive environments like defence estates. Batteries need to work with management and control systems that meet the challenges of grid integration and safety. This includes grid-forming inverters to allow batteries to operate to their full potential in the grid. Australian businesses already have software and power electronics solutions that can comply with world leading battery standards. Australian design and innovation will help batteries work at their best and safest.