Federal government announces $523 million strategy for Australia to become major battery construction hub

By Colin Hay - May 24, 2024

The Federal government has unveiled the nation’s first “National Battery Strategy” as part of its “Future Made in Australia” plans.

Prime Minister Anthony Albanese said global demand for batteries is set to quadruple by 2030 as the world transitions to net zero and the government’s strategy maps a path for Australia to take advantage of this growth to build a thriving battery industry.

Australia is already a major supplier to the world of the key critical mineral elements used to create batteries for electric vehicles and massive battery storage systems.

Budget support

The recently released federal budget included significant new funding to support the development of a local battery industry.

This included $523.2 million to promote the development of battery manufacturing capabilities through production incentives targeted at the highest value opportunities in the supply chain and $20.3m to incentivise cutting-edge battery research.

Mr Albanese says Australia has a number of high-value strategic opportunities to create value through an expanded battery manufacturing sector including building energy storage systems for renewable power generation in the national grid and for communities, businesses and homes.

He said the new battery strategy is designed to harness Australia’s world-leading expertise in battery technology and lean into the nation’s natural advantage with critical minerals.

“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,” the PM said.

“Batteries are a critical ingredient in Australia’s clean energy mix.”

“Together with renewable energy, green hydrogen, and critical minerals, we will meet Australia’s emission reduction targets and create a strong clean energy manufacturing industry.”