Australia’s revenue potential from building a battery industry has doubled to A$16.9 billion in the last 18 months, emphasising the sector’s rapid growth and the need of taking action, according to a report backed by government and battery industry research group Future Battery Industries.
In a speech to the National Press Club, Minister for Industry and Science Ed Husic cited a report that claims the battery industry could sustain 61,400 local employment and generate $16.9 billion in value-added annually by 2030.
The report, titled “Charging Ahead – Australia’s Battery Powered Future,” examined the effects of geopolitics and the wider world on Australia’s potential to build its battery businesses and become a significant supplier of battery minerals.
Its proposals, if put into practice and supported by the $1 billion value add-in resources sub-fund and the $15 billion National Reconstruction Fund, could make Australia’s battery industry a global leader, FBICRC said.
According to the report, Australia should shift its export priorities to target countries looking to diversify their supply chains in the currently Chinese-dominated battery business.
Findings in the report suggest that Australia should rapidly pursue significant policy initiatives to entice international industry investment.
Australia should also pursue partnerships with geopolitical allies in order to capitalise on the opportunities at hand, the report added.
“In light of recent geopolitical developments, our report has shown Australian policy-makers should explore more aggressive industry policies, target markets that are looking to diversify their supply chains, and partner with geopolitical allies to enable and enhance the potential growth of Australia’s battery industry,” remarked FBICRC CEO Shannon O’Rourke.
O’Rourke added that developing and expanding Australia’s manufacturing environment is a problem, and that the National Reconstruction Fund and other initiatives are crucial for enabling Australian businesses to compete globally.
Shaun Chau, the author of the report and sustainability services managing director at Accenture in Australia, pointed out that Australia has a significant chance to increase its involvement in the battery supply chain.
“To capitalise, Australian industry, government and universities need to move decisively and quickly to create the right enabling environment, attract and develop the appropriate capabilities and ready a coordinated industry for action,” Chau noted.
FBICRC’s report can be found on the FBICRC website.
