Australia’s raw mineral wealth makes the country a great contender in the battery supply chain amid global competition. Becoming a leader in the battery supply chain will make a significant impact on the country’s economy.
A study by Accenture estimates that the growth in battery demand has increased by 64 per cent in the last two years, and it will continue to accelerate until the end of the decade.
The role of electric vehicles
According to the study, increased EV adoption is a major driver behind the growth. The minerals from the country are used in most of the world’s new electric vehicles. Thus, this has opened a conversation amongst key government positions to ignite Australia’s car manufacturing industry again last month.
It was last year when the idea of restarting the Australian auto-manufacturing industry was proposed in a report that came from the Australia Institute in February 2022.
During Anthony Albanese’s victory speech in May, he declared that Australia could be a renewable energy superpower. By September, Tesla chair Robyn Denholm backed the idea publicly and said that the country “can and should” manufacture EVs due to the abundant supply of battery metals.
Energy Minister Chris Bowen also backed the idea and said, “We can make electric vehicles in Australia. Not only do I think that, so do the EV manufacturers.”
Currently, the country’s role in the EV manufacturing industry is to mine huge quantities of lithium and send it to different parts of the world where all the great things are happening regarding electric vehicles.
However, despite the large lithium reserves in Australia, it’s still a challenge for the nation to manufacture EVs due to the bottleneck of local lithium processing.
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Building EVs on a small scale
Despite the issues Australia faces in fully tapping into the EV manufacturing industry, the country is already building EVs on a small scale. This demonstrates that the country has the technical ability to manufacture EVs. Shannon O’Rourke of Future Battery Industries CRC states, “We are closer than most people think to having an end-to-end value chain in Australia.”
She continued, “What we don’t have is global scale, and we need scale to be cost-competitive. If you’re not a big player, then it is hard to afford the research and development to maintain pace with global leaders.”
The time to act is now
An excerpt from the study states, “Given the accelerated pace with which battery industries are developing and consolidating, Australian governments will need to act quickly to support battery industries to capture shares in high-value market segments.”
Five strategic priorities are recommended by the Charging Ahead study:
- Alliances
- Attract large anchor tenants to the country
- Government coordination through policies and strategies
- Regional export partnership with neighbouring countries
- Increased collaboration between industry and academia
O’Rourke said, “In light of recent geopolitical developments, our report has shown Australian policymakers should explore more aggressively industry policies, target markers 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.”
The country is uniquely positioned to take a leading role in the battery industry and needs a more ambitious approach to get it done.
Federal Industry Minister Ed Husic said at the National Press Club, “There’s a window of opportunity to become a key player in the battery manufacturing and the battery value chain, and then export that on to the world stage.”
He also said, “We can’t let that window close on us. We are recognised as possessing some of the greatest stores of critical minerals and rare earths on the planet, and that’s why I’ve said if we mine it we, we should make it here. And we have the know-how and attitude to do so.”
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How it will impact Aussies
Australia’s plan to grow its role in the global battery supply chain is expected to significantly impact homeowners, particularly those who have adopted solar energy in their homes.
The growth of the battery supply chain in Australia is set to create new job opportunities and boost the country’s economy while also providing homeowners with greater access to affordable and reliable battery storage solutions.
In fact, the Future Battery Industries CRC predicts the industry has the potential to be worth almost $17 billion and create more than 60,000 jobs by 2030.
With Australia’s plan to grow its role in the battery supply chain, homeowners can expect to see an increase in the availability and affordability of battery storage solutions.
The growth of the battery supply chain in Australia is also expected to lead to the development of new technologies and innovations. This could include the development of more efficient and effective battery storage solutions and new applications for battery technology in areas such as electric vehicles and renewable energy storage.
Overall, Australia’s battery supply chain’s growth is set to positively impact homeowners, providing them with greater access to affordable and reliable battery storage solutions.
Energy Matters has over 17 years of experience in the solar industry and has helped over 40,000 Australian households in their journey to energy independence.
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