A recent report from the Future Battery Industries Cooperative Research Centre (FBICRC) reveals Australia’s battery industry could provide $16.9 billion per annum in value-add and support 61,400 local jobs by 2030.
The report, “Charging Ahead: Australia’s Battery Powered Future”, analyses global and geopolitical influences on the potential growth of Australia’s battery industries and spans Australia’s resource, energy, industrial, foreign affairs and international trade policies.
“In light of recent geopolitical developments, our report shows Australian policymakers 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,” says FBICRC CEO Shannon O’Rourke.
“The challenge is to help build the Australian manufacturing ecosystem and get it to scale. Measures such as the National Reconstruction Fund are essential to give Australian business an opportunity to compete at world scale.”
The report makes key recommendations to harness Australia’s opportunities from significantly accelerated demand for batteries in the past 18 months.
“We are seeing huge interest in battery technologies as part of the energy transition,” says the report’s author, Shaun Chau, sustainability services managing director at Accenture.
“The opportunity for Australia to grow its role in the battery supply chain is large. However, other nations have also woken up to the prospect.
“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.”
Other findings from the FBICRC report include:
- The opportunity for Australian batteries is now more than double previous forecasts.
- Major global economies are vying for greater shares of the battery value chain, creating opportunities and challenges for Australia’s battery industries.
- Australia is cost-competitive but will need to lean into its mineral diversity, reliability, security and environmental, social and governance credentials to capture value chain opportunities.
- Governments must act decisively with policy initiatives to capture midstream and downstream value in the global battery industry.