Australia Releases New Policy To Augment Battery Production

Highlights :

  • The government has already earmarked $20.3 million towards the Building Future Battery Capabilities initiative, laying the groundwork for enhanced collaboration and innovation on a national scale.
Australia Releases New Policy To Augment Battery Production Australia Gov Release $20.3 Mn To Augment Battery Production

Australia is currently positioned as one of the 15 top-ranked global leaders in mineral resources, and commodities, underscoring its potential to drive innovation and economic growth. Recognizing this, Australia has embarked on a transformative journey with its National Battery Strategy, a pivotal initiative to catalyze a robust domestic battery industry.

This new strategy according to the Australian Energy Market Operator (AEMO) has forecast that Australia will need 19 GW of energy storage capacity in the grid by 2030. This is expected to more than double to 43 GW by 2040, with over half of it in home and community batteries (including EV to the grid) (AEMO 2023). 

Earlier this year, the Australian government shared its plan to boost its solar module manufacturing locally. The government yesterday in its latest budget had also announced special packages for boosting solar module manufacturing and renewable energy in the region.  As per the budget document of the government, the Australian government will allocate $3.2 billion in the next decade to support the commercialization of technologies, considered critical to net zero. This also included a fund of $1.7 billion for the Future Made in Australia Innovation Fund.

The country has already announced earmarking $1.5 billion to strengthen battery and solar panel supply chains via the Solar Sunshot Program and Battery Breakthrough Initiative. “The Government is providing $1.5 billion in support administered by the Australian Renewable Energy Agency for the manufacturing of clean energy technologies that strengthen supply chain resilience. The $1 billion Solar Sunshot program will incentivize private investment in solar panel manufacturing capability and the Battery Breakthrough Initiative, costing $523.2 million over seven years, will promote further opportunities to add value to Australia’s critical minerals and target the high-value opportunities in the battery manufacturing value chain,” the budget document said. 

Recently, to extend support to this strategy, the government has unveiled the  $523.2 million battery breakthrough program. This investment is designed not only to fortify economic resilience but also to elevate critical battery manufacturing capabilities within Australia. Aligning seamlessly with the overarching vision of the government’s Future Made in Australia agenda, this initiative offers production-linked incentives tailored to Australia’s competitive advantages.

The government has already earmarked $20.3 million towards the Building Future Battery Capabilities initiative, laying the groundwork for enhanced collaboration and innovation on a national scale. Central to this effort is the support for the Future Battery Industries Cooperative Research Centre (FBICRC), tasked with spearheading the development of a comprehensive supply chain navigator tool. This tool promises to galvanize the Australian battery ecosystem by providing invaluable insights into customer dynamics, capabilities, traceability, and environmental, social, and governance (ESG) considerations.

Moreover, the FBICRC is poised to leverage its extensive network across industry and academia to drive a battery innovation and scale-up program. This program will catalyze commercializing cutting-edge Australian battery technologies while adhering to best practice guidelines and safety standards.

The government’s commitment extends beyond financial support, encompassing a multifaceted approach to nurturing talent and infrastructure. Through initiatives like the Priority Industry Skills Fund and the Future Made in Australia Act, the government is laying the groundwork for a skilled workforce equipped to thrive in the burgeoning clean energy technology sector.

Underpinning these efforts is a comprehensive investment strategy aimed at bolstering critical minerals processing and clean energy technology manufacturing. With a $7 billion commitment to critical minerals processing and substantial funding for innovation, research, and workforce development, Australia is poised to emerge as a global powerhouse in renewable energy and battery technology.

In essence, Australia’s National Battery Strategy represents a paradigm shift towards sustainable economic growth and technological leadership. By leveraging its abundant mineral wealth and fostering a culture of innovation and collaboration, Australia is poised to carve out a prominent place in the global battery market, driving prosperity for generations to come.

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