Now the dust has settled, some important points made in some of the commentary, especially about the prospects of manufacturing in Australia and the opportunity.
The Government has shown that it believes Australia can manufacture. Also that Australia can have a positive transition to a low carbon future that includes home made battery technologies to support a stable and reliable renewable energy grid, a transition that will support new manufacturing industries and a transition where we can build our own secure and resilient battery supply chain.
There is $14.1 billion related to advanced material and battery supply chain, including the $500m Battery Breakthrough Initiative, $1.7billion Future Made in Australia Innovation Fund and the $7.0 billion production tax credit..
Our members comments show the budding advanced material and battery sector has technology at different readiness levels, and there are benefits to all.
Redflow says “ the budget recognises the critical significance of battery storage in firming up the national grid as renewable energy replaces the existing fossil fuel generation fleet and national energy storage capability, to ensure energy security. It is the long-duration and large MWh systems that will be required to adequately firm up Australia’s national grid and allow for solar and wind generated energy to be utilised by consumers on a 24-hour cycle.” Reflow is seeking support to underpin its scale up plans, including Australian based manufacturing.
Li-S Energy says “We are pleased the government has acknowledged the important role that battery technologies will play in the transition to net zero, by supporting the roll-out of renewable energy. Highly efficient batteries are quickly becoming an important factor in this transition. We need to be able to produce them here, in Australia, utilising our expertise and natural resources.”
Alpha HPA has received $400million, jointly funded by Northern Infrastructure Facility (NAIF) and Export Finance Australia (EFA) funding under the $4 billion Critical Minerals Facility. The Company said “this means they can ramp up production faster, creating over 10,000 tonnes of ultra-high purity aluminium products annually to the in-demand LED lighting, lithium ion battery, semi-conductor and synthetic saphhire markets. It’s a major win for Australian manufacturing and our role in the global clean tech race.”
There is plenty of support from economists and industrial experts that recognise the opportunity of the energy transition to build new industries, support this approach and this positive view of Australia’s capability.
Professor Roy Green in @AuMaunfacturing said the Future made in Australia Act “is a timely recognition at the highest levels of government that ‘old orthodoxies’ have failed to shift the dial on stalled productivity, wage stagnation and energy transition.”
Renowned economist and author, Mariana Mazzucato said in the AFR, the Future Made in Australia Act presents an opportunity to orient industrial strategy around a bold net zero mission that engages multiple sectors, catalysing cross-sectoral collaboration, innovation and investment, with the potential to lead to spillovers, boost productivity, create jobs and generate growth – all on the way to solving one of the most pressing challenges of our time.”
Roy Green explains the opportunity this government support recognises, that is “gaining share in advanced industries is critical because it means a larger economy, higher skill jobs and a more resilient and sophisticated industrial base. The hollowing out of manufacturing, which together with related services drives research and skills development in most economies, has left Australia vulnerable to commodity price cycle and supply chain shocks.”
This initiative, together with the $570 million Queensland Battery Industry Strategy recognises what is needed to be successful, Professor Green says, to make the most of the opportunity “will require close collaboration by industry with research and education institutions, including CSIRO, which can and do play a major part in lifting innovation and enterprise capability.” This collaboration is the one of the key AMBC goals.
Our members are perfect examples of collaboration between university research, supportive government and our innovative industry that are building a new industry to Australia’s benefit.
One illustrative example of the developing advanced material and battery ecosystem is from LI-S Energy that are using Australian patented IP from Deakin University and are now commissioning a production facility in Geelong. LI-S Energy’s dry room is home to one of the most sophisticated lithium sulfur pouch cell production lines in the world.
There are others that will be supported by the FY2025 Federal Budget measures and the Queensland Battery Industry Strategy will make a huge difference.
Go Advanced Material and Battery supply chain in Australia!