Australia has long been a global mining leader, but its downstream capability is becoming more pronounced, including the emergence of a battery manufacturing industry.
In fact, a report from the Future Battery Industries Cooperative Research Centre (FBICRC) suggests Australia’s battery opportunity has doubled in the last 18 months and could contribute $16.9 billion to the Australian economy by 2030.
FBICRC’s report, titled Charging Ahead – Australia’s Battery Powered Future, suggests Australia should leverage its mining and geological upside, particularly in the production and endowment of critical minerals, to support capabilities further downstream.
This not only encompasses battery manufacturing but other segments in the value chain, such as refining and active materials.
“Australia has critical mineral resource wealth and is already an effective mining nation,” the report states. “Australia has competitive advantages for refining which indicate only moderate (government) support is necessary.
“Australia has lower levels of comparative advantage in cell manufacturing and active materials, but both have significant economic and strategic value. These segments support jobs and industrial complexity and should be prioritised by government.
“For both segments, attracting an established leader with access to markets is essential to delivering at pace.”
FBICRC said Australia’s battery opportunity has been benefited from rising global battery demand. The independent research centre forecasts demand for batteries to be 64 per cent higher in 2030 than prior estimates.
However, with governments across the world adopting increasingly ambitious policies to grow their battery industries, Australia will need to act quickly.
“China is currently the dominant player across the battery value chain,” the report states. “However, many countries are now seeking to diversify their battery supply chains, creating opportunities for alternative suppliers such as Australia.
“Australia’s strategic and defence partnerships in the Asia-Pacific region have strengthened, creating an opportunity for Australia to partner with its allies to develop its battery industries.”
This sentiment was echoed by FBICRC chief executive officer Shannon O’Rourke.
“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,” he said in a statement.
“The challenge is to help build the Australian manufacturing ecosystem and get it to scale. Measures like the National Reconstruction Fund are essential to give Australian business an opportunity to compete at world scale.”
The Albanese Government’s National Reconstruction Fund recently passed the Senate. The $15 billion initiative is aimed to help Australia “capture the opportunities of today and tomorrow by growing and creating industries over the long-term”.
Several Australian mining companies are already advancing their capabilities to capture new opportunities downstream. This includes lithium miners Pilbara Minerals, IGO and Mineral Resources, all of which have become involved in midstream and downstream lithium processing projects.
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