Report points to $16.9b battery opportunity

Australia’s battery industry opportunity could provide $16.9 billion in value-add and support 61,400 new local jobs by 2030 according to a new report. The Future Battery Industries Cooperative Research Centre (FBICRC) is behind the report, Charging Ahead – Australia’s Battery Powered Future. “In light of recent geopolitical developments, our report has shown 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," FBICRC chief executive officer Shannon O’Rourke said. North and North-West Queensland's role in this sector does not go unnoticed, with the document citing examples including Richmond Vanadium, QEM and Multicom as vanadium pentoxide sources, Sconi proponent Australian Mines as a cobalt source, and Queensland Pacific Minerals' TECH project as a nickel sulphate and cobalt sulphate source. Vecco Group's planned vanadium electrolyte plant is cited in a chart noting Australia’s current presence in manufacturing active materials and electrolytes, while Alpha HPA's Gladstone operation is listed as an example for Australia's capability in high purity alumina production. Related: Townsville charged up as battery supply base The report shows that the rapid growth of global demand and the increased forecast value of battery packs has amplified the opportunity for Australia. Diversified battery industries in Australia could now contribute $16.9 billion gross value added (GVA) to the economy by 2030, which is more than double the GVA contribution of $7.4 billion forecast in the FBICRC’s Future Charge report in 2021. But Australia will need to lean into its comparative advantages of mineral diversity, reliability, security and ESG credentials to be competitive as major global economies vie for greater shares of the battery value chain. The report states that Australia has key sources of differentiation across the value chain and is cost comparable with peers, but global subsidies are eroding Australia’s cost position, particularly in battery manufacturing. To drive greater competitive advantage, Australia will need to leverage its: Critical mineral wealth; to drive cost synergies through vertical integration and co-location, and to provide unique supply diversity. Reliability and security; to position Australia as an alternative secure source of supply, enabling countries to diversify their supply chain and secure materials for their growing domestic battery industries. Environmental, social and governance (ESG) credentials; to differentiate Australia against rivals as a responsible provider of battery materials and products. Governments must act quickly and decisively to capture midstream and downstream value in global battery industries, the report concludes. FBICRC was established in 2019 through the Australian Government’s Cooperative Research Centre Program. It brings together partners with a presence across the battery value chain from Australia’s established strength in mining through to processing, manufacture, services and recycling and reuse of batteries. See the full Charging Ahead Report here.

Report points to $16.9b battery opportunity

Industry Queensland

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