Australia’s $55 billion battery opportunity

Amid soaring demand for battery metals, Australia holds the opportunity to leverage its world-leading status in raw material production into a multi-billion-dollar industry.

That’s the view of Future Battery Industries CRC, supported by its recent findings that demand for battery metals has outstripped past estimates by a whopping 64 per cent, with a 35 per cent jump in prices to match.

“The time to act is now,” the centre’s CEO Shannon O’Rourke said.

 Future Battery Industries CRC CEO Shannon O’Rourke

Mr O’Rourke said the US government’s $US370 billion clean energy fund could provide Australian companies $16.9 billion in benefits.

The flow from such a staggering number could potentially provide around 61,400 local jobs and bring in $55.2 billion in additional GDP by 2030.

“That is more than double what is estimated from a strategy solely focused on mining,” he said.

“We suggest that instead of getting commercial funds behind the National Reconstruction Fund (NRF), we get sovereign funds and it makes sense that the state with the greatest stores would be the one to benefit.”

“And Western Australia, being the State with the greatest quantity of mineral resources, is probably best placed to succeed.”

Under Labor, the NRF will establish a $1 billion fund to support the local industry.

“There is a window of opportunity for Australia to become a key player in battery manufacturing and the entire value change to export onto the world stage,”  Minister for Industry and Science Ed Husic said during a speaking engagement at Canberra’s National Press Club.

“We can’t let that window close on us,” Mr Husic said.

“We are recognised as possessing some of the greatest stores of critical minerals and rare earth on the planet, and that’s why I’ve said if we mine it here, we should make it here.”

And while Australia has the resources beneath the ground, the competition to claim the immense value of the industry is bound to be ferocious.

“The battery industry has taken off. We see huge interest in battery technologies as part of the energy transition,” report author Shaun Chau said.

“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.”