The Albanese government has unveiled its long awaited, multimillion dollar battery strategy, but an Illawarra battery builder that was lured overseas due to the billions of dollars on offer in the United States has said the strategy still needs work.
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The government's National Battery Strategy hopes to shift the country's 'dig and ship' mindset to a local renewable energy manufacturing superpower.
Currently, Australia produces half of the world's supply of lithium, industry and science minister Ed Husic said, but less than one per cent of processed battery components.
"Australia is a pioneer of battery tech, yet for too long we've sent our ideas offshore and lost the good jobs they create," Mr Husic said.
One company that has been trying to do that in the Illawarra is Sicona, having commercialised research developed at the University of Wollongong.
The company's global headquarters and a battery manufacturing lab remain in North Wollongong, however the company is planning its first major manufacturing plant to be located in the southeastern United States, due to the incentives on offer and developed supply chain there.
CEO Christiaan Jordaan said the strategy signalled the Albanese government was "moving in the right direction" but the details weren't all there yet.
"It's clear that the strategy is aiming in the right direction, I just don't think it necessarily has the firepower," he said.
The centrepiece of the strategy is $523.2 million for the Battery Breakthrough Initiative which will provide production incentives for battery manufacturers. Details of the scheme are still to be worked out, but Mr Jordaan said that for the proposal to work, there would need to be significantly more funds allocated to the initiative.
If it was available at a rate equivalent to the subsidies on offer in the United States, the Breakthrough initiative would spend its entire budget in two years.
"It's not going to attract a big battery factory to come and build in Australia because that will be eaten up immediately," he said.
Rather than hoping to compete on mass scale, the strategy targets the production of batteries for applications in defence, heavy vehicles and caravan manufacturing. A Guarantee of Origin scheme would also enable Australian-made batteries to demonstrate their green credentials.
"A growing onshore battery industry with strong ESG credentials will support Australia to compete in these expanding markets and accelerate their development," the strategy proposes.
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