BATTERY
MANUFACTURING

Establishing Australia as a World-Leader in Battery Manufacturing

BUILDING AUSTRALIA'S BATTERY INDUSTRY

Australia is poised to become a global leader in battery manufacturing, leveraging its wealth of critical minerals, strong research capabilities, and emerging battery manufacturing ecosystem. The country has a strategic advantage in producing components such as flow batteries for stationary storage and assembling lithium-ion batteries for niche applications. With growing demand for clean energy and energy storage solutions, Australia is investing in local manufacturing to capture value across the battery supply chain, from mineral refining to battery pack assembly.

Government initiatives like the National Battery Strategy and the $500 million Battery Breakthrough Initiative (BBI) are catalysing innovation, boosting supply chain resilience, and creating thousands of jobs in a rapidly expanding sector.

$2.4B

committed to six large scale Battery Energy Storage System projects in 2025

8.41%

expected annual growth rate for Australian battery market

1^st

Australia is the world’s largest producer of lithium

SECTOR OVERVIEW

Australia’s battery industry has strong foundations, built on a diverse group of innovative companies working across mineral extraction, materials, cell manufacturing, systems integration, and recycling. Despite this, the sector faces challenges that slow progress. These include a fragmented ecosystem, limited local demand, and difficulties in scaling and supply chain transparency.

The industry focuses on key technologies such as lithium-ion, flow batteries, and emerging lithium-sulphur chemistry. Its core activities range from producing critical battery materials to assembling battery packs for various uses. Projects like the Waratah Super Battery demonstrate Australia’s growing energy infrastructure.

While high startup costs and supply chain issues pose hurdles, government backing and private investment are helping the sector grow. This growth could create 44,000 new jobs and contribute $57 billion to Australia’s economy by 2035.

powering australia - battery manufacturing - sector overview

MAKING IT HAPPEN

The National Battery Strategy, announced in May 2024, comprises two major measures; the ~$500m Battery Breakthrough Initiative (ARENA), and the ~$20m Building Future Batteries Capability program which was awarded to Powering Australia; comprising of a $9.93m Demonstrator stream and a complementary $10m Training stream.

The Building Future Battery Capabilities Program includes two key grant streams:

The BWST Training Stream, supports skills training across battery research, manufacturing, transport, recycling, and career pathways development.
The Demonstrator Stream empowers innovation and scale-up through initiatives such as an innovation program supporting mid-stage technologies, a supply chain navigator tool for improving transparency and ESG compliance, and the development of standards and best practice guidelines to enhance safety across the battery manufacturing sector.