Here’s your opportunity to have a say in how an Australian Government program goes about supporting the development of a local battery manufacturing industry.
As part of the Albanese Government’s Future Made in Australia (FMA) policy agenda, the National Battery Strategy was published in May this year. The Strategy outlined how the Government will provide a helping hand to the Australian domestic battery industry, with view to Australia being a globally competitive producer of batteries and related materials by 2035. One of the elements is the $523.2 million Battery Breakthrough Initiative.
The program is being designed by the Australian Renewable Energy Agency (ARENA – which will also be the delivery agency) and the Department of Industry, Science and Resources (DISR).
“The Battery Breakthrough Initiative will aim to commercialise battery manufacturing technology and processes, provide clean energy opportunities for Australia’s workforce and allow Australia to leverage its expertise in energy storage,” said ARENA CEO Darren Miller.
When it comes to home batteries, there are a few local companies manufacturing products; but all are using cells produced outside our shores. Beyond home batteries there’s also EV, neighbourhood and community, and grid-scale energy storage solutions to consider. As well as export market potential, Australia will be needing a shedload of all of the above as part of its renewable energy transition – and this provides a significant opportunity for local manufacturing.
Initial Focus: Battery Materials, Cells And Packs
At this point, it’s proposed that the Battery Breakthrough Initiative will kick off supporting the production of:
- active materials, cathodes, anodes and flow battery electrolytes
- the manufacture of any type of electrochemical battery cell1.
- battery pack assemblies, which includes incorporating battery management systems (BMS).
ARENA is considering providing financial support in various forms – such as production incentive payments, grant funding tied in with milestones, recoupable grants or a combination of the three. It’s proposing the minimum funding for a project to be $2 million, and the maximum, $200 million.
Among the eligibility and merit criteria:
- Applicants must hold an ABN and be either an Australian registered company, Commonwealth corporate identity, state or territory owned corporation (or subsidiary thereof), or be a local government or council (or an organisation representing them).
- Projects must be located in Australia.
- There’s also a knowledge sharing aspect, intended to focus on providing general learnings from beneficiary projects.
Community Benefit Principles are being established to ensure government support and the private investment it attracts flows on to communities in ways that benefit local workers and businesses, such as safe and secure jobs.
ARENA is now seeking feedback on market readiness and design of the program. While requesting feedback on the questions contained within the Consultation Paper, comments on other design considerations not raised will be accepted. Written submissions are open until 10:00am AEDT on 7 October 2024.
Further information, including access to the Consultation Paper, can be found here.
Solar Sunshot Under Way
Another aspect of Future Made In Australia is the $1 billion Solar Sunshot Initiative; designed to support Australian solar PV manufacturing innovation and related supply chains. It’s further along the track, with two initial funding rounds opened at the beginning of this month.
Round 1A ($500 million) expressions of interest are due on 10 December 2024, and the deadline for full applications is 30 April 2025. Round 1B is worth $50 million, and full applications for that are due on 2 November 2025. ARENA says it expects to launch one or more further funding rounds for Solar Sunshot next year.
Footnotes
- ARENA notes supercapacitors, hydrogen electrolysers and fuel cells are not considered to be electrochemical batteries under the Program. ↩
About Michael Bloch
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We need to move the focus away from the individuals that can afford the premium home batteries and look for the solution that will help everyone.
I say home batteries are premium because EVs have larger batteries and cost less. (4x Tesla Power wall (13.5 kWh x 4 = 54 kWh) $54, 400 Vs Tesla model 3 (57.5 kWh) $54,900 ) are we to believe that the wheels, electric motor, glass, entertainment system, doors and seats are free?
V2G appears to be the way around accessing the lower cost battery storage from an EV.
If councils had V2G installed at all public spaces they look after (including parks and playgrounds), the service would be spread among the community.
Being spread across the suburbs where the power is being used reduces the grid transmission lines wastage and capacity needs. Being owned by the council if profitable could lead to reduced rates with the overall effect of reducing the cost of electricity that will benefit the community regardless if they can afford a home battery system.
If the service rewards the EV owners for use of their batteries during peak times, even Grid operators / maintainers that are prevented from building power delivery systems that run EVs can support the system indirectly.
How would public operators track who is charging to or from the grid? And would it be financially viable given a bidirectional charging unit can cost $10,000? (Feel free to point out if there’s cheaper around, I just did a quick Duck).
While your point about the Powerwall costing slightly more per kWh than a Tesla Model 3 is valid – assuming no discount for bulk purchase applies, larger battery systems are vastly cheaper per kWh than smaller ones so scale is a factor. How many households need a 57.5 kWh or 54 kWh battery system? Most are probably aiming for about the 10 kWh mark, perhaps 20 kWh if heavier users, or going off grid with large solar and low usage. Smaller size means greater cost per kWh.
As for home batteries being premium compared to EVs, isn’t it actually the reverse? EVs are a premium form of transport given petrol\diesel\traditional vehicles cost less, offer far greater range etc. Most people don’t need an EV size battery for their homes, but do need a larger EV battery to avoid range anxiety or issues. And of course they don’t want to be spending 5x the price of a home battery to get an EV. There’s a reason hybrids are so much more popular than battery operated vehicles.
Are there actually any Australian battery companies? Yes that’s an honest question.
I vaguely recall hearing about Redback but don’t see it listed on SQ’s battery page. Maybe that was an inverter rather than a battery review? I also see Red Earth listed as an Aussie company. Both appear to be QLD options which is a queer coincidence. But Red Earth’s batteries (or the cells) are imported. Not sure about Red Back. Oh there’s also Eguana in South Australia manufacturing batteries listed. But like Red Back I’m not sure if it’s simply local assembly of foreign parts, or actually made in Australia
Note it appears that Red Earth’s assembly of foreign battery cells is enough to qualify their product as Made in Australia so views of what counts as made in Australia may vary.
To my knowledge how easy it is to claim to be “made in Australia” has always been a major issue.
A easy but unrelated example i always remember was some snack/foods products sold in woolworths at the time i checked they were imported in their foil bag’s alongside the empty cardboard boxes and merely packed together in Australia and marked as made in Australia.
Though admittedly that example is well over a decade old but iv never heard of the standards changing.
On batteries i believe there is local manufacturers but I’m not sure if any still operating solely own their own design as the only one that comes to mind i believe shut down though if there is i expect someone here will comment a correction.
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A slight addition to another post is to also remember that home batteries need appropriate safety features for a fixed permanent install in a residence as well
And if you’re just using a vehicle as a home battery for obvious reasons you cant also use it as a vehicle at the same time. not counting the reduction in the vehicle’s batteries lifespan if its also used for the standard household battery load.
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@George Kaplan
Don’t forget the more mid range for example for complete self sufficiency my current desired setup has 2x16kwh for 32kwh of batteries.
Redback Technologies are a Brisbane-based provider of integrated inverter and battery solutions. Their IP lies with the integration and software aspects. Their batteries, inverters, and switchgear are components sourced locally and abroad.
I suspect the problem with a local battery program is that we don’t have the necessary local supply chains in place. Historical governments have focussed on globalisation at the expense of local manufacturing, which in turn decimated the suppliers.
From that perspective, $523m is really undercooked. Developing a globally competitive battery industry requires a robust, efficient, and competitive multi-tier supplier network. So, either we need to milk the Australian public with protectionist restrictions that force local supply, or, we need to go all-in and develop the appropriate supply chains that support a local battery industry. It needs more than a government agency offering a few grants; I expect it would need deep and lasting coordination between many disparate sectors (defence, health, energy, etc.).
Obviously V2G is a huge opportunity but as always less talk and more action needed !!
-Not enough investment to get the ball rolling down the hill.
-V2H technology increases useability, economics and environmental benefits. Should be considered at every stage along with maximising ability to charge at work locations during the day. Power at work provided for free if you can demonstrate no evening grid draw from your own household.
-Battery reusability and battery recyclability a must, perhaps a chain of custody for each battery to make sure being reused not discarded.
-Nano carbon research for cathode, anode and super capacitor development.