Australia’s $7.4 billion opportunity in future battery industries

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New report reveals diversified battery industries could add 34,700 Australian jobs by 2030

Diversified battery industries could contribute $7.4 billion annually to Australia’s economy and support 34,700 jobs by 2030, according to a new report (June 2021) prepared for the Future Battery Industries Cooperative Research Centre (FBICRC) by Accenture.

Future Charge: Building Australia’s Battery Industries is a comprehensive assessment of Australia’s economic opportunity to leverage its competitive advantages as a major supplier of battery minerals and expand its role within a growing global industry. As well as quantifying the value adding opportunities available to Australia, the report proposes a set of actions that are required from government and industry to capture the battery opportunity.

 “This report provides a compelling business case for Australia to develop into a competitive player in the international batteries industry, and Australia has many strengths for succeeding in this ambition. We are shining a light on the different segments of an industry in which Australia can be a leader, and there is substantial economic value to gain if we capture the opportunity.” Stedman Ellis, CEO of the FBICRC said.

 Over the next ten years, Australia has an opportunity for real industry growth, shaped by changing international relationships and driven by technological improvements in batteries, increasing demand for energy storage and regulatory changes within our energy systems. Demand for batteries has grown steadily but is now forecast to accelerate, increasing 9- to 10-fold over the next decade, with sales expected to reach US$133-151 billion by 2030.

“Our current battery industries contribute an estimated $1.3 billion to our GDP and 6,000 jobs, almost all of which comes from mining raw materials. That will grow substantially over the next decade as demand for our battery minerals grows – but almost twice the economic gains can be achieved if Australia invests in diversifying its battery industries.” Toby Brennan, Director within Accenture’s strategy practice said.

The report identifies six opportunities for Australia to expand its presence across the battery value chain:

  1. Continue to invest and expand refining capacity of locally mined materials
  2. Establish active materials manufacturing capability to serve the global value chain
  3. Establish battery pack manufacturing & assembly capability focusing on specialised use cases
  4. Establish cell manufacturing capability to complement battery pack manufacturing and assembly activities
  5. Leverage domestic capability in integration and maintenance to export services to the region
  6. Create a circular economy for battery material.

The report also lays out a strategy to create a comprehensive and unified battery industries development policy, including recommendations framed around four core objectives:

  1. Financially viable businesses throughout the value chain have access to capital from a variety of sources
  2. Australia has battery industry expertise to support diversified growth
  3. Australian-made batteries and battery inputs are in demand, both nationally and globally
  4. The battery industries, research organisations and education institutions collaborate to drive growth

The Future Battery Industries CRC brings together industry, researchers, governments and the community to ensure Australia plays a leading role in the global battery revolution.

Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, Accenture offers Strategy and Consulting, Interactive, Technology and Operations services.

You can read the full report here: Future Charge Report

You can read the press release from the Canberra launch of the report here: Future Charge Press Release

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