PERTH (miningweekly.com) – Diversified battery industries could contribute some A$7.4-billion annually to the Australian economy and support 34 700 jobs by 2030, a new report by consulting service Accenture found.

Conducted on behalf of the Future Battery Industries Cooperative Research Centre (FBICRC), the report, titled 'Future Charge: Building Australia’s Battery Industry', assesses 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,” FBICRC CEO Stedman Ellis said.

He noted that over the next ten years, Australia had 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 its energy systems.

Demand for batteries has grown steadily but is now forecast to accelerate, increasing nine to ten fold over the next decade, with sales expected to reach to between $133-billion and $151-billion by 2030.

“Our current battery industries contribute an estimated A$1.3-billion to our gross domestic product 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,” Accenture director of strategy practice Toby Brennan said.

The report identifies six opportunities for Australia to expand its presence across the battery value chain, including continued investment and expansion of refining capacity of locally mined materials, the establishment of active materials manufacturing capability to serve the global value chain, the establishment of battery pack manufacturing & assembly capability focusing on specialised use cases, and the establishment of cell manufacturing capability to complement battery pack manufacturing and assembly activities.

The report also recommends that Australia should leverage domestic capability in integration and maintenance to export services to the region and create a circular economy for battery materials.

In addition, the report also lays out a strategy to create a comprehensive and unified battery industries development policy, including recommendations framed around four core objectives.

These objectives include ensuring that: financially viable businesses throughout the value chain have access to capital from a variety of sources, Australia has battery industry expertise to support diversified growth, Australian-made batteries and battery inputs are in demand, both nationally and globally, and the battery industries, research organisations and education institutions collaborate to drive growth.

The Western Australian Chamber of Minerals and Energy (CME) has welcomed the report, saying it was further validation of the shared aspiration of industry, state and federal governments to take advantage of downstream opportunities in the battery value chain.

These aspirations reflect a desire for Australia to capture value in the global demand for lithium-ion batteries that is expected to increase 24% to 26% annually to 2030. 

“The report acknowledges that WA is the only state in Australia that has a battery industry development strategy, which has been important in market awareness, investment attraction, and laying the groundwork for further downstream activity,” CME CEO Paul Everingham said.

“The findings from this latest report really reinforce the methodical pathway opportunities to develop a downstream industry in Western Australia, a position CME has advocated for a number of years and through several commissioned reports.”

Everingham pointed out that Western Australia has several competitive advantages in the battery space, including endowment of raw materials required for batteries, a world-class mining sector and strong environmental and social governance credentials.  

“The state is already the largest producer of mined lithium, a top-five producer of nickel, rare earths and cobalt, and will also be home to refineries producing highly purified lithium, nickel, and rare earth chemicals. 

"This position underpins significant value and job creation to 2030. The report estimates Australia’s established market position in raw materials and refined products could deliver A$3.7-billion of value-add and, support 14 800 jobs to 2030.”

Everingham said that while the report outlined several recommendations to increase Australia’s participation in cell manufacturing and battery assembly, it also recognised the challenges inherent in developing full-scale battery manufacturing capability, and highlighted interim steps in the value chain that provided the best opportunity to compete globally and develop sustainable downstream industries.

“We need to acknowledge structural barriers in the discussion of moving beyond current activities and into active materials, cell manufacturing, battery pack assembly and recycling," he said.

“Unlocking investment and growing participation in chemical refining and active materials manufacturing should remain front and center of considerations. 

“Efforts to move further downstream will not be successful without meaningful actions from the state and federal governments to support building the foundations of a long-term self-sufficient industry.”