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ARENA backs next-generation battery technology with $45M funding to Sicona

30 Jun, 2026



The Australian Renewable Energy Agency (ARENA) will invest AU$45 million in funding support to Sicona Battery Technologies for building a commercial-scale demonstration facility for its advanced silicon-carbon battery materials.

Delivered under the federal government’s Battery Breakthrough Initiative, the project will see the facility constructed and operated in the Illawarra region, potentially within BlueScope’s Port Kembla precinct.

As global demand for higher-performing electric vehicle (EV) batteries grows, charging speed, driving range, and cost remain major barriers to widespread local adoption.

Sicona’s proprietary silicon-carbon anode technology, known as SiCx, aims to directly solve these issues. It boasts the potential to increase battery density by 20 per cent and deliver charging speeds up to 40 per cent faster than traditional graphite anodes, all while remaining compatible with existing lithium-ion production lines.

ARENA CEO Darren Miller said the investment supports the development of next-generation tech and strengthens the nation’s role in the global supply chain.

“Sicona’s technology has the potential to deliver faster charging, longer driving range and lower-cost batteries,” Miller said.

“This project also supports the development of domestic capability in advanced battery materials, reducing reliance on imported components and strengthening Australia’s position in the global battery supply chain.”

Unlike incumbent silane-based approaches, SiCx is manufactured using a mechanical process that is safer, more scalable, and lower cost. Material samples produced at the Illawarra plant will be shipped overseas for advanced testing, enabling Sicona to lock in lucrative offtake agreements with premier global automotive and battery manufacturers.

Sicona Founder and CEO Christiaan Jordaan noted that the Wollongong facility proves Australia can do more than just extract critical minerals.

“We can manufacture advanced materials, create skilled jobs, and compete in the high-value battery supply chains that will power the global energy transition,” Jordaan said.

The development of the state-of-the-art facility is expected to create up to 36 skilled local manufacturing jobs while driving workforce development and training partnerships in the region.

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AUSTRALIAN RENEWABLE ENERGY AGENCY – ARENA

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