Australia possesses the existing industrial capability and critical resources to become a battery manufacturing powerhouse, according to a new report released by national science agency CSIRO.
The report, titled The future of Australian battery manufacturing: Cell cans and current collector foils, highlights how local industry can expand beyond critical mineral exports to produce high-value components for lithium-ion and sodium-ion batteries.
With McKinsey projecting the global lithium-ion battery value chain to surpass US$400 billion (AU$570.2 billion) by 2030, the Australian government’s National Battery Strategy notes that 96 per cent of total revenue potential exists downstream of mining.
Today, the majority of Australia’s raw minerals are exported offshore, forfeiting significant economic value.
CSIRO Advanced Battery Manufacturing lead Dr Adam Best stated that capturing more downstream value would allow Australia to generate skilled manufacturing jobs and build resilient supply chains for the clean energy transition.
“Bringing more of the value chain onshore would mean Australia could move beyond exporting raw and refined materials alone, towards creating higher-value products, supporting skilled manufacturing jobs and strengthening supply chains for technologies that will underpin the clean energy transition,” Dr Best said.
Rather than attempting to construct an entire battery industry overnight, the report outlines two immediate, practical priorities: producing prismatic battery cell cans from Australian aluminium and producing copper current collector foil using electrolytic deposition.
Both opportunities align with Australia’s aluminium and copper resources and its metal-forming, packaging, electrorefining and electrowinning expertise.
CSIRO researcher Geoff de Looze emphasised that Australia already holds many essential building blocks, noting that targeted investments can unite local materials with existing industrial strengths.
“The question is where we can take the most practical next steps. This work identifies areas where Australian materials, existing industrial capability and targeted investment could come together to create a stronger domestic supply chain,” he added.
To support this growth, CSIRO has established the Australian Battery Safety Facility (ABSF) to conduct comprehensive safety and performance testing, ensuring domestic products satisfy international standards.