{"id":27140,"date":"2022-11-10T08:44:22","date_gmt":"2022-11-10T08:44:22","guid":{"rendered":"https:\/\/www.innovationnewsnetwork.com\/?p=27140"},"modified":"2022-11-10T08:44:22","modified_gmt":"2022-11-10T08:44:22","slug":"how-australia-can-reach-the-summit-of-the-battery-value-chain","status":"publish","type":"post","link":"https:\/\/www.innovationnewsnetwork.com\/how-australia-can-reach-the-summit-of-the-battery-value-chain\/27140\/","title":{"rendered":"How Australia can reach the summit of the battery value chain"},"content":{"rendered":"

Shannon O\u2019Rourke, Chief Executive Officer of the Future Battery Industries Cooperative Research Centre<\/a>, outlines how Australia can position itself as a leader in the global battery value chain.<\/h2>\n

Batteries are set to become the hottest commodity globally in the coming years, as this vital technology of the green energy transition will experience exponential growth to meet the ambitious goals of climate neutrality. Estimates suggest that by 2050, there will be around 700 million electric vehicles on the road, all dependent on a crucial power source, batteries. Similar to how the combustion engine era positioned oil-rich countries at the top of the economic food chain, the e-mobility age provides new opportunities for countries to reap the benefits of the green transition. Australia has the potential to become a battery industry leader, with the country being rich in a range of battery raw materials. The Innovation Platform<\/em> spoke to Future Battery Industries Cooperative Research Centre (FBICRC) CEO, Shannon O\u2019Rourke, to find out how Australia can capitalise on the growing battery value chain and establish a domestic battery industry.<\/p>\n

What potential does Australia have to become a major player in the global battery value chain?<\/h3>\n

Australia is in the driver\u2019s seat to build a domestic integrated battery industry, we are already a major mineral player and a world leader in renewable uptake. We have a ~50% market share in critical ores and leading domestic demand for grid-based and behind-the-meter energy storage.<\/p>\n

Global battery demand is expected to grow at least nine to tenfold over the next decade, with sales values expected to be between $133-$151bn by 2030.1<\/sup><\/p>\n

Looking ahead to 2050, the International Energy Agency forecasts a 40-fold increase in battery investment, eclipsing the opportunity for solar, wind and hydrogen. Batteries are expected to capture 70%2<\/sup> of all renewable energy investment in a net zero world. Lithium exports alone currently add around $5bn in value to Australia\u2019s economy.4<\/sup>\u00a0 Australia\u2019s critical minerals endowment, emerging materials and manufacturing capabilities, global strategic partnerships and our reputation as a low-risk investment destination make us uniquely positioned to play a leading role in the global battery technology revolution.<\/p>\n

However, it is clear that time is running out for Australia to compete in the parts of the battery value chain that hold most of the value-creation and macroeconomic opportunities.3<\/sup> Beyond minerals extraction, Australia could feasibly manufacture the chemicals, advanced materials, cells and modules for integration into global battery value chains.<\/p>\n

What is needed to facilitate this?<\/h3>\n

Given the global scale and importance of the battery industry, we need to co-ordinate all levers behind an ambitious national goal \u2013 to build a vibrant battery industry and secure Australia\u2019s share of this significant economic prize. To do that, we propose a range of measures that fall into two broad categories of a visionary policy environment that is underpinned by mechanisms to drive consumption.<\/p>\n

Visionary policy settings include to:<\/p>\n