Battery Breakthrough: Arena seeks feedback on design of $523m funding scheme

Consultation has launched on federal Labor’s Battery Breakthrough Initiative, as the government seeks feedback on how best to proceed with its $523 million bid to supercharge Australia’s battery manufacturing sector.

Central to the National Battery Strategy – and a key plank of the Future Made in Australia plan alongside the $1 billion Solar Sunshot – the Battery Breakthrough Initiative is being led by the Australian Renewable Energy Agency (Arena), working closely with the Department of Industry, Science and Resources.

The major funding initiative, announced in 2024-25 federal budget, is expected to be formally launched in December 2024 or January 2025, and to open to submissions in February 2025.

In a consultation paper published on Wednesday, Arena proposes the program would initially focus on the production of active materials, battery cell manufacturing and battery pack assembly. But it will first consult with industry on market readiness, and design of the program.

A draft program design also proposes that funding could be provided in the form of production incentive payments, grant funding paid on completion of project milestones, and/or recoupable grants, where funding may be repaid in certain circumstances.

“Energy storage technology is absolutely critical for our renewable energy future,” said Arena chief Darren Miller on Wednesday.

“The Battery Breakthrough Initiative will aim to commercialise battery manufacturing technology and processes, provide clean energy opportunities for Australia’s workforce and allow Australia to leverage its expertise in energy storage.

“We want to work with industry to identify where the opportunities are.”

The consultation paper notes that all electrochemical battery chemistries are eligible for the federal funding, including flow batteries, but this does not include supercapacitors, hydrogen electrolysers or fuel cells.

Arena is also proposing that the maximum funding a single project can apply for is $200 million, which it says would ensure that there is “sufficient budget to support multiple successful applicants for projects of different scales.”

Consultation is open until 10am, Monday 7 October 2024. Submissions can be made here.