Australia already has the resources and skills to start producing individual battery parts rather than only selling raw materials. That is the conclusion of the national science agency CSIRO in a report on the future of local battery manufacturing. The focus is on lithium-ion and new sodium-ion cells - devices in which lithium or sodium ions carry the charge.
Global demand for batteries is growing because of the electrification of transport, energy and industry. McKinsey analysts expect the global lithium-ion battery value chain to exceed 400 billion US dollars by 2030. At the same time, according to Australia's National Battery Strategy, 96% of total revenue will come from stages after mining. Currently most of that value is created abroad, and Australian critical minerals are mainly exported.
CSIRO proposes not building the entire industry at once but starting with two specific areas. The first is making prismatic cases for battery cells from Australian aluminum by impact extrusion. The second is producing copper foil for current collectors by electrodeposition. Both options rely on the country's existing aluminum and copper reserves, as well as on experience in metalworking, packaging and electrolytic refining.
A cell case is a thin metal can that holds the active parts of the battery. It must withstand internal pressure changes and loads in a crash, not react with the electrolyte, be lightweight and leave as much room as possible for useful energy. Australia can produce cylindrical, prismatic or "blade" cells, but some paths will require major investment in the production of nickel-plated steel and aluminum sheets.
Current collectors are thin metal strips that gather current inside the cell and pass it to the terminals. The copper foil on the negative electrode of a lithium-ion battery is usually only six microns thick - about ten times thinner than a human hair. The aluminum foil on the other side is roughly twice as thick. These components are critically important for performance, safety and battery manufacturing itself.
The report calls electrodeposited copper foil a realistic first priority for establishing local lithium-ion battery production. Such production relies on Australian copper and its refining capacity, can be scaled up by adding new cells, and requires less capital than rolling methods.
CSIRO's lead specialist in advanced battery manufacturing, Adam Best, noted that the work combines knowledge of how components are made with an understanding of what Australian industry can already do. According to him, the country's opportunity is linked not only to what lies in the ground but also to what can be made from it locally.
CSIRO researcher Geoff de Looze added that Australia has many of the building blocks for a battery sector, and the question is where to take the most practical next steps.
The authors emphasize that restoring lost or reduced production links will require careful technical, commercial and market analysis. Especially where capacity must be heavily utilized to remain profitable. But, by CSIRO's assessment, Australia is not starting from zero. It has minerals, part of an industrial base and growing interest in clean energy. With targeted investment, the country can turn more local resources into battery components, supporting jobs and supply resilience.
In addition, CSIRO recently established the Australian Battery Safety Laboratory (ABSF), which will help test and study battery safety. The laboratory is expected to support safe and competitive local lithium-ion battery manufacturing.