Australian government backs EV battery manufacturing

The government's Australian Renewable Energy Agency (ARENA) has backed commercialisation of Australian EV batteries producer under the Future Made in Australia agenda.

The batteries aim to increase charging speeds up to 40% and battery density by 20% faster than conventional batteries, while remaining compatible with existing production lines.

ARENA will provide up to $45 million to support Sicona Battery Technologies (Sicona) for manufacturing of its advanced silicon-carbon battery anode material SiCx®.

Delivered under the Battery Breakthrough Initiative (BBI) funding program, the project involves the construction and operation of a commercial-scale demonstration facility.

ARENA chief executive Darren Miller said the project supports the development of next-generation battery technologies and strengthens Australia's role in the global battery supply chain.

"This project 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," Miller said.

Sicona chief executive Christiaan Jordaan added: "It shows Australia can do more than export 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."

Miller noted improving battery performance will help to further accelerate the uptake of electric vehicles and lowering emissions.

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

"The technology has undergone independent testing and is already being evaluated by global battery and electric vehicle manufacturers, highlighting its strong commercial potential."

Jordaan said battery-powered industries need higher performance at lower cost and the technology is designed to deliver faster charging, greater energy density and a scalable pathway into existing lithium-ion battery supply chains.

"The Wollongong facility will allow us to validate our process at commercial scale, deliver SiCx® to customers, and accelerate our path to market," he said.

IEA Global EV Outlook 2026 found average battery prices declined by 8% in 2025, supported by continued improvements in manufacturing efficiency, advances and shifts in battery chemistries and technology, and intensifying global market competition.

While China accounts for over 80% of the global total battery manufacturing capacity, the European Union and the United States account for 6-7% each.