With electrification of our transport, energy system and industry driving global demand in batteries, new analysis reveals Australia already has the capacity to become a battery manufacturing powerhouse.
The future of Australian battery manufacturing: Cell cans and current collector foils, by Australia’s national science agency, CSIRO, identifies where local industry has the skills, materials and expertise to make key components for lithium-ion and emerging sodium-ion batteries.
The report looks beyond Australia’s critical-minerals strengths to ask a more practical question: what would it take to turn more of those local resources into the parts that make up every battery cell?
CSIRO Advanced Battery Manufacturing lead, Dr Adam Best, said the work combines expertise in advanced manufacturing, battery materials and industrial process assessment, bringing together knowledge of how battery components are made with a practical understanding of what Australian industry can already do.
“That combination is central to the report’s message that Australia’s battery opportunity is not only about what lies in the ground, but what can be made here from it,” Dr Best said.
McKinsey analysis projects the global lithium-ion battery value chain could grow to more than US$400 billion by 2030, while the Australian Government’s National Battery Strategy notes that 96 per cent of the total revenue opportunity is expected to occur downstream of mining. Today, much of that value is captured offshore, with the bulk of our critical minerals being exported. CSIRO’s work shows Australia has a pathway to change that story by building sovereign capability in selected parts of the battery supply chain.
“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 build every part of a battery industry at once, the report points to two promising first steps: making prismatic battery cell cans from Australian aluminium using the impact extrusion process, 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 said the study focused on realistic opportunities to move from minerals and materials into higher-value components.
“Australia has many of the building blocks needed for a battery manufacturing sector,” Mr de Looze said.
“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.”
Battery cell cans are the thin metal cases housing a cell’s active parts. Although apparently simple, they must withstand internal pressure changes and crash loads, remain compatible with electrolyte chemicals, minimise weight and leave maximum space for energy storage - all at low cost. Australia could feasibly make any of the cylindrical, prismatic or ‘blade’ cell formats, although some pathways would require major investment in production of nickel-plated steel and aluminium sheet.
A practical first step for Australia could be producing prismatic battery cans from aluminium. Australia already has a strong aluminium industry and experience manufacturing similar products, including aerosol cans. The report recommends investing in facilities and production equipment tailored to making battery cans locally.
A battery’s current collector foils support the cell’s electrochemical core and carry current to its terminals. The copper foil on a lithium-ion battery’s negative electrode is typically just six microns thick - about one-tenth the thickness of a human hair - while the aluminium foil on the other side is about twice as thick. These highly engineered components are critical to battery performance, safety and production.
The report identifies electrolytically deposited copper foil as a viable first priority for establishing a local lithium-ion battery manufacturing sector. It would build on Australia’s copper production and refining capability, can be scaled by adding production cells over time, and is less capital-intensive than rolling routes.
“Australia is already a critical minerals powerhouse, but the next opportunity is to capture more value through manufacturing,” Dr Best said.
“By focusing on practical, technically achievable steps, Australia can build capability, support industry growth and contribute to more resilient battery supply chains both domestically and internationally.”
Rebuilding lost or reduced downstream capability will require careful technical, commercial and market analysis, particularly where facilities need high utilisation to be viable. But CSIRO’s analysis shows that Australia is not starting from scratch. It has the minerals, parts of the industrial base and growing national interest in clean energy manufacturing. With targeted investment, it could turn more local resources into battery components made here, supporting jobs, supply-chain resilience and long-term energy security.
With this in mind, CSIRO has recently established the Australian Battery Safety Facility (ABSF), strengthening Australia’s capability to test and understand battery safety as the country builds its domestic battery industry. The facility will play an important role in supporting a safe and competitive local lithium-ion battery manufacturing sector, helping Australian-made battery technologies meet the performance and safety expectations needed for domestic and international markets.
The future of Australian battery manufacturing: Cell cans and current collector foils report was funded through the AU-USA Battery R&D Grant, an Australian Government-supported initiative.
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