According to Bloomberg, the Australian startup Recharge Industries Pty plans to build a $US300 million ($210 million) factory capable of producing lithium-ion batteries without relying on materials imported from China.
Currently, most lithium-ion battery manufacturing facilities are located in China. Other countries are trying to find alternatives for the Asian country.
Although Australia is the world’s largest supplier of lithium, an important battery metal, it currently sends most of its battery raw materials to China for processing into components. Data compiled by BloombergNEF showed that China has about 1,000 gigawatts of cell manufacturing capacity, accounting for more than 80 percent of the world’s total.
A new energy era
Recharge Industries Pty Ltd has identified a location in Geelong, South East Australia, and plans to begin construction in the second half of this year. Founder David A. Collard stated in an interview that production could begin as late as 202.
“Australia is the new Saudi Arabia of the new energy age,” Collard, a former partner at PriceWaterhouseCoopers LLP, told Bloomberg. “Within the next 100 years, we will have all the major critical minerals.”
The annual capacity of the plant will initially be two gigawatts, which can increase to a planned total capacity of 30 gigawatts. Collard also mentioned that the company has sales contracts with energy storage projects in India.
The United States, Australia, and India are seeking a green transition that will allow them to expand domestic clean energy production capacity while reducing dependence on Chinese imports.
According to Bloomberg New Energy Finance, there are 25.6 gigawatt hours of battery manufacturing projects in Australia.
Lithium raw materials are not sourced from China.
An Australian company has announced that their batteries do not use cobalt or nickel and also avoid imports from China. Lithium raw materials are sourced from mines in Australia and South America, and they use refined lithium from Australia and the United States, Bloomberg reported.
In an interview, Collard said it had raised funding for Recharge through its venture fund, Scale Facilitation, and supporters, including Australian hedge funds, investment managers, and strategic investors involved in the project.
After the first stage, in the next two stages, the production site will reach 30 GWh per year by 2028.
