ARENA launches battery manufacturing grant program

The Australian Renewable Energy Agency (ARENA) has opened a new funding initiative to support and grow battery manufacturing in Australia.

The $500 million Battery Breakthrough Initiative (BBI) aims to provide clean energy manufacturing opportunities for Australia’s workforce and allow Australia to leverage its expertise in battery energy storage.

ARENA CEO Darren Miller said batteries are crucial to achieving Australia’s net zero emissions goal.

“Energy storage is a critical enabling technology for our renewable energy future. We know that solar and wind energy can provide us the lowest-cost renewable energy generation at scale, but we also need to be able to store it for when it is needed,” he said. “BBI will enhance Australia’s battery manufacturing capability, improve supply chain resilience and battery manufacturing processes, and foster innovation.”

ARENA will focus on awarding funding to projects across the following areas:

• Active materials: supporting projects relating to the production of cathode materials, anode materials, and electrolytes used in electrochemical batteries.
• Battery cell manufacturing: supporting the manufacture of electrochemical battery cells and components that directly support battery cell manufacturing.
• Battery pack assembly: supporting projects related to battery pack assembly, which includes the connection of battery cells (or modules and flow battery stacks) into battery packs.
   

Central to the National Battery Strategy, the program has been designed in consultation with the Department of Industry, Science and Resources (DISR) and a broad range of stakeholders. BBI is also aligned with the Economic Resilience and Security stream of the Future Made in Australia (FMA) policy agenda.

Funding provided through BBI may include capital grants, production incentives or other payments deemed appropriate by ARENA for the project.

Program guidelines and other support documentation are now available on ARENA’s website. The submission portal will open in August 2025. Project proponents are strongly encouraged to contact ARENA before submitting an application.

For more information, including the guidelines, webinar dates and submission portal, visit the ARENA funding page.

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