Rowan Ramsey (Grey, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Industry, Science and Technology. I ask the minister if he could please update the House on how the Morrison government's Modern Manufacturing Strategy is driving low-emissions technology and creating jobs?

Christian Porter (Pearce, Liberal Party) Share this | Link to this | Hansard source

I thank the member for his question and for his great support, and continued support, of manufacturing in his very, very large electorate. Even during COVID, with the challenges that have been faced by Australian manufacturing, exports and profitability of Australian manufacturing have demonstrated the resilience of the sector and the future contribution that the sector can make to clean energy in Australia and, indeed, the world.

Through the first phase of COVID, in the March quarter 2021, manufacturing profits rose by 6.8 per cent and were 16 per cent higher over the year—a remarkable achievement given what those industries have endured during that first phase of COVID. In fact, manufacturing gross operating profits were up $38 billion in the year to March 2021, which represented 8½ per cent of the total profits across all Australian industries, which is again a remarkable result. And the monthly exports of manufactured goods increased in June 2021 in the most recent figures, up $0.8 billion, or 8.3 per cent, on May 2021. So this sector is showing remarkable resilience. That's why the Morrison government is continuing to focus its support on areas inside manufacturing of comparative advantage and strategic importance under our $1.5 billion Modern Manufacturing Strategy. And what we are seeking to do is to apply the skills and the technology of these extremely successful and profitable businesses to problems like emissions reductions, that we've been speaking about today, and prioritising sectors that can help in that regard such as recycling and clean energy and resources technology and critical minerals.

Looking at some of the very successful projects in recent grants rounds, Australian Vanadium, a Western Australian company, is going to use $3.9 million in funding to fast-track manufacturing of large-scale vanadium redox flow battery systems that can be used to support entire residential power grids as well as off-grid settings such as in mining or agriculture or remote communities. Then, in the Northern Territory we've seen Core Lithium. They'll be using a $6 million grant in funding to help build a pilot processing facility for the production of battery-grade lithium hydroxide at Darwin Harbour's Middle Arm Industrial Precinct. These projects are being supported by the Morrison government. They will enable that technology to move forward, and that will drive emissions down.

Another fine example is in round 2 of the Modern Manufacturing Fund. Sun Cable will receive $1 million. Sun Cable is an Australian founded, world-leading renewable energy company that is developing the world's largest solar farm here in Australia. This grant will further support Sun Cable's project to establish a solar array manufacturing facility in Darwin. These are real-life, real-time examples of the types of technologies that can get emissions down, leveraging off these fantastic successful, profitable manufacturing businesses that have been so resilient during the first phase of COVID.