Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Industry and Science, Senator Farrell. Can the minister update the Senate on the government's plans to ensure that Australia adds value to our critical minerals like lithium, nickel, cobalt, manganese and rare earths that we mine in that fantastic part of the nation, WA, and develop a domestic battery manufacturing capability? Minister, what are the opportunities for Australia from developing a domestic industry?

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

I thank Senator Sterle for that very insightful question and his support of the mining industry generally in Western Australia, particularly in this area of critical minerals. Cabinet was up your way last week, at Port Hedland. It was the first time cabinet had ever been into that part of beautiful Western Australia.

As senators are no doubt aware, Australia is rich in a number of the critical minerals on which the renewable energy economy will be based. We're very good at extracting minerals, but we've not always been good at capturing their true value. That's what this government is trying to change, Senator Sterle.

If we look at lithium batteries, the global market for minerals will grow from a current $2 billion to $11 billion by 2035. But if we take one more step up the value chain and refine those minerals, that market grows from $2 billion to $44 billion, some 22 times larger. Then, if we take it all the way to manufacturing the battery cells, that market—listen to this, Senator Sterle—will grow from $31 billion to $387 billion.

Murray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

How many?

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

I repeat that for you, Senator Watt: that market will grow from $31 billion to $387 billion. Battery pack assembly will then grow—remember, this is the mob over here who closed down Holden—from $156 billion to $1.1 trillion. If we mine it here we should make it here.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Sterle, first supplementary.

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

I am absolutely in awe, Minister. Other than our access to critical minerals, what other advantage does Australia have when it comes to developing a domestic battery industry?

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

r FARRELL (—) (): I thank Senator Sterle for his extremely insightful question once again. The resources that Australia has been blessed with are human as well as mineral. Across Australia there are scientists, researchers and business leaders who are leading the world when it comes to battery technology. From the Future Battery Industries CRC at Curtin University to the National Battery Testing Centre at QUT, we are at the cutting edge of this technology. Modern batteries are built not just on smart chemistry but on smart technology as well, and this is a vital capacity that we must foster, and your state of Western Australia is leading the way in that regard.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Sterle, second supplementary.

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

What is the government doing to make sure that we can take advantage of these opportunities and provide jobs in our regions and in our suburbs?

Paul Scarr (Queensland, Liberal Party) Share this | Link to this | Hansard source

That's an extremely insightful question!

Don Farrell (SA, Australian Labor Party, Minister for Trade and Tourism) Share this | Link to this | Hansard source

I couldn't agree more: that is an extremely insightful question. I have an answer for you, Senator Sterle. The National Battery Strategy is our government's plan to build a battery manufacturing industry. We're not closing down industries, like they did with Holden; we're building it up. This strategy will ensure that we capture the true value of our natural resources and put our international capital to work delivering products that will be in high demand right around the world and support the global transition to net zero. If we mine it here, we should make it here, because that will deliver high-skill, high-wage jobs not only in the cities but particularly in the regions and the suburbs right around Australia.