Australia Lithium-Ion Battery Market Growth Analysis - Market Size, Share, Forecast Trends and Outlook Report (2025-2034)

Key Market Trends and Insights:

• The lithium-ion battery industry in Australian Capital Territory is expected to exhibit a CAGR of 34.3% over the forecast period.
• The Western Australia lithium-ion battery market is expected to grow at a CAGR of 32.8% over the forecast period.
• By application, the automotive category is expected to register a CAGR of 34.2% over the forecast period.

Market Size and Forecast:

• Market Size in 2024: AUD 7.95 billion
• Projected Market Size in 2034: AUD 114.76 billion
• CAGR from 2025-2034: 30.60%
• Dominant Regional Market: New South Wales

One of the most defining trends in the Australia lithium-ion battery market is the aggressive pace of renewable energy transition. As of 2022, renewable sources supplied 35.9% of Australia’s total electricity, a share that continues to grow with large-scale solar and wind projects. The rapid deployment of variable renewable energy has made grid-scale lithium-ion batteries indispensable for balancing intermittent supply, an area where Australia is increasingly positioning itself as a global proving ground.

Government support adds further momentum in the Australia lithium-ion battery market. The Australian Renewable Energy Agency (ARENA) allocated AUD 176 million in funding for grid-scale battery projects in December 2022, which included projects integrating advanced inverter technologies for system strength. Meanwhile, the National Reconstruction Fund, valued at AUD 15 billion, has highlighted energy storage manufacturing as a core investment pillar, signaling intent not just to deploy but also to build sovereign capability in battery value chains. Additionally, lithium production, which is critical to downstream battery growth, remains a strength, with the country producing 52% of the world’s lithium supply in 2023.

Key Trends and Recent Developments

July 2025

Kalmar unveiled its second-generation Li-ion (Li-ion) battery solution for its line of electrically driven counterbalanced machinery, which includes forklifts, empty container handlers, and reachstackers. In a variety of operating conditions, the new battery technology offers a longer, more consistent performance curve, increased energy capacity, and improved thermal stability. This strengthens demand for high-capacity, thermally stable batteries in Australia’s logistics and industrial equipment sectors.

May 2025

To enable foreign partners to produce and rebrand their own versions of its exclusive Aeon and Eternity (LTO) energy storage systems, Australian battery firm Zenaji introduced a global licensing model. This Australia lithium-ion battery market development positions the country as an innovation hub, enabling its LTO energy storage systems to gain international adoption and commercial scale.

October 2024

With the official opening of its ground-breaking Gold Coast factory, eLumina established Australia's first plant that can produce EV chargers and community lithium batteries. This boosts domestic manufacturing of EV chargers and community lithium batteries, reducing reliance on imports while strengthening local supply chains.

May 2024

Leading global renewables company RWE announced that it has decided to invest in the construction of Australia's first eight-hour battery in the New South Wales (NSW) region, close to Balranald. RWE’s eight-hour lithium-ion BESS project in New South Wales advances Australia’s long-duration storage capabilities, ensuring greater renewable grid stability and policy-backed investment growth.

Surge in Grid-Scale Battery Projects Reshaping Renewable Energy Integration

Australia is increasingly relying on large-scale lithium-ion batteries to stabilize its renewable-heavy grid. The Waratah Super Battery in New South Wales, with a planned capacity of 850 MW, is positioned as one of the largest in the world, serving as a “shock absorber” for the grid. This Australia lithium-ion battery market trend reflects a decisive shift, making these batteries central to transmission reliability. For B2B energy firms, the opening of such projects means partnerships in engineering, component supply, and integration services, creating a demand pipeline beyond traditional power generation assets.

EV Transition Backed by Government Fleet Targets

The country’s electric vehicle adoption is accelerating under structured policy support. The National Electric Vehicle Strategy, launched in April 2023, outlines tighter fuel efficiency standards, which will directly boost EV sales. Government fleet electrification targets add immediate demand certainty, with several states, like Victoria, pledging that all new government fleet purchases will be zero-emission by 2030, accelerating the growth of the Australia lithium-ion battery market.

Industrial Decarbonization Driving Stationary Storage Demand

Beyond mobility, energy storage for industries is becoming a critical demand pillar. Heavy energy users in mining and manufacturing are increasingly relying on lithium-ion storage to offset diesel dependency. For instance, in July 2024 Rio Tinto’s Gudai-Darri iron ore mine in Western Australia integrated a 45 MW solar farm with battery storage, signaling mining’s shift towards decarbonized energy supply, opening up Australia lithium-ion battery market opportunities. Industrial adoption reflects a niche yet growing market where operational cost reduction, carbon compliance, and ESG commitments collectively drive storage uptake, extending battery demand beyond households and cars.

Consumer Electronics Market Powering Consistent Demand

While EVs and grid storage capture maximum traction, consumer electronics remain a solid demand driving for lithium-ion batteries in in the country. With smartphone penetration crossing 88% in 2023, coupled with the rising popularity of wearable technologies, lithium-ion batteries continue to find scale in portable electronics. Local startups focusing on medical devices and IoT also create fresh layers of application, widening the Australia lithium-ion battery market scope. For global B2B suppliers, the market represents a stable high-value consumer base, less vulnerable to the cyclical disruptions affecting larger industrial-scale applications.

Push for Domestic Battery Manufacturing Ecosystem

Australia is increasingly seeking to move up the value chain beyond raw lithium exports. Initiatives like the Future Battery Industries Cooperative Research Centre (FBICRC) are building pilot-scale processing and cell manufacturing capacities, backed by federal and state funding, reshaping the Australia lithium-ion battery market trends and dynamics. Western Australia, in particular, has rolled out incentives to attract battery manufacturing and assembly. For B2B firms, this means opportunities not only in supply but also in knowledge transfer, licensing, and establishing manufacturing partnerships.

Australia Lithium-Ion Battery Market Share

Automotive applications dominate the market driven by rising EV adoption

The automotive application is currently the largest contributor to lithium-ion battery demand in Australia, fueled by both private and public fleet electrification. Increasing EV imports, coupled with subsidies and charging infrastructure rollout, accelerate penetration rates. The development of dedicated gigafactories further strengthens this dominance, making automotive applications central to long-term demand visibility.

Stationary energy storage, particularly linked to renewables, is projected to witness the fastest growth in the market. Grid-scale projects in New South Wales and Victoria, coupled with industrial hybrid systems in mining operations, provide strong scale-up opportunities. Lithium-ion batteries’ flexibility and rapidly falling costs make them the technology of choice for utilities and energy-intensive businesses, ensuring demand growth at a pace surpassing automotive.

Australia Lithium-Ion Battery Market Regional Analysis

New South Wales secures the leading position in the market supported by grid-scale battery deployments.

New South Wales accounts for the largest share of the Australia lithium-ion battery market, driven by massive grid-scale deployments like the Waratah Super Battery project. With Sydney also being a hub for EV adoption and state-backed energy transition programs, the region provides a stable demand base for both stationary and automotive battery applications.

Western Australia is emerging as the fastest-growing regional market, owing to its leadership in lithium mining and strong investment into renewable integration for mining operations. The state’s policies supporting downstream processing and pilot manufacturing projects further position the region as a critical hub for raw exports and for building midstream and downstream industries, boosting the lithium-ion battery consumption.

Competitive Landscape

The competitive landscape of the market is evolving rapidly as companies shift focus from simple supply to building integrated ecosystems around energy storage, electric mobility, and domestic manufacturing. Australia lithium-ion battery market players are prioritizing grid-scale storage projects, developing EV-ready battery packs, and expanding renewable integration capabilities. A strong emphasis is also placed on establishing local production capacity to reduce dependence on imports while leveraging Australia’s dominance in lithium mining.

Partnerships with utilities for large-scale deployments, collaborations with mining companies for decarbonization, and supplying modular storage solutions for commercial and residential sectors are some of the key opportunities for Australia lithium-ion battery companies. The growing policy support from both federal and state governments further opens avenues for localized R&D and pilot manufacturing. For companies in this space, agility in adapting technology for industrial clients and reliability in large-scale energy projects are becoming the defining factors of long-term competitiveness.

Tesla Inc.

Tesla Inc., established in 2003 and headquartered in California, United States, is a dominant name in Australia’s battery market. Its Tesla Powerwall and Powerpack units are widely used in residential and commercial storage systems. The company plays a central role in grid-scale projects, including South Australia’s Hornsdale Power Reserve, which remains one of the world’s largest lithium-ion installations.

Shenzhen MANLY Battery Co. Ltd

Shenzhen MANLY Battery Co. Ltd, founded in 2009 with headquarters in Shenzhen, China, is actively expanding its footprint in the Australian market. The company provides a broad range of lithium-ion batteries customized for telecom, industrial, and residential uses. Its approach focuses on supplying flexible energy solutions with a strong emphasis on long cycle life and safety features.

Sonnen Australia Pty Limited

Sonnen Australia Pty Limited, founded in 2010 and headquartered in Australia operates with a strong local presence in Adelaide. The company specializes in residential battery systems, particularly the SonnenBatterie series, which has become a popular choice for households integrating rooftop solar. Sonnen’s strategy is built around promoting community-based energy sharing models, enabling households to trade and store excess renewable energy.

Enery Renaissance Pty Ltd

Enery Renaissance Pty Ltd, founded in 2015 and headquartered in New South Wales, Australia, is building the country’s first Australia lithium-ion battery gigafactory known as the Renaissance One facility. Its focus is on developing safe, climate-adapted batteries specifically tailored to harsh Australian conditions. Unlike many global peers, Enery Renaissance emphasizes sovereign manufacturing capability, ensuring local jobs and supply chain resilience.

Other key players in the market are PowerPlus Energy Pty Ltd., and Century Yuasa Batteries Pty Ltd., among others.

Key Highlights of the Australia Lithium-Ion Battery Market Report:

• Analysis of large-scale grid batteries, EV-focused gigafactories, and community-based storage models.
• Profiles of key players innovating in climate-adapted batteries and heat-resistant chemistries.
• Regional demand mapping, from mining-driven Western Australia to EV adoption hubs in New South Wales.
• Investment outlook highlighting sovereign manufacturing opportunities, localized supply chain resilience, and government-backed funding programs.

Why Rely on Expert Market Research?

• Cross-sector expertise connecting energy storage, renewable power, and advanced manufacturing.
• Bespoke intelligence crafted for stakeholders targeting Australia’s fast-evolving clean energy economy.
• Multi-layer validation process combining government datasets, technology case studies, and supply chain analysis.
• Action-oriented insights helping companies navigate policy shifts, raw material pricing, and domestic value-add opportunities.

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