Can Australia Charge Ahead in the Battery Boom?

Covalent, Wyloo, and Vecco push Australia toward clean-energy leadership

27 Oct 2025

Australia’s battery-minerals industry is entering a decisive phase, propelled by fresh investment, strategic partnerships, and public policy support aimed at building a complete supply chain. Long defined by its role as a major exporter of raw materials, the country is now seeking to move higher up the value chain in the global energy transition.

Recent ventures signal a shift from extraction to manufacturing. Wyloo’s collaboration with Hastings Technology Metals to develop the Yangibana rare-earths project in Western Australia underscores that change. The project, which will supply materials essential for electric motors and wind turbines, strengthens Australia’s standing as a reliable producer outside China’s dominant market. Analysts say the pivot reflects a growing commitment to domestic refining and value-added production.

Covalent Lithium, a joint venture between Wesfarmers and Chilean miner SQM, plans to begin producing battery-grade lithium hydroxide at its Kwinana refinery in July 2025. The milestone would establish Australia as a credible supplier to global automakers and battery manufacturers. “It’s a pivotal moment,” said Sarah Whitfield, an energy analyst at Clean Tech Insights. “Australia isn’t just exporting minerals anymore; it’s shaping the future of clean energy supply.”

In Queensland, Vecco Group is advancing an integrated vanadium operation linking its Julia Creek mine to an electrolyte facility in Townsville. The project targets the fast-growing market for grid-scale batteries, vital for balancing renewable energy systems. Supported by federal incentives and the national critical minerals strategy, such efforts are seen as cornerstones of a more resilient industrial base.

The sector still faces obstacles, including high capital costs and infrastructure constraints. Yet industry observers remain confident that investment momentum will continue.

Australia’s transformation marks more than a shift in industrial focus. By moving from raw exports toward processing and technology, the country is positioning itself as a key player in the clean energy economy, one whose influence could help shape supply chains for years to come.