CANBERRA (CU)_Back in 2017, Australia’s domestic car industry shuttered as a result of a high Australian dollar triggered by the mining boom. However, now amid growing demand for electric vehicles across the globe, the Pacific nation could resurrect its car industry in an environmentally transformative manner.
With Australia being rich in mineral resources required to make EVs, a new report has laid out the plan for a new electric vehicle manufacturing sector of the country. The report, published by the Australia Institute’s Carmichael Centre, is titled Rebuilding Vehicle Manufacturing in Australia. It says that the Trans-Tasman nation has a string base to restart its car manufacturing industry, given that sections of old car factories still intact and 34,258 people are already involved in the production of components for the global supply chain.
On the other hand, the country is already expanding its production of critical minerals needed to build batteries and other electronic infrastructure for EVs. The extraction of crushed raw lithium alone was worth over $1 billion back in 2017, but using it to make batteries by processing it into precursor materials is expected to be worth around $22.1 billion.
According to Dr Mark Dean, the lead author of the report, although the EV sector may not be the silver bullet for Canberra’s lack of climate ambition, it could however make the transition easier. “For decades the auto industry was the glue that held communities together. It provided security and good standards of living,” he said. “What you’ll be doing is saying to all these different people in all these different communities that by creating an electric vehicle industry-driven future, you will benefit.
Accordingly, the report recommends the setting up of a commission with government, business and union representatives to set out a plan on how a new industry can be created. It further advised the new industry to be powered by renewable energy, and clear incentives.
