The Australian Renewable Energy Agency (ARENA) has awarded up to $45 million in funding to Sicona Battery Technologies to establish a commercial-scale demonstration plant in the Illawarra region.
Delivered under the federal government’s Battery Breakthrough Initiative and the broader Future Made in Australia framework, the capital injection aims to scale up local clean energy supply chains and reduce reliance on offshore processing.
The Port Kembla facility will scale the production of Sicona’s proprietary silicon-carbon battery anode material, known as SiCx. The technology is designed to enhance lithium-ion battery density by over 20% and reduce electric vehicle charging times by roughly 40% compared to standard graphite anodes. Crucially, the material integrates into existing manufacturing lines without requiring factory retooling.
The project will expand production capacity at the site up to 300 times to deliver 230 tonnes per annum for commercial validation and global client testing. The manufacturing expansion is also expected to create up to 36 skilled jobs in the region.
Federal ministers stated the investment ensures domestic innovations are scaled and manufactured locally rather than exported as raw critical minerals, allowing Australia to secure a higher-value position within the rapidly expanding global battery supply chain.
