At the annual Minerals Week summit in Canberra, Australia, Tesla Chair Robyn Denholm delivered a powerful message about the critical importance of building refineries and factories in the country. Her words carried weight, as she stressed that if Australia continues to focus solely on mining key battery materials without further action, it could miss out on a monumental opportunity.
Denholm stated, "This is a trillion-dollar opportunity for Australia. It is our opportunity to lose if we fail to act quickly. The rest of the world is waking up and looking to compete fiercely with us."
Australia possesses immense potential in this sector. Mining currently forms the backbone of the Australian economy, and the country possesses all the necessary minerals and materials required for renewable energy and critical minerals. Denholm emphasized that Australia is currently positioned at the bottom of the supply chain, missing out on significant value. She asserted that the crucial next step is to build refineries domestically.
Denholm's remarks carry significant authority, given her position at Tesla, the world's leading electric vehicle manufacturer. Two years ago, she kickstarted the Minerals Council event by announcing that Tesla intended to spend AU$1.3 billion (US$831 million) annually on critical minerals from Australia. This figure has since tripled, with Tesla now planning to invest over AU$4.3 billion (US$2.8 billion) in 2023. Denholm pointed out that battery demand is surging, projected to increase from just over 375 GWh in 2023 to as high as 57 TWh by 2035.
"Demand for Australian minerals will only continue to rise," Denholm emphasized.
While the Australian federal government has expressed its commitment to transforming the country into a battery manufacturer rather than merely a primary producer of raw materials, Denholm stressed the need for alignment between governments and the industry. Instead of one-off grants, she proposed the implementation of ongoing production tax credits for refining battery minerals onshore as a more effective approach.
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