Australia has spent decades building a reputation as one of the world’s leading suppliers of critical minerals. Yet for much of that time, we have captured only a fraction of the value those resources create. We have excelled at digging materials out of the ground, but too often the advanced manufacturing, intellectual property and high value jobs have been created elsewhere. That is beginning to change.
Sicona Battery Technologies has secured $45 million from the Australian Renewable Energy Agency (ARENA) to build and operate its first commercial-scale silicon-carbon battery anode material production facility in the Illawarra region. For our company, this is a major milestone as we transition from technology development into commercial manufacturing. More broadly, it represents another step towards building Australia’s advanced battery manufacturing capability and strengthening our role in global battery supply chains.
The facility will scale production of Sicona’s SiCx® silicon-carbon battery anode material, with an initial capacity of up to 230 tonnes per annum for advanced customer qualification and commercial sales. It will also help demonstrate that Australia can do more than supply the raw ingredients for the energy transition. We can manufacture the advanced materials that make higher-performance batteries possible.
Demand for better batteries has never been greater
Electric vehicles remain one of the most visible drivers of battery innovation, but they are no longer the only market pushing the boundaries of battery performance. Artificial intelligence infrastructure, data centres, robotics, drones, defence technologies, portable power equipment and advanced industrial applications are all placing increasing demands on lithium-ion batteries.
These industries require batteries that charge and discharge faster, store more energy, last longer and perform reliably under increasingly demanding operating conditions. Improving battery performance is no longer simply about extending electric vehicle driving range. It is becoming critical infrastructure for multiple industries that are reshaping the global economy.
Where silicon-carbon anode materials have an important role to play
Traditional lithium-ion batteries predominantly use graphite as the anode material. While graphite has served the industry well for many years, battery manufacturers are increasingly looking for materials that can deliver higher performance without requiring entirely new manufacturing processes.
Sicona’s SiCx® material has been designed to address that challenge
Our silicon-carbon anode technology is designed to increase battery energy density by more than 20 percent while enabling charging speeds more than 40 percent faster than conventional graphite. Just as importantly, it has been developed to integrate with existing lithium-ion battery manufacturing lines, providing battery manufacturers with a practical pathway to improving battery performance without fundamentally redesigning their production facilities.
Compatibility matters
Many breakthrough battery technologies struggle because they require manufacturers to replace existing production equipment or build entirely new manufacturing processes. Technologies that can be incorporated into existing production lines have a clearer pathway to customer qualification, commercial adoption and global scale.
That is one reason why moving from laboratory development into commercial production is such an important milestone.
The Port Kembla facility will allow us to manufacture commercial quantities of SiCx®, supply customers for qualification programs and continue building relationships with battery manufacturers and original equipment manufacturers globally. Commercial production is where innovative materials begin demonstrating that they can perform consistently, reliably and economically at industrial scale.
The importance of collaboration in building Australia’s advanced manufacturing capability
As part of the development, Sicona and BlueScope Steel Limited have entered into an exclusivity agreement to assess the potential development of the facility within BlueScope’s Port Kembla precinct. The Illawarra has a proud industrial heritage and an experienced manufacturing workforce, making it a logical location to support emerging advanced manufacturing industries.
The project is expected to create up to 72 skilled manufacturing jobs while also supporting workforce development, training opportunities and partnerships with local industry.
Importantly, this investment forms part of a broader national strategy.
The ARENA grant has been awarded through the Australian Government’s Battery Breakthrough Initiative, which aims to strengthen domestic battery manufacturing capability and help Australia participate in higher value segments of the global battery supply chain.
Australia possesses many of the minerals required to manufacture lithium-ion batteries. The opportunity now is to convert more of those resources into advanced materials and products before they leave our shores. Doing so creates more skilled jobs, develops advanced manufacturing capability and allows Australian companies to compete in global markets where innovation, rather than resource ownership alone, creates long term value.
This latest milestone also builds on momentum we have already established internationally.
In May 2025, Sicona entered a licensing and strategic partnership with Himadri in India, alongside a follow-on investment of AU$17.5 million. That partnership demonstrated growing international confidence in Australian battery technology and our ability to commercialise advanced battery materials beyond domestic markets.
Meanwhile, planning continues for our larger commercial manufacturing ambitions, including a proposed 6,500 tonne per annum facility with longer term expansion potential to 26,500 tonnes per annum.
These projects are not simply about increasing production volumes. They represent a pathway towards establishing Australia as a recognised supplier of advanced battery materials, rather than remaining primarily an exporter of unprocessed critical minerals.
Battery technology will continue evolving rapidly over the coming decade. Manufacturers will continue searching for higher performance materials that can improve charging speeds, increase energy density and reduce costs across a growing range of applications.
Australia has an opportunity to become an important contributor to that future
The combination of world class research, critical mineral resources, advanced engineering capability and growing government support provides a strong foundation for building globally competitive battery materials companies.
The ARENA grant is a significant endorsement of Sicona’s technology and our team’s work, but it is also recognition of something much larger. It reflects growing confidence that Australia can build advanced manufacturing businesses capable of competing internationally.
The Port Kembla facility is one important step on that journey. We believe it demonstrates that Australia has both the capability and the ambition to become a global leader in advanced battery materials manufacturing.
What is Sicona Battery Technologies?
Sicona Battery Technologies is an Australian battery technology company developing silicon-carbon anode materials for lithium-ion batteries.
What is SiCx®?
SiCx® is Sicona’s silicon-carbon battery anode material. It is designed to improve lithium-ion battery energy density and charging speed while remaining compatible with existing lithium-ion battery production lines.
What is Sicona building in Wollongong?
Sicona is building and operating its first commercial-scale silicon-carbon battery anode material production facility in the Illawarra region. The facility is expected to produce up to 230 tonnes of SiCx® per year.
Why does the ARENA grant matter?
The $45 million ARENA grant supports Sicona’s move from technology development into commercial-scale battery materials production. It also supports Australia’s domestic battery manufacturing capability under the Battery Breakthrough Initiative.
Which markets could use Sicona’s silicon-carbon anode material?
Sicona is developing its material for electric vehicles, AI data centres, defence, robotics, drones, power tools and other high-performance battery markets.
By Christiaan Jordaan, Founder and CEO of Sicona Battery Technologies – https://www.siconabattery.com/
Follow Christiaan Jordaan: https://www.linkedin.com/in/christiaan-jordaan-99421518/