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Paydirt: What are the major approach – which is why creating a hub
challenges facing its establishment? is so difficult. It requires a comprehensive
understanding of regional assets, industry
KM: The major challenges in establishing gaps and challenges, and global trends.
a downstream battery material refining
and manufacturing hub is the competition Where the hub is located will have a
with countries in the northern hemisphere large bearing on how hub
who also want to locate as large a portion development needs to occur.
as possible of the supply chain in their A hub in Kalgoorlie-Boulder
respective regions so that a larger portion would be very different
of the economic benefit aggregate in the model to a hub in Kwinana.
country where the production takes place.
Contemporary battery value chains Paydirt: WA has the
are neither secure nor sustainable. unique assets of mineral
Battery mineral and material production reserves and mining skills
is monopolised by a small number of in a domestic setting. How
suppliers, which subject international advantageous will this be in
markets to both political and economic establishing a battery hub?
risks to security of supply.
Poor institutional frameworks in KM: It is extremely important, but
several supplier countries lead to on its own it is not a sufficient
many adverse basis. A similar argument
social and regarding mineral endowment
environmental can for instance be made
outcomes, for Africa. It is important to
undermining the have some manufacturing
sustainability credentials of basis, supporting infrastructure
an ostensibly “green” industry. and access to skills, training
Existing value chains are and research facilities.
not fit-for-purpose for 21st Australia produces nine of
century battery needs. the 10 mineral elements
Australia’s strong required to produce lithium-
commitment to ESG ion battery anodes and
compliance and risk cathodes and has reserves
mitigation is also a of the 10th – graphite.
two-edged sword in that we There is an opportunity
could “miss the boat” due for WA to add value to
to bureaucratic processes our mineral reserves
and low risk appetite. by moving further down the
value chain, capturing and
Paydirt: How do each retaining more of the value of
of the international hubs deal our minerals rather than simply
with different stakeholders exporting the raw materials.
(government, research organisations, This is particularly true
industry)? Is there a uniform for smaller volume, higher
approach? value raw materials, such as
lithium, cobalt, nickel and vanadium,
KM: They are all examples of how hubs where refining to chemicals makes
can be set up and successfully operate much sense, as well as manufacture of
using very different models. For example, advanced engineered materials such as
the US case study examines the Tesla cathode materials and anode materials
Gigafactory model in a remotely located and their respective precursors.
industrial park. The key stakeholders here The Future Charge report identified
(local government, industry) are different establishing battery hubs as one of its
to the Japanese case where the hub key recommendations to achieving a
examined is dispersed throughout Osaka, diversified battery industry in Australia
with research and development in Kyoto. worth $7.4 billion in value annually and
In this case, the key stakeholders are the support over 34,000 jobs by 2030.
local governments, prefectural government
(regional), industry and universities. Both the Accelerating Battery Industry
The German case is again different, Hub Development in Australia report and
where two different models of industrial the Future Charging report are available
“parks” were examined. One was a park on the Future Battery Industries CRC
with different companies working together website fbicrc.com.au
in an industry eco-system, the other was
one company comprised of separate
business units but working as an eco-
system. There is no uniform or ideal

aUSTRaLIa’S PaYDIRT NOVeMBeR 2021 Page 57