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Auto Tech Outlook | Monday, June 27, 2022
New report suggests that Australia has a ‘once in a lifetime opportunity to carve out spots in the global automotive supply chain.
FREMONT, CA: According to a recent analysis, Australia's car industry might be revived in an "environmentally and socially revolutionary" approach by utilizing its abundant mineral resources to produce electric vehicles. A report by the Australia Institute's Carmichael Centre, titled Rebuilding Vehicle Manufacturing in Australia, lays out the proposal for a new electric vehicle manufacturing sector.
According to the analysis, The industry has a strong foundation to begin its revival; 34,258 people still work in vehicle manufacturing, making components for global supply chains, and portions of the old auto factories remain intact. Even if Australia is unable to restore the sector to the point where it can build an electric car from the ground up, the paper claims that expanding into a segment of the global automotive supply chain such as batteries would be beneficial.
Australia is already increasing its production of lithium and other essential minerals required for the development of batteries and other electronic infrastructure that is likely to support the worldwide zero-emissions transition. Spodumene – crushed raw lithium – was worth USD1.1 billion in 2017, but refining it into precursor materials and then creating batteries could generate a USD22.1 billion industry.
An increase in the Australian dollar was caused by the mining boom, as well as political opposition, Australia's domestic automotive manufacturing closed in 2017. The report's lead author noted that while a new EV industry would not be a "panacea" for Australia's lack of climate change ambition, it would make the transition simpler by distributing the advantages. According to the study, a commission composed of members from the government and the business should be formed to plan out how a new industry may be developed. It also suggests that any new sector be fueled by renewable energy, that clear incentives be put in place to encourage adoption, such as fuel economy regulations, and that big car firms be courted.