This move comes as carmakers and utilities seek out alternatives to the industry's dominant producer. The factory is set to be located in Geelong in southeastern Australia, with construction set to begin in the second half of this year, and production beginning by late 2024, according to founder David A. Collard.
The factory will have an initial annual capacity of 2 gigawatt-hours, with plans to eventually increase to a total of 30 gigawatt-hours. The company has already secured sales agreements with Indian energy storage projects, according to Collard.
"Australia is the new Saudi Arabia of the new energy age," said Collard. "We have all the key critical minerals to power the next 100 years."
Australia is the world's largest supplier of lithium, a critical battery metal, though currently sends most its battery raw materials to be processed into components in China. According to BloombergNEF data, Australia currently has about 1,000 gigawatt-hours of cell manufacturing capacity, more than 80 percent of the world's total.
Recharge's batteries will not use cobalt or nickel and will also avoid any materials from Russia. The company plans to source its lithium raw materials from Australian and South American mines and to utilize refined lithium from Australia and the US.
Collard raised funding for Recharge through his hedge fund, Scale Facilitation, and backers include Australian superannuation funds, asset managers, and strategic investors involved in the project.
Source: Bloomberg
