In the race to transition to renewable energy, one of the biggest challenges has been storing surplus electricity for later use. While lithium-ion batteries have dominated the spotlight, a lesser-known technology called flow batteries is rapidly emerging as a game-changer for long-duration energy storage. And according to experts, Australia is uniquely positioned to become a world leader in this field – if it can overcome some critical funding hurdles.
The Future of Energy Storage
Unlike conventional batteries that store energy in metal electrodes, flow batteries store energy in liquid electrolyte solutions that are pumped through a reactor to generate electricity. This unique design gives flow batteries several key advantages:
- Longer discharge times – Flow batteries can release energy for up to 12 hours, compared to just 4-6 hours for lithium-ion.
- Flexible capacity – By increasing the volume of electrolyte, flow batteries can easily scale storage without adding new hardware.
- Lower cost at scale – For applications requiring 8+ hours of storage, flow batteries are currently the cheapest option per kWh.
- Longer lifespan – Flow battery electrolytes can last decades without major degradation.
These benefits make flow batteries an attractive solution for long-duration energy storage – a crucial piece of the puzzle as electricity grids integrate more solar and wind power. With the right investments, many believe flow batteries could eliminate the need for fossil-fuel backup plants and accelerate the shift to 100% renewable energy.
Australia’s Battery Opportunity
Australia is already a major global producer of minerals like lithium used in conventional batteries. But it also boasts some of the largest reserves of vanadium and zinc – two metals that are key ingredients in leading flow battery designs. Experts say this, combined with Australia’s booming renewable energy sector, gives it a unique opportunity to build a domestic flow battery industry from the ground up.
“Within a decade, Australia could become a globally competitive battery maker and exporter of critical minerals. Doing so would help the shift to clean energy, both domestically and around the world.”
– Maria Skyllas-Kazacos, Professor Emeritus at University of New South Wales
Skyllas-Kazacos would know – in the 1980s, she was part of the team that invented vanadium redox flow batteries at the University of New South Wales. Those batteries are now being commercially produced by companies in China, Japan, and Europe, with several gigawatt-hours worth of capacity installed globally. Australia installed its first megawatt-scale system in 2023.
The Funding Challenge
But while the potential is enormous, Australia still faces obstacles in building out its flow battery capabilities. Chief among them is a lack of dedicated government funding and policy support for the sector.
The Australian government’s new $500 million National Battery Strategy will provide some assistance, but it is primarily focused on lithium-ion batteries for electric vehicles. Flow battery proponents argue that more targeted investments are needed, particularly in raw material processing, electrolyte production, and automated manufacturing facilities.
“Despite different chemistries, flow batteries share many common components that could be made locally and boost energy self-sufficiency… Within a decade, Australia could become a globally competitive battery maker and exporter of critical minerals.”
– Maria Skyllas-Kazacos
There are promising signs that the industry is starting to organize and advocate for itself. In 2023, Australia’s first vanadium electrolyte factory opened in Townsville. Startups like Melbourne-based Blix Power are working on low-cost zinc bromine flow cells. And Queensland’s ESI Asia Pacific is building a new factory to produce iron flow batteries initially developed in the US.
Still, these efforts will need to be rapidly scaled up in the coming years for Australia to secure a top spot in the booming global energy storage market, which Bloomberg NEF expects to attract over $620 billion in investment by 2040. China is already racing ahead, bringing the world’s largest vanadium battery online in 2023.
The Power of Policy
Ultimately, experts say, Australia’s success in flow batteries will depend on whether policymakers can be convinced to go all-in on the technology. Clear government backing in the form of subsidies, grants, and domestic usage mandates could give the industry the kick-start it needs to become globally competitive.
And the benefits would extend far beyond just the battery sector itself. By positioning Australia at the forefront of this emerging industry, it could attract billions in capital investment, create thousands of new jobs in mining and manufacturing, and accelerate the nation’s transition to a renewably-powered future.
“Creating a larger Australian battery industry will take time and funding. But the demand for batteries will expand globally in coming years, across the electricity and transport sectors… Australia could also manufacture lithium batteries for domestic use or export. To compete globally, we would need to embrace automation.”
– Maria Skyllas-Kazacos
The stakes are high, but so are the potential rewards. As the world races to cut carbon emissions and combat climate change, Australia has a narrow window to establish itself as a renewable energy superpower. By betting big on flow batteries, it may just secure the linchpin technology needed to complete its transition. But it will require a bold commitment from both industry and government to turn that vision into reality.
