Illawarra-based battery technology company Sicona Battery Technologies has secured a $45 million grant from the Australian Renewable Energy Agency (ARENA) to build its first commercial-scale silicon-carbon anode manufacturing facility at Port Kembla, as part of a $100 million project that will scale production by300-fold to 230 tonnes per annum.
The grant, delivered under the federal government's Battery Breakthrough Initiative as part of its Future Made in Australia agenda, will fund construction of the facility which is expected to create up to 36 skilled manufacturing jobs.
Sicona's proprietary SiCx anode material is designed to replace conventional graphite in lithium-ion batteries, boosting energy density by more than 20 per cent and charging speeds by more than 40 per cent.
The technology has drawn high-profile attention from industry figures including Drew Baglino, former Tesla chief technology officer, who has described silicon as the "magic pixie dust" of next-generation battery chemistry.
“ARENA’s support is a major endorsement of Sicona’s technology, our team, and Australia’s ability to build globally relevant battery materials manufacturing capability," says Sicona Battery Technologies founder and CEO Christiaan Jordaan.
“Battery-powered industries need higher performance at lower cost. Our silicon-carbon anode technology is designed to deliver faster charging, greater energy density and a scalable pathway into existing lithium-ion battery supply chains.
“While EVs remain a major opportunity, some of the fastest-growing demand is coming from AI data centres, robotics, drones and power tools. These applications need high energy and power density today, and SiCx is designed to help meet that demand."
Jordaan says the Wollongong facility will allow the company to validate its process at commercial scale, delivering SiCx to customers and accelerating its entry to multiple markets.
“It also shows Australia can do more than export unprocessed critical minerals. We can manufacture advanced materials, create skilled jobs, and compete in the high-value battery supply chains that will power the global energy transition,” he says.
The ARENA funding comes a little more than a year after Sicona struck a licensing and strategic partnership with Indian specialty chemicals group Himadri, which included an $17.5 million follow-on investment.
The funding also marks a major validation point for Sicona as it moves from technology development into commercial scale-up, with its materials also being developed for applications across AI data centres, power tools, defence, robotics, and other high-performance battery markets in addition to electric vehicles.
The capital injection will help Sicona meet its ambition to build sovereign battery materials manufacturing capability in Australia, while proving the country can compete in higher-value global battery supply chains.
The Port Kembla facility represents a nearer-term milestone, with the company also planning a 6,500-tonne-per-annum commercial plant and eyeing longer-term expansion potential to 26,500 tonnes per annum.
ARENA CEO Darren Miller says the agency is backing Sicona's commercial potential and its role in the net-zero transition.
“Sicona is developing the kind of next-generation battery technology that can help Australia move further up the global battery supply chain," says Miller.
“Improving battery performance is critical to accelerating the uptake of electric vehicles and supporting the transition to a net zero economy.
“Sicona’s technology has the potential to deliver faster charging, longer driving range and lower-cost batteries. The technology has undergone independent testing and is already being evaluated by global battery manufacturers and electric vehicle companies, highlighting its strong commercial potential.
“By supporting Sicona’s Wollongong facility, ARENA is helping build the domestic manufacturing capability Australia needs to turn battery innovation into commercial supply.”
The Battery Breakthrough Initiative, through which the grant was awarded, had its total funding envelope revised down to $142 million in the 2026 Federal Budget.
The choice of Port Kembla aligns with a broader transformation of the steelmaking precinct.
BlueScope Steel's Port Kembla Land Transformation project recently reached a historic rezoning milestone, with 200 hectares of former industrial land rezoned to support advanced manufacturing, renewable energy and technology sectors.
The rezoning has been described as a game-changer for the Illawarra, with the potential to deliver up to 20,000 additional jobs across the precinct.
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