---
title: Are batteries the sleeping giant we should be talking about?
description: Green hydrogen sounds wonderful, but it’s not here yet. Battery technology is, and we’re not making the most of it. FBICRC CEO Shannon O'Rourke explains why.
image: https://blog.energy-insights.com.au/hubfs/shutterstock_431894077%20(1).jpg
---
[](https://blog.energy-insights.com.au/)
Clarity and leadership for Australia’s evolving energy system
%201.svg "cancel (1) 1")
[Content Title](https://blog.energy-insights.com.au/are-batteries-the-sleeping-giant-we-should-be-talking-about#)
Description
### INSIGHTS
- [Policy & Regulation (129)](https://blog.energy-insights.com.au/tag/policy-regulation)
- [Generation & Storage (124)](https://blog.energy-insights.com.au/tag/generation-storage)
- [Transmission & Distribution (84)](https://blog.energy-insights.com.au/tag/transmission-distribution)
- [Retail (63)](https://blog.energy-insights.com.au/tag/retail)
- [Gas (54)](https://blog.energy-insights.com.au/tag/gas)
- [Hydrogen (35)](https://blog.energy-insights.com.au/tag/hydrogen)
- [Industry News (7)](https://blog.energy-insights.com.au/tag/industry-news)
- [Sponsored Content (7)](https://blog.energy-insights.com.au/tag/sponsored-content)
- [Contributed article (1)](https://blog.energy-insights.com.au/tag/contributed-article)
### FILTER BY
- Articles
- Podcasts
- Video
### FOLLOW US
- [** ](https://www.linkedin.com/company/australian-energy-week)
- [** ](https://www.facebook.com/questeventsaustralia)
## A living network of curious minds.
We’re an open platform where over 100 million readers come to find insightful and dynamic thinking. Here, expert and undiscovered voices alike dive into the heart of any topic and bring new ideas to the surface.
[](https://cta-redirect.hubspot.com/cta/redirect/4473860/5bf281dd-038e-437d-b011-d72c84bf0d2d)
LOAD MORE
### Energy Monthly
.png?width=46&height=35&name=Group%20(2).png)
Learn all about something in next to no time with our monthly braindump.
## Events
##### September 9, 2026 | Ritz Carlton | Perth
### Energy in Western Australia Conference 2026
##### October 13, 2026 | Sydney Masonic Centre (SMC) | Australia
### Industrial Net Zero Conference 2026
##### October 13, 2026 | Pullman Hyde Park, Sydney
### Women in Energy & Renewables Summit 2026
##### February 23, 2027 | MCG, Melbourne, Australia
### Climate Investor Forum 2027
[](https://cta-redirect.hubspot.com/cta/redirect/4473860/207994e8-2653-462a-9577-db0848f20eb5)
[](https://cta-redirect.hubspot.com/cta/redirect/4473860/7b2bbbca-7683-40dd-8de3-a06c778dc6e3)
[](https://cta-redirect.hubspot.com/cta/redirect/4473860/5bf281dd-038e-437d-b011-d72c84bf0d2d)
.png)
### Insights you want. Data you need.
Learn all about something in next to no time with our weekly braindump.
All rights reserved Energy Insights Pty Ltd
### INSIGHTS
- [Policy & Regulation (129)](https://blog.energy-insights.com.au/tag/policy-regulation)
- [Generation & Storage (124)](https://blog.energy-insights.com.au/tag/generation-storage)
- [Transmission & Distribution (84)](https://blog.energy-insights.com.au/tag/transmission-distribution)
- [Retail (63)](https://blog.energy-insights.com.au/tag/retail)
- [Gas (54)](https://blog.energy-insights.com.au/tag/gas)
- [Hydrogen (35)](https://blog.energy-insights.com.au/tag/hydrogen)
- [Industry News (7)](https://blog.energy-insights.com.au/tag/industry-news)
- [Sponsored Content (7)](https://blog.energy-insights.com.au/tag/sponsored-content)
- [Contributed article (1)](https://blog.energy-insights.com.au/tag/contributed-article)
### FILTER BY
- Articles
- Podcasts
- Video
### FOLLOW US
- [** ](https://www.linkedin.com/company/australian-energy-week)
- [** ](https://www.facebook.com/questeventsaustralia)
[Generation & Storage](https://blog.energy-insights.com.au/tag/generation-storage) — 6 mins read
# Are batteries the sleeping giant we should be talking about?
The hype around green hydrogen is understandable. A wealth of renewable opportunity opens up if we get it right. However, does the focus on hydrogen mean we’re failing to exploit the full potential of battery technology?
According to the *Future Charge: Building Australia’s Battery Industries* report, diversified battery industries could contribute $7.4 billion every year to the Australian economy. This would support 34,700 jobs by 2030.*
We spoke to Shannon O'Rourke, the CEO of the Future Battery Industries Cooperative Research Centre (FBICRC), which commissioned the 2021 report, about the extraordinary economic opportunity right under our noses.
‘Global players are benefiting from the development of a battery industry being built off the back of Australian resources, and we deserve to take a greater economic share of this burgeoning industry,’ he said.
### Current state of battery play
While Australia punches above its weight on a per capita basis, there’s plenty of competition.
Shannon rates Japan as the clear leader in battery innovation, overtaking South Korea. China dominates battery manufacture midstream, with China and US as the world’s largest energy consumers.
‘We are world leading in mining, mineral processing, and have strong capability in chemical and process engineering,' he said.
"We also have experience in grid, micro-grid applications and are world leaders in remote stand-alone power.’
According to the FBICRC, Australia could double its economic gains by diversifying and developing capability in advanced materials, cell manufacturing and automated module manufacturing. This would build a minimum capability across the entire chain.
As Shannon said, Australia has half the market share for critical battery minerals. Despite our abundance of finite resources, we only capture 0.5% of the total value of these minerals.
‘Time is running out for Australia to stake its claim and play a leading role.’
### From Hornsdale big battery to now
Tesla’s battery plant in South Australia was the world’s largest lithium ion battery when commissioned in 2017, with its 100MW/129MWh capacity.*
The volume weighted average price for the pack and cell was (originally) US$226/kWh. In 2021, the cost has roughly halved to US$132/kWh.*
‘Battery technology continues to evolve, especially at utility scale. Pumped hydro, sodium sulphur and vanadium flow compete with lithium in the utility battery space,' Shannon said.
'Novel flow batteries, like ESS Iron Flow Battery and Zinc-Air systems have potential to reduce costs even further.’
Shannon views the proposed Eraring 700MW/2800MWh battery in NSW – more than four times the size of Hornsdale – as arguably the most exciting development to replace retiring coal-fired generators.*
### Can hydrogen and batteries co-exist?
Hydrogen and batteries are complementary, rather than competing technologies, he said. ‘Hydrogen fuel cells are just a type of battery. What hydrogen does well is large capacity storage and heat, but that comes at a high cost,' he said.
‘Because hydrogen is inefficient to produce and transport, the best way to think about hydrogen is as an ultrapremium fuel that you want to conserve. Batteries are used together with hydrogen to help conserve that fuel.
‘In most applications, direct electrification will be better than introducing hydrogen into the mix.’
It’s horses for courses. Hydrogen is useful in heavy industry, agriculture and petrochemicals. Yet ‘huge diversity’ in batteries offers greater efficiency and flexibility.
‘For example, lightweight, high-power density NCM batteries are ideal for high performance electric vehicles. Whereas low density, iron flow batteries are better suited to long duration storage. Lead acid and zinc-bromine gel batteries are most suitable for back-up applications.’
### New battery technology ahead
What’s around the corner?
- Solid state batteries with improved safety and performance. VW and QuantumScape aim for 2024 release.*
- Lithium sulfur batteries with 50% improvement over advanced NCM batteries. Commercial application some way off.
- Home batteries advancing, with availability of Encharge 10 (Enphase)*, ZBM3 flow battery (Redflow)* and V40 flow battery (UltraEnergy)*.
- Vehicle to grid (V2G) technology can power your home with an EV. But not cost-effective yet.
*Balance and drive are essential, Shannon said.
‘An ideal energy mix will have a lot of high-capacity factor renewables (like hydro, geothermal, wind, concentrated solar thermal), together with short and long-duration battery storage delivering safe, reliable and affordable energy to the grid.
‘By the end of this decade, the industry will have substantial capacity and will have consolidated. If Australia wants a sovereign capability that is relevant today, we need to build a battery industry for Australia.’
Sources:
* [https://fbicrc.com.au/wp-content/uploads/2021/06/Future-Charge-Report-Final.pdf](https://fbicrc.com.au/wp-content/uploads/2021/06/Future-Charge-Report-Final.pdf)
* [https://reneweconomy.com.au/tesla-big-battery-in-south-australia-delivers-stunning-windfall-profits-77644/](https://reneweconomy.com.au/tesla-big-battery-in-south-australia-delivers-stunning-windfall-profits-77644/)
* [https://about.bnef.com/blog/battery-pack-prices-fall-to-an-average-of-132-kwh-but-rising-commodity-prices-start-to-bite/](https://about.bnef.com/blog/battery-pack-prices-fall-to-an-average-of-132-kwh-but-rising-commodity-prices-start-to-bite/)
* [https://cleantechnica.com/2021/01/12/new-south-wales-will-host-new-700-mw-2800-mwh-battery-storage-installation/](https://cleantechnica.com/2021/01/12/new-south-wales-will-host-new-700-mw-2800-mwh-battery-storage-installation/)
* [https://www.saftbatteries.com/media-resources/our-stories/three-battery-technologies-could-power-future](https://www.saftbatteries.com/media-resources/our-stories/three-battery-technologies-could-power-future)
* [https://enphase.com/sites/default/files/2021-04/Encharge-10-DS-EN-US.pdf](https://enphase.com/sites/default/files/2021-04/Encharge-10-DS-EN-US.pdf)
* [https://redflow.com/zbm3-battery](https://redflow.com/zbm3-battery)
* [https://www.ultraenergy.com.au/](https://www.ultraenergy.com.au/)
* [https://arena.gov.au/assets/2021/01/revs-the-a-to-z-of-v2g.pdf](https://arena.gov.au/assets/2021/01/revs-the-a-to-z-of-v2g.pdf)
##### Wendy Riley, Energy Insights
### SHARE:
- [**](https://www.twitter.com/share?url=https%3A%2F%2Fblog.energy-insights.com.au%2Fare-batteries-the-sleeping-giant-we-should-be-talking-about)
- [**](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.energy-insights.com.au/are-batteries-the-sleeping-giant-we-should-be-talking-about)
- [**](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fblog.energy-insights.com.au%2Fare-batteries-the-sleeping-giant-we-should-be-talking-about)
### Energy Monthly
.png?width=46&height=35&name=Group%20(2).png)
Get a different perspective on energy with our monthly newsletter.
[](https://cta-redirect.hubspot.com/cta/redirect/4473860/8fa069bd-fdcf-4fa3-ad35-d4f44fdf3795)
##### September 9, 2026 | Ritz Carlton | Perth
#### Energy in Western Australia Conference 2026
##### October 13, 2026 | Sydney Masonic Centre (SMC) | Australia
#### Industrial Net Zero Conference 2026
##### October 13, 2026 | Pullman Hyde Park, Sydney
#### Women in Energy & Renewables Summit 2026
##### February 23, 2027 | MCG, Melbourne, Australia
#### Climate Investor Forum 2027
### Up next
[Industry News](https://blog.energy-insights.com.au/tag/industry-news), [Generation & Storage](https://blog.energy-insights.com.au/tag/generation-storage), [Policy & Regulation](https://blog.energy-insights.com.au/tag/policy-regulation) — 14 mins read
### [Eight themes reshaping Australia’s energy transition](https://blog.energy-insights.com.au/eight-themes-reshaping-australias-energy-transition)
[Learn More](https://blog.energy-insights.com.au/eight-themes-reshaping-australias-energy-transition)
### [Ending the capex arms race: Making networks solely accountable for what they forecast and deliver](https://blog.energy-insights.com.au/ending-the-capex-arms-race-making-networks-solely-accountable-for-what-they-forecast-and-deliver)
[Learn More](https://blog.energy-insights.com.au/ending-the-capex-arms-race-making-networks-solely-accountable-for-what-they-forecast-and-deliver)
[Generation & Storage](https://blog.energy-insights.com.au/tag/generation-storage), [Policy & Regulation](https://blog.energy-insights.com.au/tag/policy-regulation) — 14 mins read
### [Financing the transition: Why certainty matters more than capital](https://blog.energy-insights.com.au/financing-the-transition-why-certainty-matters-more-than-capital)
[Learn More](https://blog.energy-insights.com.au/financing-the-transition-why-certainty-matters-more-than-capital)
[](https://cta-redirect.hubspot.com/cta/redirect/4473860/7848ae8e-026a-4a56-8de0-1853936568f0)
.png)
### Creating clarity during the energy transition.
Get a different perspective on energy with our monthly newsletter.
All rights reserved Energy Insights Pty Ltd
```json
{
"@context" : "https://schema.org",
"@type" : "BlogPosting",
"author" : {
"@type" : "Person",
"name" : "Wendy Riley, Energy Insights",
"url" : "https://blog.energy-insights.com.au/author/wendy-riley-energy-insights"
},
"dateModified" : "2022-09-02T00:30:06.401Z",
"datePublished" : "2022-03-31T00:05:32.000Z",
"headline" : "Are batteries the sleeping giant we should be talking about?",
"image" : [ "https://blog.energy-insights.com.au/hubfs/shutterstock_431894077%20(1).jpg" ],
"mainEntityOfPage" : {
"@id" : "https://blog.energy-insights.com.au/are-batteries-the-sleeping-giant-we-should-be-talking-about",
"@type" : "WebPage"
},
"publisher" : {
"@type" : "Organization",
"logo" : {
"@type" : "ImageObject",
"url" : "https://blog.energy-insights.com.au/hubfs/Quest%20Logo.jpg"
},
"name" : "Quest Events Pty Ltd"
}
}
```