Calls for Australia to reintroduce vehicle manufacturing industry

A new report is pushing for the Federal Government to do more to encourage an Australian electric car industry.

Dr Mark Dean from The Centre for Future Work, an initiative from think tank The Australia Institute, says the global shift to electric vehicles presents a significant opportunity for Australia to position itself as a leader in electric vehicle (EV) manufacturing.

In the paper, titled Rebuilding Vehicle Manufacturing in Australia: Industrial Opportunities in an Electrified Future, Dean argues Australia is a prime candidate for an EV industry, thanks to a highly-skilled workforce, advanced industrial base, and rich mineral reserves required for batteries.

“But what it lacks is an overarching, coordinating and strategic national industry policy [for electric cars]" – which he argues could also lead the sustainable transformation of Australia’s economy.

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Large-scale Australian passenger car production ended in 2017.

Among the recommendations laid out, the paper calls for an EV manufacturing industry commission, with a view to develop a framework for Australian-based carmakers within 18 months.

Tax incentives could also be utilised to encourage buyers to purchase battery-powered vehicles, the report says, as well as providing motivation for global car companies to set up operations locally.

Large-scale passenger car manufacturing ended in Australia when Holden's local production lines came to halt in 2017 – around a week after Toyota, and a year after Ford.

Meanwhile, Australian company Tritium was praised by US President Joe Biden this week for announcing a new electric vehicle charger factory in Tennessee, with 500 jobs set to be added to the American state.

The new factory is expected to bolster production from its Australian plant.

"The new manufacturing facility Tritium announced today is more than just great news for Tennessee. Yes, it's going to create more than 500 good-paying jobs in Tennessee, but it can deliver greater dignity and little more breathing room to workers and their families," Biden said.

"Tritium’s new facility is going to produce up to 30,000 of these chargers every year. They’ll use American parts, American iron, American steel. And they’ll be installed up and down the highways and corridors in our communities all across the country."

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Australian electric truck manufacturer, SEA Electric.

While the Australian Government announced its Future Fuels and Vehicles Strategy in November 2021, with $178 million dedicated to hydrogen and EV infrastructure, this week also saw the Labor-led Senate Economics References Committee release a report on its inquiry into Australia’s manufacturing industry.

In the 142-page report, electric and autonomous vehicles were cited as possible avenues for Australian manufacturing, with a number of recommendations pointing to financial incentives to help nurture a local manufacturing industry.