One of the more fanciful of a grab bag of fanciful bullshit surrounding the ‘debate’ on electric cars a fortnight ago was the assertion that South Australia could become a world centre of electric vehicle manufacturing.
It seems superficially logical, all those car assembly and supplier plants sitting idle, and all those manufacturing skills being wasted as the former employees become unemployed baristas. However the entry barriers to successful manufacturing and export, and infrastructure requirements for domestic market penetration beyond central suburban areas, are significant.
GM in the US is quietly packing its bags on EV development and manufacturing to shore up profits, particularly in the light of the halving of federal Green House Gas ( GHG ) subsidies. The Californian ZEV credits scheme to encourage electric vehicles, which contributed greatly to the initial research momentum may not be enough by itself to maintain the momentum. Tesla, the poster boy of electric vehicles is walking a financial tightrope, despite its undoubted success in the market.
Labor appears to have done a bit of homework, if reports are correct, so perhaps there is hope. However, it seems to me the core of electric vehicles, where Australia has some level of competitive ability that can be protected and leveraged is the R&D solving the storage problems, subsequent battery production, and lithium mining and processing.
Lithium, the base of current battery technology is not easily available. However, Australia has considerable Lithium resources, well behind Chile and China, but carrying more sovereign certainty despite the regulatory and political hurdles.
Let’s hope the flights of oratorical fancy yet to come in this election campaign are founded on fact and solid strategic thinking, rather than what sounds good in front of a populist audience.
Anyone for a debate on Adani? (some facts and consistency of argument would be nice)
I agree absolutely that we have been poorly served by Industry policy, and the supporting policy infrastructure, such as technical and trades education. Unfortunately I see nothing changing in the largess being bundled out at the moment as they buy votes.
I will read the links, thanks.
I think the Mini-Moke was the last best example of Aussie car building expertise. That wouldnt make the grade now. I can see it now – every Australian will have their own electric Bajaj (using Adani Coal-to-the-Grid).
Oh here we go again, promoting Australia as a resource miner, rather than looking strategically at the opportunity for high value add manufacturing. We never seem to learn from the success of smarter and more strategic economies.
Angus, Your comment is a little ambiguous. Yes mining is a part of it, but should be seen as an enabler, a key part of the supply chain for Lithium batteries rather than an end in itself.
Successful advanced manufacturing is always now built up in some sort of ‘eco-system’. While the term has become a cliche, it is for good reason. Our efforts should go into the R&D and battery manufacture, which is where the long term value resides, Control of a raw material makes the chain just a little more controllable..
I believe absolutely in the need for sophisticated manufacturing aimed at specific niches where Australia and individual firms have a defensible and leveragable competitive advantage. We potentially have it in batteries, I doubt if we will have it in vehicles, where scale still counts, and probably will for the long term.
Thank you for your feedback. The ‘white paper’s sourced from the following links explores manufacturing opportunities in Australia in more detail https://www.leisuresolutions.com.au/wp-content/uploads/2015/02/MotM-Auto-updated-online_2016.pdf and https://www.leisuresolutions.com.au/wp-content/uploads/2015/02/MotM-Future-Mfg-updated-online_2016.pdf
In short, Australian industry policy over many decades has not developed structures and pathways aimed at creating industries on the back of our mineral resource advantages.
Angus M Robinson, founding member of ‘Manufacturing on the Move’