Local Battery Manufacturing Program: Production Scale-Up Stream

Purpose and Program Overview

The WA Local Battery Manufacturing Program: Production Scale-Up Stream is a competitive grant initiative designed to strengthen Western Australia’s battery manufacturing sector by supporting existing manufacturers to expand their operations. This program provides matched funding of up to $5 million per application to enhance local manufacturing capability, improve competitiveness, and create jobs within the battery energy storage supply chain.

The Production Scale-Up stream forms part of the broader $50 million Local Battery Manufacturing Program announced by the Cook Labour Government, which includes $30 million for grants across two streams and $20 million for low-interest loans to be launched later. The Production Scale-Up Stream specifically targets established battery manufacturers seeking to scale their operations, with an indicative funding pool of $25 million allocated for this stream.

The program supports Western Australia’s strategic transition to renewable energy by building local manufacturing capacity for residential, industrial, and commercial battery applications. This initiative responds to increased demand driven by the state’s Residential Battery Scheme, which has seen over 4,500 household batteries installed since July 2025, with approximately 100,000 households expected to benefit from combined state and federal schemes.

Key Grant Details

• Grant amount: Up to $5 million per application on a matched funding basis 
• Application dates: Open until 20 March 2026 at 5:00 PM AWST 
• Eligible entities: Existing battery manufacturers operating within the battery energy storage supply chain 
• Co-contribution: 50% matched funding required (grant covers up to 50% of eligible project costs) 
• Location applicability: Western Australia – businesses must demonstrate physical presence in WA 

Priority Sectors

The grant specifically targets businesses operating within the battery energy storage supply chain. This includes:

• Battery cell manufacturing and assembly 
• Battery component production for residential, industrial, and commercial applications 
• Battery recycling operations 
• Battery pack and system assembly 

Funding Scope

• Maximum funding: $5 million per application 
• Funding coverage: Grants cover up to 50% of eligible project costs 
• Total funding pool: $25 million, indicative allocation for this stream 
• Program duration: The stream will run until the end of FY29, subject to fund availability 

Eligibility Criteria

Businesses must meet these key requirements to qualify for funding:

• Business operations: Must have been operating for at least 12 months or provide evidence of market acceptance (e.g., offtake agreements) 
• Business structure: Must be a for-profit entity or an incorporated not-for-profit Aboriginal Corporation operating as a commercial enterprise 
• Ownership: Must have a minimum 50% Australian ownership 
• Registration: Must have an ABN and be registered for GST for a minimum of 12 months 
• Financial status: Must be solvent and remain so throughout the project duration 
• Location: Must provide evidence of physical business presence in Western Australia, though headquarters may be located outside WA 

Eligible Activities and Expenses

Eligible Projects and Expenditures

• Purchase of capital equipment for battery manufacturing operations 
• Workforce training for operating new equipment and manufacturing processes 
• Costs associated with upgrading existing or new premises to support manufacturing scale-up 
• Engaging business or manufacturing expertise, including feasibility studies, market diversification, and efficiency improvements 

Program Objectives

• Enhancing the capability and capacity to manufacture batteries 
• Improving competitiveness and market share 
• Creating diversification across the manufacturing supply chain 
• Lowering commercial risk and uncertainty associated with manufacturing activities 
• Creating jobs in Western Australia 

Assessment Process

The grant is competitive, with applications assessed by an internal evaluation panel comprising at least three members from the Department.

Applications are evaluated against these weighted criteria :

• Alignment with program purpose and stream objectives (20%) – Assessment of how well the project supports battery manufacturing scale-up and supply chain development
• Strength of proposal (30%) – Evaluation of project viability, methodology, and implementation planning
• Value for money (25%) – Analysis of project costs versus expected benefits and outcomes
• Relevant experience and expertise (25%) – Assessment of the applicant’s track record and capability to deliver the project

The evaluation panel scores applications independently, then holds consensus meetings to determine funding recommendations. Final decisions rest with the Minister for State Development, Trade and Investment, and Economic Diversification or their delegate.

Recent Program Updates

The Local Battery Manufacturing Program was launched in November 2025 as a key initiative under the Cook Labour Government’s Made in WA Plan. The program represents a comprehensive approach to developing WA’s battery manufacturing sector, with the Production Scale-Up Stream being one of two currently available grant opportunities.

The broader program will be complemented by a $20 million low-interest loan component scheduled to launch in early 2026. This initiative aligns with the state’s commitment to phase out coal by 2030 and transition to renewable energy, with household batteries playing a critical role in achieving a stable, renewable-powered grid.

Application Tips

• Review eligibility thoroughly: Ensure your business meets all eligibility requirements before applying, particularly regarding Australian ownership percentage, operating history, and GST registration 
• Focus on strategic alignment: Clearly demonstrate how your project enhances battery manufacturing capability, creates jobs, and contributes to WA’s supply chain development 
• Prepare detailed documentation: Have all required documents ready, including financial statements, project plans, and evidence of physical presence in WA 
• Submit through proper channels: Applications must be lodged exclusively via the SmartyGrants portal – no email or postal submissions accepted 
• Highlight WA benefits: Emphasize how your project contributes to local job creation, economic diversification, and the state’s renewable energy goals 
• Demonstrate project readiness: Show evidence of market acceptance, such as offtake agreements, if your business has been operating for less than 12 months 

Where to Get Help

Consider consulting a grant specialist for a personalised eligibility assessment and expert assistance in preparing a strong, compliant and competitive application. Contact Pattens Group today, and we will connect you with Australia’s best grant specialist, boasting over 35 years of experience in the industry and a 100% success rate. For official guidelines, application details, templates, and further information, visit the official website of WA Local Battery Manufacturing Program and other associated Australian government websites.