Australian battery technology company Sicona Battery Technologies has secured $45 million in funding from the Australian Renewable Energy Agency (ARENA) to develop its first commercial-scale silicon-carbon battery anode material production facility in the Illawarra region.
The proposed facility is expected to be located within BlueScope Steel’s Port Kembla precinct, with Sicona and BlueScope entering an exclusivity agreement to assess the development opportunity.
The project will scale production of Sicona’s SiCx® silicon-carbon anode material to up to 230 tonnes per year, supporting advanced customer qualification programs and early commercial sales.
Sicona says its silicon-carbon material can improve lithium-ion battery performance by increasing energy density by more than 20 per cent and enabling charging speeds more than 40 per cent faster than conventional graphite anodes.
The company said the material is compatible with existing lithium-ion battery production lines, potentially making it easier for battery manufacturers to introduce the technology without major changes to established manufacturing processes.
The ARENA funding is being delivered through the Federal Government’s Battery Breakthrough Initiative, which is focused on building domestic battery manufacturing capability and strengthening Australia’s role in global battery supply chains.
Sicona Founder and CEO Christiaan Jordaan said the grant represented a major step in the company’s transition from technology development to commercial-scale production.
“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,” Jordaan said.
“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 electric vehicles remain a major focus, Sicona is also targeting demand from AI data centres, robotics, drones, defence, power tools and other high-performance battery applications.
“Some of the fastest-growing demand is coming from AI data centres, robotics, drones and power tools,” Jordaan said.
“These applications need high energy and power density today, and SiCx® is designed to help meet that demand. The Wollongong facility will allow us to validate our process at commercial scale, deliver SiCx® to customers, and accelerate our entry to multiple markets.”
ARENA CEO Darren Miller said the funding would help turn Australian battery innovation into commercial manufacturing capability.
“Sicona is developing the kind of next-generation battery technology that can help Australia move further up the global battery supply chain,” Miller said.
“Improving battery performance is critical to accelerating the uptake of electric vehicles and supporting the transition to a net zero economy.”
Miller said Sicona’s technology could support faster charging, longer driving range and lower-cost batteries, with the company’s material already undergoing independent testing and evaluation by global battery manufacturers and electric vehicle companies.
The Wollongong facility is expected to create up to 36 skilled manufacturing jobs and support workforce development, training and local industry partnerships.
The announcement follows Sicona’s May 2025 licensing and strategic partnership with India-based Himadri, including a further $17.5 million investment. The company is also planning a larger 6,500-tonne-per-year commercial facility, with longer-term potential to expand production to 26,500 tonnes per year.
For Australia’s EV industry, the project highlights the opportunity to move beyond exporting raw critical minerals and towards producing higher-value battery materials locally. While the Wollongong facility will initially operate at a relatively modest scale, it could provide an important pathway for Australian-made anode materials to enter global EV battery supply chains.
