The proposal involves two components:

Component 1: Battery precinct equity investment

The proposal would provide a $100 million equity investment ($50 million in 2022-23 and $50 million in 2023-24) to a successful applicant in a competitive tender for the establishment of a battery precinct. The battery precinct would see local manufacture of batteries via a larger existing manufacturer. The precinct would also become home to SMEs currently undertaking work in the sector.

Investment arrangements, including capital deployment, treatment of dividend earnings and departmental costs, would be modelled on those for the Clean Energy Finance Corporation (CEFC).

Component 2: Powering Australia Industry Growth Centre

The proposal would provide $14 million over four years ($3 million in 2022-23, $7 million in 2023-24 and $2 million in each of 2024-25 and 2025-26) for a Powering Australia Industry Growth Centre.