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Report Title Submission to the Senate Inquiry into Electric Vehicles Department of Industry, Innovation and Science submission August 2018 Document title goes here industry.gov.au 1 Contents Contents ............................................................................................................................... 2 About the department............................................................................................................ 3 Executive summary ............................................................................................................... 3 Introduction ........................................................................................................................... 4 Electric vehicle manufacture and opportunities for Australian businesses ............................. 4 Australia’s automotive supply chain manufacturers ........................................................ 5 GM Holden, Toyota Australia and Ford Australia research into electric vehicles ............ 8 Measures to support electric vehicle manufacturing and supply/value chain activities......... 11 Existing assistance measures and their scope ................................................................ 11 Collaboration with state governments and other stakeholders ............................................. 16 Senate Select Committee Inquiry on Electric Vehicles industry.gov.au 2 About the department The Department of Industry, Innovation and Science (the department) facilitates the growth and productivity of globally competitive industries. It also supports the building of a strong scientific capability, business innovation and the commercialisation of new ideas as critical requirements for productivity and economic growth. The department works closely with industry, businesses, the science and resources communities, Innovation and Science Australia, Australia’s Chief Scientist and other stakeholders to help build a globally confident and outward looking Australian economy through supporting science and commercialisation; growing business investment and improving business capability; and simplifying doing business. The department also works across governments to open up resources and other export markets, and support economic development in northern Australia. Executive summary There are opportunities for competitive Australian businesses in producing automotive components and services in the supply chains of the global automotive manufacturers. Some Australian businesses already supply these markets with highly innovative systems and components. These include batteries, fast charging systems, battery cooling technologies, lightweight high performance materials such as carbon fibre, and vehicle body components using lightweight materials. More Australian businesses could supply these emerging markets by drawing on our excellent R&D capabilities. The Australian Government has a range of programs that build business capabilities in many aspects of Australian manufacturing and services. These programs can help businesses to participate in the global supply chains of multinational car makers manufacturing EVs. The programs include the: $100 million Advanced Manufacturing Fund; Automotive Transformation Scheme; Entrepreneurs’ Programme; Industry Growth Centres Initiative; Cooperative Research Centres (CRC) program; R&D Tax Incentive; and CSIRO. The department is experienced in working with other Commonwealth portfolios and agencies, state governments and industry for the benefit of industry. For example, the Commonwealth Department of Jobs and Small Business, Department of Employment, and Department of Education and Training and the Department of Industry, Innovation and Science collaborated with the South Australian and Victorian state governments, Holden and Toyota in developing and delivering the Government’s $155 million Growth Fund. The Fund supported automotive workers in their transition to other careers and supply chain businesses to diversity and invest in new activities. Senate Select Committee Inquiry on Electric Vehicles industry.gov.au 3 Introduction The department welcomes the opportunity to provide a submission to the Senate Select Committee on Electric Vehicles (the Committee) Inquiry into the use and manufacture of EVs in Australia. The department notes the Committee has the following terms of reference: a. the potential economic, environmental and social benefits of widespread electric vehicle uptake in Australia; b. opportunities for electric vehicle manufacturing and electric vehicle supply and value chain services in Australia, and related economic benefits; c. measures to support the acceleration of electric vehicle uptake; d. measures to attract electric vehicle manufacturing and electric vehicle supply and value chain manufacturing to Australia; e. how federal, state and territory Governments could work together to support electric vehicle uptake and manufacturing, supply, and value chain activities; and f. any other related matters. The department’s submission will address terms b, d (where appropriate) and e. Electric vehicle manufacture and opportunities for Australian businesses Australian component manufacturers are well placed to supply innovative systems and components to the global supply chains of EV manufacturers. Their capabilities make them readily able to manufacture components for all types of vehicles, whether passenger vehicles, buses, trucks or off-road vehicles. Major global car manufactures are refocusing their production around EVs. These include: Ford, Toyota, GM, VW, Fiat-Chrysler, PSA, Renault-Nissan, Mahindra, Honda, Hyundai-Kia and Mazda producing vehicles priced within reach of most people. Manufacturers of prestige vehicles are BMW, Mercedes-Benz, Tesla and Geely-Volvo. This move to EV production is underpinned by extensive R&D, advanced design and engineering programs and facilities to supply the market with vehicles that have appeal, function and performance at a competitive price. Senate Select Committee Inquiry on Electric Vehicles industry.gov.au 4 As an example, suppliers to the production of an EV are shown in the figure below1. Australia’s automotive supply chain manufacturers Australian car component manufacturers are already exploiting opportunities with their recognised expertise in, for example, batteries, fast charging systems, battery cooling technologies, lightweight high performance materials such as carbon fibre, and vehicle body components using lightweight materials. Some examples of Australian car component manufacturers are: Nissan Casting Australia Pty Ltd, in Victoria, produces components for the power train of the Nissan Leaf EV and also the water jacket, inverter case and stator housing for the Note and Serena e-Power hybrid models sold in the Japanese market. Its strategic relationship with the Renault-Nissan-Mitsubishi Alliance, provides it with competitive access to the group’s global supply chain. The automated Dandenong plant employs 192 highly skilled workers. It runs three shifts a day, seven days a week, making 2.6 million die-cast aluminium parts and over 16,000 tow bars with an export value of $83 million. Nissan Casting has committed over $11 million of investment to the plant recently which includes specific tooling and equipment for 1 Suppliers to the 2013 Tesla Model S, http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjMnJ_v1bncAhXHdN4KHbZABlkQjRx6BAgBEA U&url=http%3A%2F%2Fparsplus.co%2Ftesla-electric-car-diagram.html&psig=AOvVaw1ZppjMbsIVKaQgDvNiHayv&ust=1532588066310789 Senate Select Committee Inquiry on Electric Vehicles industry.gov.au 5 new generation hybrid and EV components. The investment was supported by grants from the Commonwealth and Victorian governments.2 Carbon Revolution, located in Victoria, produces light weight, carbon fibre wheels. Its operations are currently based on low-volume, high price, to supply foreign high performance sports car markets. Tritium, located in Brisbane, manufactures a light-weight, fast, high-powered 475 kW EVs charging system that is typically 50 to 75 per cent smaller than other systems on the market. The system can charge a typical EV in 5 minutes, providing a range of 150 kilometres. Tritium’s markets are in Europe and US. The initial order of 600 second-generation charging systems will be deployed at 100 sites across Europe. Tritium’s 50 kW chargers are already deployed in Europe. The NRMA is installing 40 of the 50 kW chargers across NSW. In 2012, Tritium received a $1.5 million in an Early Stage Commercialisation Grant from Commercialisation Australia, a Commonwealth Government entity. 3 Quickstep, located at Bankstown in NSW and Geelong in Victoria, manufactures advanced composite materials components for applications in aerospace, defence and automotive. The complex light-weight, high-performance components require state-of-the-art design and engineering capabilities together with process development. Quickstep has developed a low cost carbon fibre composite fender for the European automotive market. Cohda Wireless, a software company in South Australia, has developed a V2X (that is vehicle-to-infrastructure and vehicle-to-vehicle) technology with 360 degree awareness. Cohda’s technology can detect hidden-from-view threats, so it can extend the horizon of awareness beyond what the driver can see. Cohda provides complete hardware/software solutions to car makers, smart cities and mine operators. PWR, in Queensland, produces
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