The Hon. Chris Bowen MP, Minister for Climate Change and Energy
Senator The Hon. Tim Ayres, Minister for Industry and Innovation, Minister for Science
The Hon. Kate Thwaites MP, Special Envoy for Climate Change Adaptation and Resilience
The Albanese Government is backing Aussie-made innovation to make batteries last longer, cost less, and power more of our clean-energy future.
Announced today in West Melbourne by Special Envoy Thwaites, the Government, through the Australian Renewable Energy Agency (ARENA) is investing $25 million in Melbourne-based company Relectrify to fast-track the roll-out of its world-first battery energy storage system, the AC1.
Unlike conventional batteries, the AC1 can generate grid-ready AC power directly from battery cells, without the need for an inverter, cutting costs, reducing battery degradation and helping deliver more reliable, affordable energy.
This breakthrough battery technology has the potential to transform energy storage - supporting the transition to a more flexible, low emissions grid.
Throughout the AC1 battery's lifetime, it is projected to deliver 20% more energy compared to standard batteries, resulting in greater investment returns for battery owners and helping to lower costs across the grid.
Relectrify will deploy up to 100 MWh of AC1 systems in the commercial, industrial and small front-of-meter markets. These deployments will build real-world operating experience, generate critical performance data and create reference sites for future customers.
The project will also include a comprehensive knowledge-sharing program to spread lessons across the energy sector and support work to integrate renewables and strengthen grid stability.
This project builds on ARENA's previous support for Relectrify in second-life EV battery applications and positions Relectrify to further develop its battery technology.
Relectrify has also been awarded $2.9 million in matched funding through the Australian Government's Industry Growth Program to significantly enhance and develop its market-proven cell-level control technology, CellSwitch, to be ready for use in heavy duty e-mobility applications such as electric trucks, buses and mining vehicles.
The Industry Growth Program is aligned with the seven government priority areas for the $15 billion National Reconstruction Fund, which includes Resources, Renewables and Low Emission Technologies, and Enabling Capabilities.
Quotes attributable to Minister for Climate Change and Energy, Chris Bowen:
"Home-grown battery innovation like this keeps Australia at the cutting edge of clean-energy technology and helps drive down costs for consumers.
"Through ARENA, we're backing Australian companies that take ideas from the lab to the market - building jobs, capability and global leadership in renewable energy.
"As demand for batteries soars, projects like Relectrify's ensure more of that technology is designed, built and deployed right here in Australia, powering a Future Made in Australia."
Quotes attributable to Minister for Industry and Innovation and Minister for Science, Tim Ayres:
"Australian ingenuity is driving the clean-energy industries of the future. By supporting companies like Relectrify, we're building sovereign capability and helping home-grown innovation succeed on the world stage.
"The Industry Growth Program is helping Australian businesses turn their ideas into profitable products, ensuring more things are designed and made right here in Australia.
"By backing local businesses, the Albanese Labor Government is building economic resilience, securing local jobs, and bolstering Australia's supply chains for a Future Made in Australia."
Quotes attributable to Special Envoy for Climate Change Adaptation and Resilience, Kate Thwaites:
"This project shows how local innovation can deliver national benefits - cutting emissions, supporting new industries and creating secure, sustainable jobs.
"As we adapt to a changing climate, Australian-made solutions like this help keep energy reliable and affordable for communities across the country."
Quotes attributable to Member for Melbourne, Sarah Witty:
"I am proud the Albanese Government is investing in an Australian-made solution that directly supports the clean-energy transition. The AC1 has the potential to cut emissions, lower energy costs, and create new industries, while supporting the growth of secure, sustainable jobs.
"With the backing of ARENA and the Industry Growth Program, I'm excited to see Relectrify bring this breakthrough to scale, right here in Melbourne."
