Manufacturing News

Government says Tesla manufacturing plant welcome in Australia

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Minister for infrastructure Catherine King said a local Tesla manufacturing plant would be “absolutely” welcome in Australia when releasing a consultation paper for a new national electric vehicle (EV) strategy.

The consultation paper seeks views on proposed goals, objectives and actions for the National Electric Vehicle Strategy, to ensure Australians can access the best transport technologies and help meet emission reduction targets.

King’s statement indicates the Federal Government’s enthusiasm to ramp up local car manufacturing, including manufacturing EVs, and reduce emissions in Australia.

The paper stated, “Australians are being sold some of the highest emitting cars in the world.

On average, new passenger vehicles in Australia have around 20 per cent higher emissions than the United States, and around 40 per cent higher emissions than in Europe. We need to catch up to the rest of the world when it comes to transport emissions.”

The paper also notes ramping up local manufacturing as a key goal; other goals include making EVs more affordable, expanding EV uptake and choice, reducing emissions, and saving Australians money on fuel.

King’s comments come as Robyn Denholm, Tesla board chair, spoke about reviving Australia’s auto industry by manufacturing EVs.

“Australia is in a unique position because we have the minerals here that other countries don’t have,” Denholm said to the National Press Club in Canberra recently.

“The supply chains for the electric vehicle and the lithium-ion storage batteries that are key for renewable energy are being formed now.

“I do think the private sector and government need to work together. I don’t think that incentives are required because most business people will see the exponential growth that’s going to happen over the next period of time in those minerals.”

At the unveiling of the consultation paper, minister for energy Chris Bowen commented on realistic expectations of manufacturing EVs in Australia.

“The economics of electric vehicle manufacturing are very different to traditional internal combustion engines, whether it’s full vehicles or those components of vehicles along the way,” Bowen said.

“And as I said at the outset, the more we have an electric vehicle market in Australia, the more that will support electric vehicle component – and indeed, potentially more in due course – manufacturing.”

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