The Albanese government has opened consultations into developing Australia's first National Battery Strategy.
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The plan will help kickstart a local battery manufacturing industry and support the decarbonisation of the national economy as more renewables come online.
Minister for Industry and Science Ed Husic is opening the consultation period at a visit to a lithium-ion battery plant Energy Renaissance in the Hunter Valley on Friday.
Mr Husic said the strategy would "be integral" to hit emissions targets, and support innovation and industry.
It comes as the Australian Energy Market Operator modelled the need for 640 gigawatt hours of firming capacity by 2050, with 16GWh from utility-scale batteries and pumped hydro storage.
The ACT has a 250-megawatt Big Canberra Battery plan to help it reach its emissions targets of 65 to 75 per cent by 2030.
Mr Husic said industry would be buoyed by Australia's access to the critical minerals needed to manufacture the batteries.
"We know there is huge demand for energy storage to support the widespread uptake of solar generation by households, business and industry," Mr Husic said.
"Our general approach should be one where if we mine it here, we should make it here."
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At the moment, China holds the largest market share of battery production, particularly for electric vehicles.
The federal government has promised it will work closely with states and territories, and consult industries, communities and experts on the strategy.
The strategy includes establishing a manufacturing precinct in partnership with the Queensland government.
It also includes establishing a Powering Australia Industry Growth Centre to support research and jobs, with the aim of creating 10,000 apprentices.
The battery plan will also work alongside new strategies in national electric vehicles and critical minerals.
A domestic battery strategy would also help develop local research, servicing, and recycling opportunities, with global demand forecast to accelerate tenfold in the next decade.
An Australian-made batteries discussions paper showed the industry could create 34,700 jobs and add $7.4 billion into the economy.
"That's why it is important that we harness the opportunity to become a key player in battery manufacturing and export on the world stage," Mr Husic said.
"Australia has globally significant deposits of essential battery materials and strong local innovation and research capabilities."
