Victorian energy storage designer and manufacturer PowerPlus Energy has secured AU$2.3 million (US$1.65 million) in funding from the Australian Renewable Energy Agency (ARENA).
The funding was provided under ARENA’s Battery Breakthrough Initiative (BBI) and will support a three-fold expansion of PowerPlus Energy’s battery module manufacturing capacity.
The grant forms part of an AU$6.7 million project to semi-automate local manufacture of battery modules for current and future products, while also providing toll manufacturing capacity for other Australian battery businesses.
PowerPlus Energy, founded in 2017 and headquartered in Melbourne, describes itself as “Australia’s largest local manufacturer of battery modules for stationary storage”.
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Under the project, PowerPlus Energy will scale manufacturing capacity to produce up to 150MWh of battery modules annually over the next two years.
The expansion is intended to support growth in sectors including agriculture, utilities, and eco-resorts, where the company’s ability to design and manufacture for local conditions is a competitive advantage.
“As Australia’s largest battery pack manufacturer, this grant will help us maintain our position at the forefront of the local industry by enabling us to accelerate further investment in our manufacturing and testing capabilities,” said Ben Spincer, PowerPlus Energy executive chairman.
“This investment is not just about our facility in Melbourne, but also about the thousands of customers across the country, ensuring we can continue to supply Australian-manufactured, accredited and supported products in a market increasingly dominated by low-cost imports.”
ARENA CEO Darren Miller said scaling local battery manufacturing capability is critical to Australia’s clean energy transition.
“Battery manufacturing is a key part of Australia’s energy transition and economic future,” Miller said.
“This project supports an established Australian manufacturer to grow, innovate and compete, while delivering flow on benefits across the local supply chain.”
Battery Breakthrough Initiative funding landscape
The Battery Breakthrough Initiative, launched in August 2025, is one of the Australian government’s most substantial federal investments in battery manufacturing capability to date.
The AU$500 million programme, managed by ARENA in collaboration with the Department of Industry, Science and Resources, aims to position Australia as a player in global battery manufacturing by addressing critical gaps in domestic capability and scale.
The initiative forms a pillar of the Albanese government’s National Battery Strategy and the broader Future Made in Australia agenda, an AU$22.7 billion programme focused on reindustrialising Australia with emphasis on clean energy technologies, including batteries, solar PV, electric vehicles (EVs) and hydrogen.
ARENA provides funding through mechanisms tailored to project needs, including capital grants for infrastructure development and production incentives to support ongoing operations.
The programme establishes a streamlined approval pathway for projects seeking AU$50 million or less, allowing them to receive direct approval from the ARENA Board.
PowerPlus Energy joins Australian companies that have secured ARENA funding to scale new energy storage technologies.
In recent months, MGA Thermal secured AU$3.25 million for thermal energy storage front-end engineering and design studies through ARENA’s Powering the Regions: Industrial Transformation Stream, while Australian startup Relectrify received funding via the agency’s Advancing Renewables Program for its inverterless battery storage technology.
The BBI focuses on three strategic segments of the battery value chain where Australia possesses competitive advantages or critical capability gaps: battery materials manufacturing, battery cell production and battery pack assembly.
For battery pack assembly, the initiative facilitates the development of operations serving both domestic and export markets across stationary storage applications.
PowerPlus Energy said the project is supported by local suppliers, reinforcing the company’s commitment to Australian product supply chains.
The company operates a manufacturing facility in Melbourne and supplies battery storage systems across residential, commercial and industrial applications.
Interested in Australia? Read Energy-Storage.news’ Energy Storage Summit Australia coverage and related content.
