Australia is unlikely to have a comparative advantage in exporting locally made batteries according to the Productivity Commission’s latest report, as it warns against adopting the “old-school protectionism” growing across the world.
In the 49th edition of the Trade and Assistance Review, the Productivity Commission (PC) argued that “a domestic [critical mineral] processing capacity is unlikely to create an appreciable cost advantage for a domestic battery industry”.
It argues this because processed and refined critical minerals can be transported overseas at low-cost compared to batteries and compared to ores, which take up substantially more volume.
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