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Melbourne-based battery manufacturer PowerPlus Energy has secured a $2.3 million grant from the Australian Renewable Energy Agency (ARENA) to semi-automate its battery module production line, in a project aimed at tripling annual manufacturing capacity to 150 megawatt hours over the next two years.
The grant was awarded under ARENA's Battery Breakthrough Initiative, part of the federal government's Future Made in Australia policy agenda.
It forms part of a broader $6.7 million project to upgrade PowerPlus Energy's Melbourne facility.
PowerPlus Energy is a subsidiary of ASX-listed technology investor PPK Group (ASX: PPK), which holds a 75.4 per cent interest in the business.
PPK Group first acquired a controlling 51 per cent stake in PowerPlus Energy for $1.8 million in May 2023, with a fixed-price pathway to 75 per cent built into the deal. The company announced its increased holding to the market in February this year.
PowerPlus Energy executive chairman Ben Spincer says the ARENA funding will help the company defend its position against cheaper overseas competitors.
“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," says Spincer.
"We are delighted that the team at ARENA has recognised both our ambitions and our unique market position in supporting this investment.
"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.”
PowerPlus Energy manufactures lithium battery systems for commercial and industrial energy storage applications.
At the time of PPK Group's initial investment in 2023, PowerPlus Energy employed about 80 staff and was delivering more than 50 megawatt hours of battery storage annually, with ambitions at the time to reach 200 megawatt hours within 12 months.
ARENA CEO Darren Miller says the grant aligns with the agency's focus on building domestic manufacturing capability across the energy transition supply chain.
"Battery manufacturing is a key part of Australia's energy transition and economic future," says Miller.
“This project supports an established Australian manufacturer to grow, innovate and compete, while delivering flow on benefits across the local supply chain.”
PPK Group, led by executive director Glenn Molloy and chaired by Anne-Marie Birkill, has positioned its majority ownership of PowerPlus Energy as a core pillar of its portfolio.
When the initial acquisition was announced in 2023, then-chair Robin Levinson set an ambition to grow PowerPlus Energy's revenue to $100 million within three years.
PowerPlus posted revenue of $23.1 million in FY25, down 16 per cent from FY24,
PPK Group also has a 40 per cent stake in lithium sulfur batteries innovator Li-S Energy (ASX:LIS) which in November last year was awarded a $7.8 million grant under the ARENA Advanced Renewables Program.
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