Grand designs: The high-risk plan to make Australian industry great again

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Manufacturing is making a comeback as the federal government reshapes and revitalises its role in the economy. But at what cost?

Add articles to your saved list and come back to them any time.Surrounded by bushland and birds on Sydney’s lower north shore, less than 10 kilometres from the city centre, sits a boxy, glass-mirrored research and manufacturing plant in the well-to-do suburb of Lane Cove.

Chalmers has argued that the current times demand a new approach, amid the global energy transition and splintering geopolitics with trade conflicts and wars. “To talk about ‘we have to bring manufacturing onshore’, or simply that we need to have more manufacturing – until you have a market and have developed products or services to address that demand, you shouldn’t even be thinking about manufacturing,” she said.

He added that the federal government needed to take a long-term perspective in its planning, which meant decades, not just a political term. “The funding process must transcend the political cycle.” One of the arguments supporting the federal government’s plan to rebuild and reshape Australia’s manufacturing base is that the nation and our economy can’t be left behind, as others – from the United States and Europe to India, China, Japan and South Korea – collectively spend trillions to incubate homegrown industries to fuel the green transition.

on $20 billion of Australian exports after political tensions between the two countries escalated under the Morrison government.Advertisement Syrah Resources chief executive Shaun Verner said the company is applying for another loan under the US government’s Inflation Reduction Act.He said the US government wanted to secure supplies of critical minerals and processing to support electric vehicle manufacturing at a rapid pace. Tesla is the largest customer of Syrah’s processing plant.

Separately, there’s the $20.5 billion allocated to the Clean Energy Financial Corporation for funding the development of new green energy grid infrastructure. And the government’s $20 billion Medical Research Future Fund. Ivan Power, a former Macquarie Group investment banker, has been tasked with leading the National Reconstruction Fund, which has seven priority investment areas. They are broadly defined as value-add in the resources sector, investment in transport manufacturing and parts, medical science, defence, renewables, agriculture and manufacturing technologies. The final sector could span robotics to quantum technologies.

 

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