Bad economic arguments often come with a “tell” – a hand-waving catchphrase, inserted in place of reason or evidence as a means of coaxing agreement. Appeals for industrial subsidies are notorious for this.
I get it. Batteries are indeed part of a supply chain. That is, they are made from other, intermediate goods, as other goods are made from them. You will find that is true of a great many things, if you look. Eventually, however, the money ran out. Fed up with paying blackmail, the government of Australia refused to deliver any more. Sure enough, the industry left:
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