Australia’s vehicle industry may be resurrected to build EVs

Labor may offer key manufacturers millions of dollars to build electric and hydrogen vehicles in Australia.

That’s under a yet-to-be unveiled Labor plan, which could include offering research and development grants from a $1 billion fund, the ABC reports.

The ABC says it has learned Labor has been working on the plan for the past couple of years, with US executives visiting Australia to discuss “co-investment” options.

Labor wants half of all new car sales to be electric vehicles (EVs) by 2030 and advocates building them in Australia, probably in refurbished vehicle factories in South Australia and Victoria.

Holden closed its Adelaide plant and Toyota its Altona plant in Victoria in October 2017, while Ford ceased production at its Geelong and Broadmeadows plants in October 2016.

Labor leader Bill Shorten has hinted at a car industry renaissance, saying he wants Australia to be a “manufacturing nation” and to use its lithium resources to create an Australian battery industry.

Thousands of skilled people can be redeployed for a resurgent Australia vehicle industry, Labor industry spokesman Kim Carr says.

Ford employs 2100 people in its design, research and development divisions, while Holden GM has announced expansion of its engineering and design workforce to 500 and Toyota has 160 working in hydrogen technology, the ABC says.

Firms active in the Australian automotive sector include Bosch, Unidrive, Nissan Casting, Carbon Revolution, MHG Plastics and Seeing Machines, which is working with Holden on autonomous vehicles in Canberra.

Queensland’s ACE Electric Vehicles is building a $40,000 two-door electric van pitched at small businesses and companies, aiming to have 100 built this year in its Brisbane factory.

About 65 firms are registered with the Automotive Transformation Scheme, which will distribute $1 billion between 2016 and 2020 to motor vehicle producers and component manufacturers who invest in research and development and innovation.