An energy industry expert believes excitement over hydrogen has overshadowed a bigger investment opportunity that many ASX shares are involved in.
Shannon O'Rourke is the former general manager of new energy at Woodside Petroleum Limited (ASX: WPL). He is also the founder of the company's hydrogen, carbon, and carbon capture and storage businesses. He believes the traditional battery sector provides more benefits that other emerging energy sources.
O'Rourke became the CEO of the Future Battery Industries Cooperative Research Centre (FBICRC) in December after more than 25 years in the energy sector.
Let's take a look at the energy technology that he believes Australia should invest in for the future.
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Battery technology a better opportunity than hydrogen: O'Rourke
As an energy industry veteran, O'Rourke has seen plenty of "hydrogen hype" – a trend that many ASX shares have leaned into. But he's looking to convince policymakers to invest in battery technology research.
O'Rourke told The Australian that "hydrogen has a place… but, ultimately the opportunity is much bigger and much real for batteries."
"[Australia has a] huge strength in minerals," he continued. "It should be incumbent on us to turn that into a strength in mineral processing and materials."
FBICRC is reportedly pushing for a $750 million stand-alone Australian Battery Institute (ABI) to be included in the upcoming Federal budget.
It argues an ABI would ensure Australia's battery industry could help keep costs of domestic energy storage technology low.
Currently, Australia's battery industry adds $1.3 billion to the economy. It holds a 50% market share in critical ores and demand for domestic storage products is growing. Yet, most of its trade is with China, as the nation controls 90% of the world's battery chemicals market.
FBICRC argues Australia could create said chemicals, as well as advanced materials, cells, and modules for global value chains.
Commenting on FBICRC's Towards 2030 – Australia's Battery Powered Future strategy released on Monday, O'Rourke said:
Put simply, Australia has a choice.
We can continue our traditional focus on the mining and export of raw battery materials and accept the lost opportunity of value add for Australia.
Alternatively, we can shift our mindset, invest with purpose and adopt courageous and visionary policy settings. These measures have the potential to unlock a significant economic prize of $7.4 billion annually and more than 34,000 jobs by 2030.
Which ASX shares are involved in battery technology?
There are plenty of ASX shares involved in the battery technology industry.
Perhaps the most iconic ASX battery share is Novonix Ltd (ASX: NVX). The company is involved in graphite exploration and mining, battery technology, and battery materials.
Additionally, Ecograf Ltd (ASX: EGR) is a vertically integrated creator of battery anode material.
Finally, ASX newbie, Li-S Energy Ltd (ASX: LIS) has created a new battery technology based on lithium sulphur chemistry.
