Prime Minister says EVs could be made in Australia

Australian Prime Minister Anthony Albanese has called for a revival of the local car manufacturing industry, specifically targeting electric vehicles (EVs). Speaking at a News Corp event during Australia Made Week in Melbourne on May 18, Albanese said there is ‘no reason why we can’t make [electric] vehicles’ in Australia, following the closure of Holden’s operations in late 2017 and Toyota’s exit shortly after. The end of local car production impacted automakers and hundreds of supply chain businesses. Albanese noted that while full vehicle manufacturing may not be immediately viable, Australia could produce EV parts and components, including batteries. He highlighted new technology as a key factor, arguing that labor costs are less critical than transport costs in modern manufacturing. Several Australian companies remain active in automotive-related sectors, such as PWR (cooling technology), Redarc (vehicle integration systems), ARB (off-road equipment), and Lovells (suspension systems). Melbourne-based Applied EV produces autonomous EV ‘skateboards’ but has partnered with Suzuki for production. Meanwhile, Carbon Revolution, a wheel manufacturer, collapsed in March 2026 due to high manufacturing costs and canceled contracts. Albanese acknowledged that Australia’s decline in manufacturing was partly due to global competition, with production shifting to China and Asia. He stressed the need to leverage domestic capacity, citing the U.S. as another country that reduced local manufacturing. Dr Jens Goennemann, managing director of Australia’s Advanced Manufacturing Growth Centre (AMGC), supported the PM’s stance, emphasizing the need for globally competitive finished vehicles. The push for EV manufacturing aligns with rising demand, as seen with BYD’s recent shipment of nearly 5,000 EVs and plug-in hybrids (PHEVs) to Australia to meet local demand. Albanese’s remarks suggest a strategic shift toward modernizing Australia’s automotive industry with a focus on electric and hybrid technologies.