Clutch lands ARENA backing to drive battery manufacturing project

Melbourne-based Clutch Industries has secured $6.77 million (USD 4.76 million) in funding through the Australian Renewable Energy Agency (ARENA) to establish and operate a pilot manufacturing line for a portable 4 kWh battery pack built on solid-state battery architecture.

The $19.35 million project will focus on Clutch’s PowerNet – a modular 4 kWh battery pack the company said can operate independently or be combined with multiple units to create a home battery system. Units can also be detached and used as portable power sources.

“PowerNet is about rethinking how batteries are used, creating a modular, high-performance energy platform that can power everything from homes and off-grid systems to vehicles and marine applications,” the company said.

“This funding is an important step in turning that vision into reality.”

The project will see Clutch – through its new battery division Density – design, construct and commission a scalable manufacturing line at its facility in Coburg. The line will assemble pre-conditioned solid-state battery cells into complete PowerNet systems incorporating battery management, power electronics, mechanical protection and integrated energy interfaces.

The project will also test the batteries’ safety and performance across different uses, helping refine the product and meet the requirements needed to bring it to a wider market. 

Clutch, which has been engineering and manufacturing clutch systems since 1951, said most lithium-ion batteries contain a flammable liquid electrolyte inside each cell. The company said the cells in its batteries are without free-flowing liquid, providing increased safety and power while reducing weight.

Clutch said the project will help it move from product development into scalable Australian manufacturing and will support real-world validation and future commercial uptake of solid-state architecture that offers energy density up to 50% higher than conventional lithium-ion technology.

“As the world embraces electrification, we see enormous opportunities to apply our engineering and manufacturing experience to new technologies and markets,” the company said.

ARENA Chief Executive Officer Darren Miller said the project, funded through the federal government’s Battery Breakthrough Initiative, is an opportunity to turn promising battery technology into Australian manufacturing capability.

“A battery that can support a household and then be taken on the road shows how flexible and innovative energy storage technology is becoming,” he said.

“Projects like this can build Australian manufacturing skills and give locally developed energy technologies the opportunity to demonstrate their value at commercial scale.”

Clutch said it expects PowerNet will launch in early 2027.

Australian Energy Minister Chris Bowen said the project will support the growth of the advanced battery manufacturing capability in Australia. 

“More Australians are choosing batteries to make the most of their solar and cut their power bills. We want Australian manufacturers and workers to share in that opportunity,” he said.

“This project is about making batteries here that people can use in their everyday lives, whether that’s storing energy at home or taking power with them on a camping trip, or their workplace.”