Australia is losing many of our promising startups like Redflow and Tritium to lack of federal government and private capital investment. It is hard for Australian startups to compete especially in high tech products, and especially with fierce international competition. And the stakes are high. The battery supply chain is projected to grow to over $400 billion globally by 2030.
Redflow was a company that specialised in the development and commercialisation of zinc-bromide flow batteries. These batteries are known for their ability to store and discharge energy efficiently, making them an attractive option for various energy storage applications. Zinc-bromide flow batteries are particularly valued for their long cycle life and deep discharge capabilities, which make them suitable for renewable energy integration, grid storage, and backup power solutions. Redflow’s technology aimed to address the growing demand for reliable, non combustable, and sustainable energy storage solutions in a world increasingly reliant on renewable energy sources.
I don’t think there is a lot of point laying blame specifically on the Redflow team with a big dream (except perhaps for a bit of Hubris).
The financial and development issues that bought down Redflow seem to be more systematic. The administrators’ report puts the reason for the company’s collapse simply: In our opinion, the failure of Redflow came from its inability to raise the necessary funding from external sources.
It is my opinion that Australia lacks a solid enough R&D culture. The international competition to Australian Innovation often gets massive government and venture capital support that is hard to come by here. Overseas battery companies invest massively compared to here. For example, the battery company BYD has 40,000 Engineers, and Catl has 18,000 engineers, including 250 PhDs. Redflow would have been lucky to have more than a dozen or two as an Australian Startup.
Investing a percentage of gross turnover in research and development (R&D) is crucial for companies aiming to stay competitive and innovative. According to data from Austrade and the Australian Bureau of Statistics (ABS), Australian businesses on average spend around 1.8-2% of their gross turnover on R&D. This is significantly lower than in countries like the US, China, Germany, or Japan, where R&D spending often exceeds 3-5% of turnover in key sectors. Allocating funds towards R&D allows businesses to explore new technologies, improve existing products, and develop new offerings that can meet changing consumer demands. By committing a portion of their financial resources to R&D, companies can foster a culture of innovation, enhance their market position, and ultimately drive long-term growth. This investment not only helps in keeping up with industry advancements but also provides a strategic advantage in creating unique solutions that differentiate a company from its competitors.
Innovation inevitably means continuous improvement with some failures.
The journey of implementing sustainable technology products involves a systematic approach known as continuous improvement. This process can be broken down into four distinct stages that guide organisations toward achieving their sustainability goals.
The first stage is Planning, where the focus is on identifying opportunities for sustainability and setting clear objectives. This involves assessing current technology practices, and determining where improvements can be made. During this phase, it’s crucial to engage stakeholders and gather data to inform strategic decisions.
Next comes the Implementation stage. Here, the plans are put into action. This might involve adopting new technologies, optimising existing systems, or introducing innovative practices that reduce environmental impact. Effective implementation requires thorough training and communication to ensure that everyone involved understands the changes and their roles in supporting them.
Following implementation is the Monitoring stage. At this point, it’s essential to track the performance of the new technologies and practices. This involves measuring outcomes against the initial objectives and using key performance indicators to evaluate success. Monitoring helps identify any areas that require adjustments and ensures that the sustainability efforts are on track.
Finally, the Optimisation stage focuses on refining and enhancing the processes. Based on the data collected during monitoring, organizations can make informed decisions to further improve their sustainable practices. This stage involves continuous feedback loops and encourages innovation to achieve even greater efficiencies and reduced environmental impact.
By moving through these four stages, organizations can effectively integrate sustainable technology products into their operations, making a significant contribution to environmental preservation while also enhancing their own operational efficiency.
While research and development are crucial for innovation and improvement, by it’s very nature the risks involved with new products or technologies might fall on the users. This lack of guarantee can be due to the experimental nature of newly developed products, where outcomes are not always predictable. Innovation requires failure, or learning what doesn’t work. Thomas Edison discovered 10,000 ways not to make a light bulb before finding one way that did work. Another example is SpaceX with the big goal of reaching Mars, and development proceeds rapidly including potential rocket failures during testing. These setbacks are crucial for learning in aerospace engineering. By examining failures, SpaceX can improve future missions’ safety and reliability. This trial-and-error process is key to technological advancement, allowing for design refinement and innovation. Despite setbacks, innovation in sustainable building technologies will be crucial in a sustainable future.
Even though Redflow has not proven durable, it is my opinion that we can be proud of them for showing leadership, roiling up their sleeves and ‘giving it a go’. Moving forward globally, battery technology globally is improving so quickly that the next generation of batteries will be a fraction of the cost and far more reliable than these first generation products.