Magellan Power seeks $15 million in external investment to scale up production of its commercial energy storage systems and residential batteries while expanding operations across Western Australia and the east coast.
According to Magellan, which introduced its Karri household energy storage system earlier this year, the additional funding will help build a new 15,000 square meter headquarters and production complex in the southern Perth suburb of Hope Valley.
The business, which already produces up to 2 MWh of battery systems annually at a factory in the Bibra Lake suburb of Perth, said the new facility will enable it to increase battery recycling capabilities and manufacturing capacity for battery storage, independent power systems, and microgrids.
“We are planning to expand production, expand geographically and produce new products in multiple sectors,” Magellan Managing Director Masoud Abshar stated.
“Our current manufacturing capacity for battery storage systems is approximately 1–2 MWh per year. Our ambition is to scale this capacity to 250 MWh annually within the next five years.”
Absar said Magellan is also planning to establish manufacturing, warehousing, and service capabilities in other states. It has already opened an office in Brisbane in Queensland.
“Each state’s facility will be tailored to local demand, ranging from full-scale manufacturing hubs to distribution centers and service depots,” he said, adding that “this national footprint will allow us to better serve local markets, reduce delivery times, support regional job creation, and strengthen our ability to respond quickly to customer needs.”
Due in part to the introduction of federal and state government subsidies for house and community battery systems, Magellan’s development plans align with the growing demand for residential batteries, community storage, and grid-independent power systems across the country.
More than 7,000 battery systems were registered in Australia over the first 17 days of the $2.3 billion Cheaper Home Battery initiative, according to data from market researcher SunWiz, and that number is rising.
“The recent introduction of state and federal battery subsidies, along with genuine government commitment to local manufacturing, has been a game changer,” Abshar stated.
“The economics of mass-producing home batteries in Australia, particularly in the absence of large-scale demand and government support, made commercial viability challenging for many years.”
“These initiatives have dramatically improved market conditions, making it viable for Australian companies like Magellan to scale production and compete with imported systems.”
