Synertec Corporation Ltd (ASX:SOP) Ltd (ASX:SOP) is reportedly planning to cut costs dramatically for its flagship Powerhouse technology, a low-carbon generator that combines battery storage and solar power, as it catches tailwinds from shifting global supply chains and increased competition among Chinese battery manufacturers.
With the global battery market facing intense price pressure, Synertec is primed to capitalise on discounted batteries from Chinese suppliers, potentially halving production costs in the next two years. The Melbourne-based engineering company’s cost reductions could make Powerhouse an even more competitive solution for industries seeking reliable, cost-effective and sustainable off-grid power.
Strategic cost reductions for Powerhouse technology
Synertec’s Powerhouse, which integrates solar power with battery storage and cutting-edge control systems, has already demonstrated its effectiveness in the field. Installed at Santos gas wells in remote Queensland, the system has proven to be 50% cheaper to operate than traditional diesel generators, with reliability exceeding 99.9%.
Now, with competition intensifying in the global battery market, the company is gearing up for a substantial reduction in its production costs. Synertec has secured bulk discounts with top-tier battery suppliers, leveraging the pricing pressures facing Chinese battery manufacturers.
These suppliers, under pressure from government subsidy withdrawals and trade dynamics, are eager to secure new markets for their excess battery stock. According to an Australian Financial Review report on Tuesday, Synertec managing director Michael Carroll said the company could see costs fall by 50-70% over the next two years, a significant reduction that could drive wider adoption of Powerhouse units.
Expanding partnerships and scaling up production
In addition to price reductions, Synertec is scaling up its production capabilities. In a strategic move, Synertec recently partnered with global battery giant Ritar International Group, a collaboration expected to increase production capacity and streamline the manufacturing process. This partnership is poised to enable Synertec to deliver hundreds of Powerhouse units annually, further solidifying the technology’s viability in industrial and remote energy markets.
The deal with Ritar is set to further enhance the cost-efficiency and scalability of Powerhouse, with a focus on improving supply chain resilience and optimising battery systems for extreme conditions.
Sustainability recognition: AFR Sustainability Leader 2025
Synertec's commitment to innovation and sustainable energy solutions has recently been recognised on a national scale. The company was named the 2025 AFR Sustainability Leader in the Professional Services, Engineering, Advisory & Health category — highlighting the impact of Powerhouse.
“It highlights that sustainability, reliability and affordability can coexist, even in the most remote corners of Australia,” Carroll said. “This recognition affirms our belief that engineering, when driven by purpose, can shape a cleaner, more resilient future.”
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As Synertec continues to advance its technology, it aims for Powerhouse to play a pivotal role in Australia’s sustainable future, helping industries and communities transition from fossil fuels while emphasising performance and reliability.