• Li-S Energy has completed a pivotal first half-year of 2024-25 to set itself up for the next stage of its transformation as it attracts growing interest from industry partners
• Highlights include its GEN3 lithium-sulfur pouch cells producing industry-leading energy density, a successful test flight and the opening of its Phase 3 facility
• The company is well funded for further progress towards commercialisation with more than $17 million in cash and cash equivalents

Special Report: Li-S Energy has reported it is moving strongly towards commercial partnerships, after major breakthroughs and industry wins.

After six months of advances in its cutting-edge battery cells and production capabilities, Li-S Energy (ASX:LIS) is looking ahead to bolstering strategic partnerships with global technology leaders in electric aviation as well as other transport sectors and defence.

And with more than $17,658,000 in cash and cash equivalents, the start-up is well funded to leverage its successes for the next stage of transformation.

Key wins in the first half of FY 24-25 include LIS’s commercially sized GEN3 semi-solid-state lithium-sulfur pouch cells producing industry-leading sustained energy density of over 450 Wh/kg.

Those results supercharge LIS’s potential for success in its high-growth target markets where battery weight is critical, such as drones.

The breakthrough cells came off the company’s state-of-the-art facility in Geelong which is home to Australia’s largest dry room and a hefty 2MWh production capacity.

Officially opened by Federal Minister for Industry and Science Ed Husic, the Phase 3 facility hosts the largest pouch cell manufacturing site in the country and gives LIS the potential to become one of the world’s most advanced manufacturers of lithium sulfur batteries.

Just three months after the facility’s opening, a 12-cell lithium-sulfur battery pack that came off the production line powered an uncrewed aerial vehicle (UAV or drone) in a 30-minute flight, proving LIS’s packs are ready for commercial lift-off.

Commercial applications set for take-off

All that has led to a ramping up of interest from new and existing industry partners for data sheets, sample cells and ultimately full battery packs.

At least nine non-disclosure agreements were signed with primes and Original Equipment Manufacturers (OEMs) as a direct result of leads generated at the Land Forces Conference and LIS is now progressing with those discussions.

Many of these engagements are subject to confidentiality agreements but involve multibillion-dollar global technology leaders across the transport, aviation and defence sectors.

Following the interest generated from the conference in September LIS plans to exhibit at the Avalon Airshow in March, as well as other relevant international conferences and exhibitions.

One ongoing engagement not behind a non-disclosure agreement is Li-S Energy’s involvement in the Emerging Aviation Technology Partnerships’ (EATP’s) ‘Dawn ‘til Dusk’ drone program. This attracted a $1.35 million grant and has Li-S Energy working with VTOL Aerospace and Halocell on the development of a long endurance solar UAV using LIS batteries.

LIS also continues to work with established partners including magniX on the NASA eAviation program.

In addition to the main Phase 3 line, LIS has commissioned a Phase 3S production line to manufacture smaller cells for fast-growing sectors including wearables and unmanned systems. Both production lines are now fully operational, with cells undergoing rigorous cycle testing and performance evaluations.

Opening doors to global demand

LIS’s credentials also led the securing of a $1.7 million grant from the federal government to install and commission Australia’s first lithium metal foil production line. This will support LIS’s goals to help meet the growing lithium foil market across the globe while also building Australia’s sovereign capability in advanced manufacturing.

CEO Dr Lee Finniear said: “The completion of the Phase 3 facility enhances our ability to engage with partners and potential strategic customers.

“It provides the cornerstone of the four key capability pillars that primes, OEMs, battery manufacturers and strategic investors are seeking in advanced battery technology partnerships.

“We’re now building on those four pillars of performance, production, product integration and pathway to scale to deliver on key projects.

“This involves our team further improving the performance, reliability and safety of our battery cells; scaling production capacity; advancing product integration via a battery management system (BMS) and pack; and ensuring a credible path to scaling production as demand grows.”

LIS’s BMS development is initially focused on building battery modules for the Long Endurance “Dawn ‘til Dusk” UAV being built under the EATP Program.

However, the BMS has been designed to be flexible so it can be applied to a wide variety of uses, from wearable power sources to advanced unmanned aviation systems.

This article was developed in collaboration with Li-S Energy, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.