Li-S Energy gets funding boost to advance battery manufacturing facility

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Li-S Energy has been awarded a $7.86 million (USD 5.1 million) grant by the federal government to support its plans to build a giga-scale lithium-sulfur (Li-S) battery cell production facility as it moves towards commercialisation of its next-generation energy storage solutions.

Brisbane-headquartered Li-S Energy is aiming to build a manufacturing plant targeting an eventual output of up to 1 GWh per year of battery cell capacity – 500 times the capacity of the company’s existing 2 MWh automated production line at Geelong in Victoria.

The company said the Australian Renewable Energy Agency (ARENA) funding will enable it to undertake a manufacturing optimisation program, a feasibility study and front-end engineering design (FEED) for the proposed manufacturing plant. On completion of this work, Li-S Energy said it expects to engage with strategic and joint-venture partners to collaborate on delivery of the facility.

Li-S Energy Chief Executive Officer Lee Finniear said the new funding is a major step towards commercialising the company’s tech as it targets the rapidly growing drone, defence and electric aviation markets where weight is critical.

“This funding enables us to accelerate the critical commercial and engineering studies needed to progress advanced lithium-sulfur batteries toward large-scale production,” he said.

“It will help meet growing demand for lightweight batteries in drones, defence, aerospace and other relevant high-value commercial markets. In particular, it strengthens domestic supply chains and backs Australian innovation to deliver commercial production right here in Australia.”

Indicative aerial view of proposed production facility.

Image: Li-S Energy

Lithium-sulfur batteries have the potential to deliver up to twice the energy density of conventional lithium-ion batteries with Li-S Energy having already manufactured full size 10Ah semi-solid-state cells at its existing Geelong production facility that deliver an energy density of 498 Wh/kg on first discharge and 456 Wh/kg after formation cycling, with the cells continuing to cycle in ongoing testing.

The company said momentum is now accelerating across its operations and technology with its proprietary lithium-sulfur chemistry and manufacturing processes generating strong commercial interest.

“Over the last year we have signed commercial partnerships with a number of businesses across the drone and defence sectors,” Li-S Energy said, adding that “demonstrating the ability to scale production is a key enabler for customer adoption and offtake agreements.”

ARENA CEO Darren Miller said the project reflects the federal agency’s commitment to build sovereign domestic manufacturing capability and accelerate innovation in energy storage.

“By supporting Li-S Energy’s plans to scale up lithium-sulfur battery production, we are helping to fast-track the commercialisation of breakthrough battery technologies,” he said.

“Batteries are essential to the clean energy transition, both for energy storage and transport. That’s why it’s critical we keep advancing innovations that improve performance, increase energy density and drive down costs.”

The funding has been administered under ARENA’s Advancing Renewables program.

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