Administrators seek buyer for Brisbane-based battery maker

Administrators have launched an expressions-of-interest process seeking a buyer for Brisbane-based RedEarth Energy Storage after the battery designer and manufacturer entered voluntary administration late last month citing “damaging levels” of competition from cheaper imported batteries.

According to an Australian Securities and Investments Commission (ASIC) notice, RedEarth Energy Storage appointed administrator Travis Pullen from B&T Advisory on 25 September, with a first meeting of creditors scheduled for Thursday, 8 October.

B&T Advisory has already launched an Expressions of Interest (EOI) process for RedEarth Energy Storage, saying offers are invited for the company as “an installed-use business asset sale, including intellectual property, inventory, equipment and strategic assets.”

“[It’s] an opportunity to acquire battery energy storage technology, stock and associated business assets,” the EOI notice reads.

The process for expressions of interest runs until Friday, 9 October.

Founded in 2013, RedEarth Energy Storage designs, assembles and sells branded battery energy storage systems for the residential market from its headquarters in the Brisbane suburb of Darra.

Competition from lower-priced imported residential batteries has however taken a toll.

Quoting a letter circulated to RedEarth Energy Storage investors by the company’s board, the Australian Financial Review said shareholders were told the business had been experiencing “significant cash flow difficulties” that had now become “overwhelming.”

“Over the past months [Red Earth Energy Storage] has experienced damaging levels of competition from cheaper imported batteries, particularly in the residential sector,” the letter reportedly says.

“This competitive pressure is likely to extend during the coming financial year, placing further strain on REES’s cash position and ability to continue as a standalone business.”

pv magazine has sought a statement from the company.