Li-S Energy reports a $2.67 million net loss for H1 FY25 but marks significant milestones in lithium sulfur battery production and strategic partnerships.
- Net loss increased to $2.67 million for six months ending December 2024
- Commissioning of Australia's largest lithium sulfur battery production facility in Geelong
- Breakthrough energy density of 498Wh/kg achieved in GEN3 pouch cells
- Secured $1.7 million federal grant for lithium metal foil production line
- Expanded strategic partnerships with global technology leaders in aviation, defence, and transport
Financial Overview
Li-S Energy Limited (ASX: LIS) has released its interim financial results for the six months ended 31 December 2024, reporting a net loss after tax of $2.67 million, a 9% increase compared to the prior corresponding period. Despite the widening loss, the company continues to invest heavily in research, development, and scaling production capabilities, reflecting its commitment to commercialising advanced lithium sulfur battery technology.
Operational Milestones and Production Expansion
The period was marked by the successful commissioning of Li-S Energy's Phase 3 production facility in Geelong, which boasts Australia's largest dry room and an annual production capacity of up to 2MWh. This facility positions Li-S Energy as one of the world’s most advanced manufacturers of lithium sulfur batteries, enabling the company to produce commercial-sized pouch cells with unprecedented energy density.
Notably, the GEN3 semi-solid-state lithium sulfur pouch cells achieved a breakthrough energy density of 498Wh/kg on first discharge, maintaining 456Wh/kg after formation cycling. This performance places Li-S Energy at the forefront of battery technology, offering significant advantages for sectors demanding high energy density and lightweight power sources, such as aviation and defence.
Strategic Partnerships and Market Engagement
Li-S Energy has seen a surge in partner engagement, with inbound enquiries from multibillion-dollar global technology leaders across transport, aviation, and defence. The company signed at least nine non-disclosure agreements with defence primes and OEMs following its debut exhibition at the Land Forces Conference, underscoring growing industry interest in its technology.
Further, the company is advancing collaborative projects under the Emerging Aviation Technology Partnership (EATP), including the development of long-endurance solar UAVs powered by Li-S batteries. The successful UAV test flights powered by a twelve-cell lithium sulfur battery pack demonstrated practical application potential, achieving a 30-minute flight time with partial battery discharge.
Government Support and Future Growth Plans
Li-S Energy secured a $1.7 million grant from the Federal Government’s Industry Growth Program to establish Australia's first lithium metal foil production line, expected to be operational from March 2025. This initiative complements the company’s strategy to supply lithium metal foils and boron nitride nanomaterials to battery manufacturers globally.
Looking ahead, Li-S Energy is planning a Phase 4 facility with a targeted production capacity exceeding 500MWh, reflecting confidence in scaling commercial manufacturing. The company is also exploring licensing opportunities with gigafactory operators in Europe and North America, leveraging the compatibility of its lithium sulfur technology with existing lithium-ion production processes to reduce scale-up risks and costs.
Financial Position and Outlook
At period end, Li-S Energy held $17.7 million in cash and equivalents, alongside $2 million in current investments and $2 million in loan receivables, supporting its ongoing operations and development programs. The company maintains a strong net asset position of $39 million, with no fixed debt, underpinning its financial stability despite operating losses.
While the company has not declared an interim dividend, it remains focused on delivering technological advancements, scaling production, and expanding strategic partnerships to drive future revenue streams. The directors affirm the company’s status as a going concern, supported by approved project plans and cash flow forecasts.
Bottom Line?
Li-S Energy’s technological strides and production scale-up set the stage for commercial breakthroughs, but investors will watch closely as losses widen amid heavy investment.
Questions in the middle?
- How quickly can Li-S Energy convert strategic partnerships into revenue-generating contracts?
- What are the timelines and risks associated with scaling to the planned 500MWh Phase 4 facility?
- How will competition in the lithium sulfur and lithium metal battery space impact Li-S Energy’s market positioning?