Li-S Energy has received the first $1.9 million tranche of a $7.8 million ARENA grant and appointed Hatch to lead a feasibility study for scaling up its lithium-sulfur battery manufacturing to 1 GWh capacity.
- Received initial $1.9 million tranche of $7.8 million ARENA grant
- Engaged Hatch for Phase 4 FEL-1 feasibility study
- Targeting 1 GWh annual lithium-sulfur battery production
- Focus on defence, drone, and aerospace sectors
- Scale-up beyond existing Geelong Phase 3 automated line
Funding Milestone Achieved
Li-S Energy Limited has taken a significant step forward in its ambition to scale up lithium-sulfur battery manufacturing, securing the first $1.9 million tranche of a $7.8 million grant from the Australian Renewable Energy Agency (ARENA). This funding injection under the Advancing Renewables Program is earmarked to support the critical engineering work necessary for the company’s Phase 4 Front-End Loading (FEL-1) feasibility study.
Strategic Appointment of Hatch
To lead this pivotal study, Li-S Energy has appointed Hatch, a global engineering consultancy with proven expertise in battery manufacturing and gigafactory-scale projects. Hatch’s involvement is expected to bring robust technical and commercial insights, helping to define the infrastructure and manufacturing scale-up pathway beyond Li-S Energy’s current Phase 3 automated production line based in Geelong, Victoria.
Ambitious Production Targets
The feasibility study focuses on developing a large-scale lithium-sulfur battery manufacturing facility with a target production capacity of up to 1 gigawatt-hour (GWh) per annum. This scale-up is critical for meeting growing demand in high-performance sectors such as defence, drones, and aerospace, where energy density and secure supply chains are paramount.
Market Implications and Future Outlook
Li-S Energy’s technology, which incorporates proprietary BNNTs and Li-Nanomesh™, promises more than double the energy density of traditional lithium-ion batteries. The successful completion of the FEL-1 study and subsequent scale-up could position the company as a key supplier in specialised markets requiring advanced battery solutions. Moreover, the engineering-led project definition is expected to facilitate customer adoption and pave the way for future offtake agreements.
CEO Perspective
Dr Lee Finniear, CEO and Managing Director, emphasised the importance of this milestone, highlighting the critical role of ARENA funding and Hatch’s expertise in advancing the company’s manufacturing readiness. The announcement signals Li-S Energy’s commitment to transitioning from pilot-scale production to a commercially viable large-scale manufacturing operation.
Bottom Line?
Li-S Energy’s next moves in the FEL-1 study and capital deployment will be crucial to watch as it aims to transform battery manufacturing scale in Australia.
Questions in the middle?
- What is the timeline for completing the Phase 4 FEL-1 feasibility study?
- When will Li-S Energy decide on capital expenditure for the 1 GWh facility?
- Are there any preliminary customer or offtake agreements in the pipeline?