Li-S Energy aims to deliver breakthrough lithium tech

Lithium-sulphur battery technology developer Li-S Energy commenced trading on the ASX this week after raising $34 million in an oversubscribed IPO.

Li-S Energy said it has made key technological breakthroughs with the potential to make lithium-sulphur batteries commercially viable by extending their cycle life, creating a genuine alternative to mature lithium-ion battery technology.

Lithium-sulphur batteries have the potential to substantially extend electric vehicle ranges, drone flight times and device battery life.

Lithium sulphur has several advantages over ion technology, however, they tend to fail quickly, often in less than 100 charge/discharge cycles. As a result, until now, they have simply not been practical for most mainstream battery applications.

Li-S Energy has made two key breakthroughs to dramatically improve the cycle life of lithium-sulphur batteries, approaching that of everyday consumer-grade lithium-ion batteries.

In a joint venture with PPK Group, Deakin University and BNNT Technology, Li-S Energy raised $34 million via an IPO of 40 million shares at $85 cents.

Li-S Energy now has a pro forma cash balance of $52.9 million setting it up to pursue its commercial and R&D activities. $29m is earmarked for project expenditure with working capital of ~$16.5m to fund potential expansion and/or acceleration of existing projects, the commencement of new development projects and the pursuit and engagement in revenue-generating opportunities through Original Equipment Manufacturer collaboration and other partnerships.

CEO Dr Lee Finniear commented: “The success of the IPO is testament to the market’s understanding of, and enthusiasm for, the breakthroughs we have made to render possible the commercial viability of lithium-sulphur batteries. Ours is a genuine Australian technology success story with global application and the realistic potential to allow EVs to drive further, drones to fly longer and mobile devices to last for days instead of hours. We continue to make strong technical progress. We are in an enviable financial position to pursue commercialisation of our technology into a global market looking for alternatives to lithium-ion batteries - a mature technology that is essentially ‘maxed out’ in terms of opportunities to materially improve its operating performance.”