Queensland-based Li-S Energy has officially opened its 2 MWh battery cell production facility in Geelong, Victoria, marking a significant advancement in Australia's battery manufacturing capabilities. During the inauguration, the company also announced it has been awarded a $1.7 million grant from the Australian government's Industry Growth Program. This funding will be directed towards establishing the nation's first lithium foil manufacturing facility, a critical step in bolstering domestic production of advanced battery materials.
Li-S Energy, which specialises in lithium-sulphur and lithium metal batteries, is expanding its operations with the new production line in Victoria. The facility, which cost over $10 million to build, is the largest of its kind in Australia and covers the entire battery production process, from creating and coating cathode powders to final cell fabrication and testing. This investment is part of Li-S Energy’s broader strategy to lead in the development of advanced battery technologies that are lighter and more efficient than traditional lithium-ion batteries, particularly for applications where weight is critical, such as drones, electric aviation, and defence.
The $1.7 million federal grant will support Li-S Energy in developing a high-quality lithium foil manufacturing process. Lithium foil is essential for both lithium-sulphur and lithium metal batteries, but current imported supplies are not optimised for the company’s advanced battery designs. The new facility will produce lithium foils and laminates from lithium metal ingots, reducing supply chain risks and increasing the value of Australia’s battery material exports. As Dr. Lee Finniear, CEO of Li-S Energy, pointed out, "Australia currently produces 52% of the world’s lithium ore, yet much of this is exported without adding additional value. With global demand for lithium metal foil forecast to reach USD 51 billion by 2032, Australia has a unique opportunity to capitalise on this emerging market."
In addition to these developments, Li-S Energy is also involved in a range of other innovative projects. The company has received a grant of over $1.35 million under the Australian Government’s Emerging Aviation Technology Partnerships (EATP) program. This grant will support the development of a fixed-wing drone equipped with solar cells and Li-S Energy’s advanced batteries, capable of flying from dawn to dusk without needing to land or recharge. The project, a collaboration between Li-S Energy, V-TOL Aerospace, and HaloCell, aims to extend the flight times and mission capabilities of unmanned aerial systems (UAS), with significant implications for industries such as surveillance, agricultural monitoring, and security.
The new lithium foil production facility, once operational, will also contribute to these efforts by supplying the high-quality materials needed for these advanced batteries. The facility is expected to begin ordering key components by the end of the year, with plans to deliver the first cells from the Phase 3 production line for testing by September.
In the broader context of Australian innovation in aviation technology, the federal government is also funding several other projects under the EATP program. These include the development of electric vertical take-off and landing (eVTOL) aircraft, hydrogen refuelling systems, and other advanced technologies aimed at improving regional connectivity and supporting the growth of sustainable aviation in Australia.
Mark Xavier, CEO of V-TOL Aerospace, emphasised the importance of Li-S Energy's work in the aviation sector, stating, "Li-S Energy batteries are a game changer for the aviation and drone industry. By extending the range, flight time, and payload of unmanned air systems, it opens up entirely new use cases." This collaboration is expected to position Australia as a leader in the development and deployment of next-generation battery technologies, further supported by the government’s commitment to innovation and sustainable growth in the energy and aviation sectors.