Highlights

  • Li-S Energy has delivered its first lithium-sulfur battery cells to the US Army DEVCOM C5ISR Center for independent evaluation.
  • LIS shares were trading at AUD 0.15, up 11.11% during the afternoon Trading session on 24 August 2026.
  • The shipment marks the first delivery of Li-S Energy technology to a US Government agency.
  • The company has secured CASA, PHMSA and FAA approvals required to transport its lithium-sulfur cells internationally by air.
  • Li-S Energy is also progressing battery evaluations and Supply opportunities across drones, underwater vehicles and other defence applications.

Li-S Energy (ASX:LIS) has delivered its first lithium-sulfur battery cells to the US Army Combat Capabilities Development Command C5ISR Center for independent evaluation and testing, moving the company into a new stage of its defence commercialisation strategy. The shipment represents the first time Li-S Energy has supplied cells directly to a US Government agency.

Li-S Energy shares were trading at AUD 0.15, up 11.11%, or AUD 0.015, during the afternoon trading session on 24 August 2026. The stock remained down 6.25%, or AUD 0.01, over the past year.

The Australian battery technology company develops lithium-sulfur cells for applications where weight and energy density are important, including aviation, drones and defence systems. The company says its technology is approaching twice the energy density of conventional lithium-ion batteries.

US Army Begins Independent Evaluation

The lithium-sulfur cells have been received at the US Army’s Aberdeen Proving Ground, where DEVCOM C5ISR Center will conduct an independent evaluation.

DEVCOM C5ISR Center is the US Army’s research, development and engineering centre covering command, control, communications, computers, cyber, intelligence, surveillance and reconnaissance technologies.

Its activities also include the assessment and integration of power and energy systems used across land-force platforms.

Li-S Energy said an evaluation by DEVCOM represents an important stage in the US Army’s technology adoption process and can inform future procurement decisions across applications including unmanned aerial systems, ground robotics, autonomous platforms and soldier-worn equipment.

The company has not announced any procurement contract as part of the latest update. The current milestone relates specifically to independent testing and evaluation.

Battery Technology Targeted at Unmanned Platforms

Li-S Energy is positioning its lithium-sulfur chemistry for applications where lower battery weight, higher energy density and power output can affect operating range, mission endurance or payload capacity.

The cells supplied to DEVCOM have been developed with unmanned and defence platforms in mind.

According to Li-S Energy, its technology combines the energy-density characteristics of lithium-sulfur chemistry with higher power output intended to meet the demands of modern defence applications.

Managing Director Dr Lee Finniear said the shipment followed several years of technology development and Investment in Manufacturing capability.

He said the company is seeking to demonstrate the performance of the cells directly to DEVCOM as it develops its relationship with the US defence market.

First US Government Delivery Follows Regulatory Approvals

Getting the cells to the United States also required a series of transport and regulatory approvals.

Li-S Energy has now received international air transport approvals from Australia’s Civil Aviation Safety Authority, the US Pipeline and Hazardous Materials Safety Administration and the US Federal Aviation Administration.

Because the lithium-sulfur cells use a novel, high-energy-density chemistry and are regulated as dual-use goods, the company said they require specific dangerous-goods approvals beyond standard lithium-ion classifications.

These approvals enabled the current air shipment and are intended to support future international defence supply.

Li-S Energy has also obtained AUKUS membership, which the company said enables cell exports to the United States and United Kingdom without individual export permits.

UN38.3 Testing Remains Another Logistics Milestone

The company is also progressing UN38.3 testing of its cells.

Completion of this testing is intended to allow larger volumes of cells to be shipped under standard dangerous-goods classifications.

Li-S Energy views this as an important step in reducing logistics constraints as it seeks to move from smaller evaluation shipments toward higher-volume customer supply.

The latest DEVCOM delivery therefore combines a technology-testing milestone with progress in the regulatory and logistics infrastructure required for international commercialisation.

Defence Pipeline Extends Beyond the US Army

The US Army evaluation adds to several existing defence and aerospace engagements involving Li-S Energy technology.

Praetorian Aeronautics is evaluating the company’s cells for its Dagger counter-UAV interceptor drone, with the program targeting production of up to 10,000 units annually in South Australia.

Li-S Energy is also working with MSubs on testing cells for large uncrewed underwater vehicles, including pressure testing to depths of 1,000 metres.

MSubs supplies crewed and uncrewed underwater vehicles to customers including US Special Operations Command, the US Navy and the UK Ministry of Defence.

Another program involves Kea Aerospace, where Li-S Energy is targeting propulsion battery packs for the ATMOS high-altitude, long-endurance solar unmanned aerial vehicle.

The company also has a strategic cell supply agreement with a major international defence prime contractor covering unmanned systems, soldier-worn equipment and surveillance technologies.

US Representation Supports Defence Market Access

Li-S Energy has appointed Paladin Defence Services as its US representative.

The role is intended to support engagement with the United States Department of Defense and major US defence contractors.

The appointment sits alongside the DEVCOM testing program and the company’s wider effort to build relationships within the US defence procurement ecosystem.

Management views the United States as an important Target market given the scale of defence spending and increasing adoption of unmanned systems.

What Investors May Be Watching

The latest milestone moves Li-S Energy from external defence engagement into direct testing by a US Army research and engineering organisation.

The immediate question is how the cells perform under DEVCOM’s independent evaluation and whether testing leads to further technical engagement or procurement-related opportunities.

Investors may also watch progress on UN38.3 certification, which could allow larger-volume shipments under standard transport classifications.

Beyond the US Army program, the company’s other defence and aerospace evaluations provide additional reference points for commercialisation, particularly in UAV, underwater and soldier-system applications.

For now, the DEVCOM shipment represents an evaluation milestone rather than a confirmed sales contract, making testing outcomes and subsequent engagement the key developments to monitor.