Li-S Energy (ASX:LIS) Signs Collaboration Agreement With EPE to Access Global Defence Markets, Shares in Focus

Sonal Goyal

21 September 2026 04:25 AM AEST

Li-S Energy (ASX:LIS) Signs Collaboration Agreement With EPE to Access Global Defence Markets, Shares in Focus

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Li-S Energy Limited (ASX:LIS) share price decreased 6.45% on 21 September, despite the company recently announcing that it has signed a Collaboration Agreement with EPE Trusted to Protect, one of Australia's most established defence and national security companies, providing Li-S Energy (ASX:LIS) with structured access to defence and security customers across a network spanning the Indo-Pacific, North America, Europe and the United Kingdom. The agreement gives the developer of ultra-lightweight lithium sulfur battery technology a pathway into EPE's more than 60 international defence and security partner network, including Australia's own defence primes, as it works to commercialise batteries designed to extend the range, operating time and payload capacity of drones and unmanned systems.

Latest Development

Under the Collaboration Agreement, Li-S Energy and EPE will jointly evaluate, demonstrate and qualify LIS's lithium sulfur cells across key platforms within EPE's global partner ecosystem, opening a potential route for battery Supply into EPE's partner platforms and end-customer systems. The agreement establishes a framework for introducing LIS's advanced cells to a wide range of potential customers and technology partners that would otherwise require many separate, individually negotiated bilateral relationships.

EPE is a 100% Australian-owned defence and national security company founded by Australian Army veteran Warwick Penrose, with more than 25 years of experience and an operating presence across Australia, New Zealand, the United States, Europe and the United Kingdom. The company is a prime contractor to the Australian Department of Defence and the New Zealand Defence Force, and its partner ecosystem includes more than 60 international defence and security OEMs, alongside Australian primes including Babcock, BAE Systems, Thales and Leidos.

The agreement's target platforms include drones, ground robotics, explosive ordnance disposal (EOD) robots, counter-drone systems and soldier electronics — applications the companies describe as a natural fit for LIS's ultra-lightweight battery cells. Li-S Energy has recently delivered cells to the US Army's DEVCOM for independent evaluation and testing, and EPE was separately awarded $3.05 million by the Queensland Sovereign Industry Development Fund to expand local Manufacturing of Australian-developed battery-powered drones.

Managing Director Dr Lee Finniear said the agreement provides a pathway to EPE's defence and security customers across multiple regions in a single agreement, while EPE Founder and CEO Warwick Penrose said the collaboration would help identify and progress opportunities for LIS cells to deliver capability uplift across the systems EPE builds and supports. Both parties confirmed that any commercial battery supply outcomes will depend on the results of evaluation and qualification programs and on the procurement decisions of EPE's customers and partners.

Sector Context

Li-S Energy operates in the advanced battery technology sector, specifically developing lithium sulfur cells that the company says offer more than twice the energy density of conventional lithium-ion batteries, positioning the technology for applications where weight is critical, such as aviation, drones and defence systems. The defence and unmanned systems market has become an increasingly important growth avenue for battery technology developers, given the sector's Demand for lighter, longer-endurance power sources to extend the range and payload capacity of platforms like drones and ground robots.

Partnering with an established, well-connected defence integrator such as EPE reflects a common go-to-market strategy for specialist technology developers seeking to access defence and security markets, which are typically characterised by long sales cycles, rigorous qualification processes, and customer relationships built over many years. By working through EPE's existing partner ecosystem, Li-S Energy gains a more direct pathway to evaluation and potential adoption than it might achieve independently, though actual Revenue generation remains contingent on successful technical qualification and the procurement decisions of EPE's end customers.

Risks

Non-exclusive and early-stage nature of the agreement, meaning commercial battery supply outcomes depend entirely on the results of future evaluation and qualification programs rather than being guaranteed by the agreement itself.
Reliance on the procurement decisions of EPE's customers and partners, which are outside Li-S Energy's direct control.
Execution risk in successfully qualifying LIS cells across the range of target platforms, including drones, ground robotics, EOD robots and counter-drone systems.
Competitive risk in the battery technology sector, where other developers may also be pursuing similar defence and security market opportunities.
Typical defence sector risks including long qualification and procurement timelines, which can delay the conversion of Partnership agreements into recurring commercial revenue.

What to Watch Ahead

Progress of the joint evaluation, demonstration and qualification programs for LIS cells across EPE's target platforms.
Any specific customer or platform announcements arising from the collaboration as evaluation programs progress.
Continued development of Li-S Energy's relationship with the US Army's DEVCOM, following the recent delivery of cells for independent evaluation and testing.
EPE's own growth, including the expansion of its Australian manufacturing capacity for battery-powered drones under the Queensland Sovereign Industry Development Fund award.
Broader adoption trends in the defence and unmanned systems sector for lithium sulfur battery technology relative to conventional lithium-ion alternatives.

The Bottom Line

Li-S Energy (ASX:LIS) used its 2 September 2026 announcement to outline a partnership strategy aimed at accelerating its access to global defence and security markets through a single agreement with an established, well-networked Australian defence company. Rather than building numerous individual customer relationships from scratch, Li-S Energy (ASX:LIS) gains a structured pathway to EPE's more than 60 international partners and Australia's own defence primes, spanning multiple regions and target platforms. For investors following Li-S Energy (ASX:LIS), the next markers to watch will be the progress and outcomes of the joint evaluation and qualification programs, since any commercial battery supply remains contingent on those results and on the procurement decisions of EPE's customer base.

FAQs

Q: What did Li-S Energy announce on 2 September 2026?

A: Li-S Energy announced a Collaboration Agreement with EPE Trusted to Protect, an Australian-owned defence and security company, providing structured access to defence and security customers across the Indo-Pacific, North America, Europe and the UK.

Q: What does the Collaboration Agreement between Li-S Energy and EPE involve?

A: The two companies will jointly evaluate, demonstrate and qualify Li-S Energy's lithium sulfur battery cells across key defence platforms including drones, ground robotics, EOD robots and counter-drone systems, opening a potential route for battery supply into EPE's partner network.

Q: Does the agreement guarantee Li-S Energy will supply batteries to EPE's customers?

A: No, the companies have stated that any commercial battery supply outcomes will depend on the results of the evaluation and qualification programs and on the procurement decisions of EPE's customers and partners.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.