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Highlights:

  • LIS enters cell supply agreement with global defence technology company for military testing.
  • The company to deliver first batch of Li-S cells for evaluation in next quarter.
  • LIS targets defence sector expansion amid rising demand for unmanned and wearable systems.
  • LIS share price gained 45% on Wednesday to AUD 0.14 per share.

Share price of Li-S Energy Limited (ASX:LIS) jumped 45.16% to AUD 0.14 per share on Wednesday after the company announced that it has entered into a formal collaboration and cell supply agreement with an unnamed global defence technology partner. The partner specialises in integrated systems development and supplies military and security solutions to clients worldwide, including in the U.S., Europe, and Australia.

Under the collaboration, Li-S Energy will supply its battery cells for testing by the defence company. The tests will evaluate performance and safety of the lithium-sulfur cells in various defence-related applications, with a focus on soldier systems and unmanned aerial, land, and maritime platforms. These systems rely on battery power, and improving energy storage is increasingly important in modern military operations.

The first batch of battery cells is scheduled for delivery during the upcoming quarter. If successful, the testing could lead to integration of Li-S Energy’s batteries into the partner’s defence systems and broader procurement discussions with military clients across global markets.

The unnamed partner, described as a long-standing player in the defence sector, has over two decades of experience developing advanced military systems. Its technology portfolio includes integrated platforms for vehicles and soldier operations, which are already deployed with allied forces. The company is commercially established and has successfully cleared Li-S Energy’s credit checks.

The testing and potential integration process aims to assess how Li-S Energy’s battery technology can support the partner’s product performance in real-world military conditions. Discussions between the parties will extend to identifying specific products that could benefit from lightweight, high-energy-density battery solutions, and explore pathways to commercial deployment in defence procurement cycles.

The agreement is part of Li-S Energy’s broader strategy to engage with key sectors that demand advanced battery performance. As part of this approach, the company is actively expanding discussions with a range of other potential defence and aerospace partners in Australia and internationally.

Commenting on the agreement, Li-S Energy CEO Lee Finniear noted the growing global interest in defence battery solutions. He said the company’s new 2 megawatt-hour (MWh) production and testing facility enables it to advance international engagement, including testing partnerships like the one now underway.

“This year, we are expanding engagement across key markets, offering partners opportunities to test and trial our technology in real-world conditions,” he said. “We are seeing rising investment in unmanned systems and wearable soldier technologies, all of which require effective and efficient energy storage.”