Australian Renewable Energy Agency (ARENA) has awarded AUD 7.86 million to Li-S Energy Ltd for a new proposed lithium-sulfur battery manufacturing facility. The new lithium-sulfur (Li-S) battery cell facility will have a manufacturing capacity of up to 1 GWh per year. This marks a profound scale-up compared to the company’s existing pilot line in Geelong. ARENA’s 7 million backing will focus on front-end engineering design (FEED) and a feasibility study for the 1 GWh lithium-sulfur battery manufacturing line.
Project Factsheet for Li-S Energy Next-Gen Battery Manufacturing Facility
Developer: Li-S Energy Ltd
Funding Agency: ARENA
Fund Amount: AUD 7.86 million
Technology: Lithium-sulfur (Li-S) high-energy-density battery cells.
Battery Capacity: Up to 1 GWh per year
Current Facility Status: FEED and feasibility study.
Overview of the Project’s Timeline
2024-2025: Li-S Energy’s material breakthroughs. Geelong facility pilot line development also takes shape.
November 2025: ARENA announces AUD 7.86 million funding for Li-S Energy’s new proposed lithium-sulfur battery cell manufacturing facility.
Late 2025 Onward: FEED and feasibility study to take place. Also expected is potential FID for the new 1 GWh manufacturing facility. Construction and commissioning will be subject to FID.
More on Li-S Energy Next-Gen Battery Manufacturing Facility
Australia’s ARENA backing next-generation lithium-sulfur battery manufacturing with AUD 7.8 million in funding comes as global battery markets look toward developments that can overcome the constraints of traditional lithium-ion. Lithium-sulfur has been long known for its energy density advantages. Its deployment has however been limited by durability and manufacturing challenges. Recent material breakthroughs such as Li-S Energy’s proprietary nano-structured sulfur cathode and advanced solid-state interfaces are giving the technology a better outlook. Australia’s push for domestic lithium sovereignty also reflects what other countries like the U.S. are doing. The U.S. expects to start construction of its first new lithium mine in 60 years, Rhyolite Ridge in Nevada later this year.
The Region’s Battery Landscape and Li-S Energy’s New Lithium-Sulfur Manufacturing Facility
The Asia-Pacific battery storage supply chain continues to grow with China’s gigafactories dominating lithium-ion, and Korea and Japan in advanced materials. India is also scaling up its Production Linked Incentive (PLI)-backed battery production.
Australia has also been actively pushing into the battery storage business over the recent years. Testament to this are the large-scale co-location projects under CIS Tender 4 announced in October, and numerous others (to be) rolled out through the years. The funding for lithium-sulfur batteries manufacturing by the ARENA to Li-S will also appeal to markets like aviation, defense and heavy logistics. The technology’s commercial deployment is also expected to scale-up to large-scale battery energy storage systems (BESS) in the near future.
