Australia’s push to scale up advanced battery production has taken a significant step forward, with the Australian Renewable Energy Agency (ARENA) awarding $7.86 million to Li-S Energy Ltd to accelerate the development of next-generation lithium-sulfur battery manufacturing.
The funding will support manufacturing optimisation, a feasibility study and front-end engineering design (FEED) for a proposed large-scale lithium-sulfur battery cell facility. If realised, the plant would produce up to 1 GWh of battery cell capacity each year – a 500-fold increase on the company’s current output from its Geelong site.
ARENA chief executive Darren Miller said the project demonstrates Australia’s determination to grow its sovereign capability in energy storage technologies and drive commercial readiness for emerging systems.
“By supporting Li-S Energy’s plans to scale up lithium-sulfur battery production, we are helping to fast-track the commercialisation of breakthrough battery technologies,” Mr Miller said.
“Batteries are essential to the clean energy transition, both for energy storage and transport. That’s why it’s critical we keep advancing innovations that improve performance, increase energy density and drive down costs.”
Lithium-sulfur chemistry has long been viewed as a promising successor to conventional lithium-ion systems. The technology offers the potential for up to twice the energy density, opening the door to longer-range performance and lighter-weight batteries for electric vehicles, drones, wearables and defence applications. ARENA’s support aligns with the federal government’s energy storage strategy, which places priority on technologies that can integrate more renewable energy and reduce dependence on imported battery systems.
Li-S Energy chief executive and managing director Dr Lee Finniear said the funding marks a crucial milestone for the company’s commercial ambitions.
“This funding enables us to accelerate the critical commercial and engineering studies needed to progress advanced lithium-sulfur batteries toward large-scale production. It will help meet growing demand for lightweight batteries in drones, defence, aerospace and other relevant high-value commercial markets,” Dr Finniear said.
ARENA’s investment comes amid surging demand for energy storage capacity as more renewable generation enters the national grid. Diversifying storage technologies is one of the agency’s strategic priorities.
The project has been funded under ARENA’s Advancing Renewables Program, which remains open to applications supporting renewable energy supply and competitiveness.
Since 2012, ARENA has provided more than $3 billion in grant funding across more than 800 projects, catalysing almost $15 billion in total investment. The agency maintains a central role in bridging early-stage innovation and commercial deployment, helping prevent emerging technologies from relocating offshore.
