Li-S Energy Opens US Pathway with First Commercial Lithium Foil Sale

Li-S Energy (ASX: LIS) completed its first commercial sale of Australian-made lithium foil and secured final approvals to airfreight prototype lithium-sulphur cells to US customers during the June quarter.

The company achieved ISO 9001:2015 quality management systems certification for its Geelong lithium foil operations, strengthening its credentials for supplier qualification across regulated defence, aerospace, and advanced manufacturing markets.

It also completed an expansion of its Battery Testing Centre, doubling the facility’s floor area and adding capability for power cycling, thermal testing, battery pack construction, vibration testing, and high-pressure depth testing.

Li-S Energy finished the period with $15.6 million in cash, cash equivalents, and short-term investments, while net operating cash outflow was $1.3m.

First Foil Revenue Arrives

The first lithium foil order was supplied to a major Australian battery research institution from Li-S Energy’s Geelong facility, which operates Australia’s first and only dedicated lithium foil production line.

The sale moved the operation from production capability development into revenue-generating supply, providing an initial commercial reference for prospective customers across research, defence, and broader commercial markets.

“While moderate in scale, this first order provides external validation of our foil capability and begins the development of lithium foil supply as a new commercial revenue stream,” chief executive officer Dr Lee Finniear said.

The ISO certification provides internationally recognised validation of the line’s quality management systems and supports engagement with customers that require certified manufacturing processes before approving suppliers.

US Shipping Barrier Removed

Approvals from Australia’s Civil Aviation Safety Authority, the US Pipeline and Hazardous Materials Safety Administration, and the Federal Aviation Administration completed the regulatory pathway for airfreighting prototype cells from Australia to the US.

The certifications allow Li-S Energy to send evaluation cells directly to US defence primes, drone manufacturers, government agencies, and commercial partners after more than 18 months of technical and compliance work.

Testing under the MSubs collaboration also began during the quarter, with cells being exposed to simulated deep-ocean pressures building towards depths of up to 1,000 metres for potential use in large uncrewed underwater vehicle propulsion systems.

Additional battery packs were manufactured for VTOL Aerospace ahead of flight testing expected in the coming quarter under the Emerging Aviation Technology Partnership program.

Manufacturing Scale-Up

HATCH progressed the Front End Loading Level 1 (FEL-1) feasibility study for the company’s Phase 4 manufacturing plant, which is being supported by a $7.8m government grant and targeting a phased ramp-up to one gigawatt-hour of annual production capacity.

The FEL-1 study is assessing scale, infrastructure requirements, the capital cost envelope, and development timing, with completion scheduled for the third quarter of calendar year 2026.

Parallel optimisation studies covering cathode production, anode production, cell stacking, and recycling are feeding into the FEL-1 knowledge base with the aim of reducing production cost and process complexity.

The expanded Battery Testing Centre adds 64 power-cycler channels, thermal chambers, a battery pack workshop and secure testing containers, increasing capacity for certification programs, partner evaluations, and battery module development.

“Each of these milestones moves Li-S Energy further along the path from technology development to commercial delivery,” Dr Finniear added.