Li-S Energy Awarded $1.7M Industry Growth Program Grant
LI-S ENERGY LIMITED (LIS) Share Update August 2024 Monday 12th
Li-S Energy Secures $1.7M Grant for Lithium Foil Production
Li-S Energy Limited (ASX: LIS) has announced the receipt of a $1.7 million grant from the Industry Growth Program to develop Australia's first lithium foil production line.
Instant Summary:
- Li-S Energy awarded $1.7 million IGP grant.
- Grant supports development of lithium foil production line.
- Australia produces 52% of the world's lithium ore.
- Global lithium foil market expected to reach $51 billion by 2032.
Grant Announcement
Li-S Energy Limited (ASX: LIS) has been awarded a $1.7 million Industry Growth Program (IGP) Commercialisation and Growth Grant to develop Australia's first lithium foil production line. This announcement was made by The Hon. Ed Husic, Minister for Industry and Science, on 10 August 2024.
The grant will enable Li-S Energy to produce high-quality lithium foils from lithium metal ingots. Lithium metal foil is essential for the anode of both lithium sulfur and lithium metal batteries. Currently, the imported supply of lithium foil is limited in quality and not optimised for Li-S cells.
Market Potential
Dr. Lee Finniear, CEO of Li-S Energy, highlighted the significant opportunity for Australia in the lithium market. With Australia producing 52% of the world's lithium ore, the country is well-positioned to capitalize on the growing demand for lithium metal foil, which is forecasted to reach US$51 billion by 2032.
In addition to supplying foil for its own cell production, Li-S Energy plans to market the foils to both domestic and international customers. This new production capability is expected to enhance the company's competitive edge in the global market.
Industry Growth Program
The Industry Growth Program is a $392 million initiative by the Albanese Government to support small and medium manufacturers in Australia. The program aims to overcome barriers associated with scaling up, grow manufacturing capabilities, and create stronger supply chains and well-paid jobs.
Minister Husic announced the funding by officially opening battery manufacturing facilities at Li-S Energy. The company's revolutionary technology is making low-weight, highly durable batteries suitable for uncrewed aviation and defense industries.
The $1.7 million grant is a significant boost for Li-S Energy, providing the necessary funds to develop a high-quality lithium foil production line. This development is expected to strengthen the company's position in the global lithium market and enhance its competitive edge. The announcement is likely to positively impact the company's stock price as investors react to the potential for increased revenue and market share.
Investor Reaction:
Analysts are likely to view this announcement positively, given the substantial market potential for lithium foil and the strategic importance of developing domestic production capabilities. The grant supports Li-S Energy's growth trajectory and positions the company as a key player in the lithium market.
Conclusion:
Investors should closely monitor Li-S Energy's progress in developing the lithium foil production line and consider the long-term growth potential of the company. The Industry Growth Program grant provides a strong foundation for future expansion and market leadership.