The Australian Renewable Energy Agency (ARENA) has confirmed AU$7.86 million (US$5.11m) in funding to Li-S Energy, backing the development of lithium-sulfur battery technology and supporting the next stage of Australia’s advanced battery manufacturing ambitions.
The investment will allow Li-S Energy to progress manufacturing optimisation, feasibility studies and front-end engineering design (FEED) for a proposed lithium-sulfur battery cell facility.
The new site is designed to deliver up to 1GWh of annual battery cell capacity – a dramatic increase on the company’s current Geelong-based operations, which would represent 500 times more output.
ARENA CEO Darren Miller emphasised the importance of the project in strengthening local capability and accelerating innovation.
“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. 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 technology offers the potential to double the energy density of conventional lithium-ion cells, enabling lighter and longer-lasting solutions for electric vehicles, drones, wearables and other applications. This aligns with the Australian Government’s energy storage strategy, which prioritises renewable integration and reduced reliance on imported systems.
Li-S Energy CEO and managing director, Dr Lee Finniear, said, “This funding enables us to accelerate the critical commercial and engineering studies needed to progress advanced lithium-sulfur batteries toward large-scale production.”
The funding forms part of ARENA’s Advancing Renewables Program, which remains open to applications that strengthen renewable energy supply and competitiveness.

