Australian battery maker Redflow has launched an AUD14.5 million ($11.5m) funding round “to target sustainable delivery of its zinc-bromine flow batteries to high demand areas” such as telecoms and remote/off-grid power.
The announcement follows the Brisbane-based company’s strategic review last May, which set out plans to “transition” manufacturing to Southeast Asia from South America, cut supply chain costs and implement “cost-down projects” to reduce delivered product manufacturing cost “by at least 30% over the next 18 months”.
Redflow announced to the Australian Securities Exchange on 14 July its equity raising comprised a share placement AUD10.5m ($8.3m) in two tranches to sophisticated and professional investors and the issue of AUD4m ($3.1m) worth of shares to Hackett CP Nominees Pty Ltd – an entity associated with Redflow CEO and executive chairman Simon Hackett (pictured) – in exchange for already-issued convertible notes.
Hackett said: “We have identified that the telecommunications sector has a strong, proven and ongoing demand for energy storage that fits the ‘sweet spot’ of Redflow’s unique value proposition.”
“In May, Redflow recorded its largest sale to date, to an energy systems integrator working in the telecommunications and network power sector,” Hackett said. “At the same time, Redflow will continue supplying into its ZCell residential battery sales channel which is delivering our compelling energy storage solution for residential and SOHO (small office/home office) customers, especially those located in off-grid areas or warm climates.”
Meanwhile, Redflow chief operating officer Richard Aird said the switch from the company’s former manufacturing location in Juarez, Mexico to Southeast Asia, to shorten the distance between production and customer, was “substantially complete”.
“The activities Redflow is undertaking to transition manufacturing and to implement key product cost-down projects are critical to the future success of the company,” Aird said.
“Product deliveries will continue from built-up stock-on-hand and stock in transit ahead of the planned resumption of manufacturing in Southeast Asia toward the end of this calendar year,” Aird said.