Li-S Energy secures pathway into global defence markets through EPE collaboration
Li-S Energy (ASX: LIS) has signed a Collaboration Agreement with EPE Trusted to Protect (EPE), giving the developer of ultra-lightweight lithium sulfur battery technology structured access to defence and security customers and a 60+ partner network across the Indo-Pacific, North America, Europe and the UK.
Announced on 2 September 2026, the agreement is a market-access breakthrough rather than a supply contract. It is a non-exclusive arrangement that establishes a framework for the joint evaluation, qualification and introduction of LIS cells across EPE’s global network of customers and technology partners.
Li-S Energy batteries can deliver “almost twice the range, operating time and increase the payload carrying capacity” of drones and unmanned systems, according to the Company. LIS recently delivered cells to the US Army DEVCOM for independent evaluation and testing, adding parallel momentum in the United States.
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Why the EPE partnership matters for LIS investors
For LIS, engaging through one well-established partner replaces the need for many separate bilateral engagements. This offers a capital-efficient route into allied defence markets, where credibility and reach are difficult to build alone.
EPE’s credentials give the Company a level of access it could not readily assemble independently. Crucially, the agreement grants access to customers and partners only. Any commercial battery supply “will depend on the results of evaluation and qualification programs and on the procurement decisions of EPE’s customers and partners.” No revenue is secured by the agreement.
EPE’s reach spans:
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100% Australian-owned, with 25+ years’ experience
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Founded and led by Australian Army veteran Warwick Penrose
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Prime contractor to the Australian Department of Defence and the New Zealand Defence Force
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Offices in Brisbane, Wellington (NZ) and Kentucky (USA), with regional operations supporting Europe and the UK
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Recently awarded $3.05 million by the Queensland Sovereign Industry Development Fund to expand local manufacturing of Australian-designed drone systems
The significance for investors lies in addressable market expansion and a de-risked go-to-market approach, not immediate earnings.
The partner ecosystem and target platforms
The agreement’s potential is illustrated by EPE’s international partner ecosystem, which the Company describes as representing a meaningful addressable opportunity. Target platforms are a natural fit for ultra-lightweight cells, where weight directly constrains capability.
| Target platform | Why weight matters | LIS benefit |
|---|---|---|
| Drones / UAS | Every gram reduces flight endurance and payload capacity | Almost twice the range and operating time, and increased payload capacity |
| Ground robotics | Battery mass limits mission duration between charges | Lighter cells extend operating time |
| EOD robots | Endurance is critical in prolonged hazardous operations | Higher energy density supports longer deployments |
| Counter-drone systems | Portability and sustained readiness are essential | Reduced weight improves mobility and endurance |
| Soldier electronics | Carried weight affects soldier mobility and fatigue | Lighter power sources ease the load |
EPE’s network reach includes:
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60+ international defence and security OEMs
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Australia’s primes, including Babcock, BAE Systems, Thales and Leidos
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Defence forces, EOD and counter-drone units
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Law enforcement and government agencies
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Coverage across the Indo-Pacific, North America, Europe and the UK
Understanding lithium sulfur batteries
Lithium sulfur cells differ from conventional lithium-ion batteries in how they store energy. According to the Company, they offer more than twice the energy density of conventional lithium-ion, meaning more usable power can be packed into a lighter package.
In defence unmanned systems, weight is decisive. Lighter batteries translate directly into longer range, more operating time and greater payload capacity. That trade-off is central to why the technology could appeal to platform builders operating in demanding environments.
Key points include:
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More than twice the energy density of conventional lithium-ion
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Lighter weight, enabling longer range, more operating time and greater payload
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Sovereign Australian manufacturing supported by an allied materials supply chain
Sovereign manufacturing capability is a recurring theme across LIS’s strategic positioning, and the Company’s Geelong facility, Australia’s first and only dedicated lithium foil production line, achieved ISO 9001:2015 certification in May 2026, satisfying the mandatory quality assurance requirement for defence and aerospace supplier qualification.
- Applications across aviation, drones, defence and beyond
What management said
Dr Lee Finniear, Managing Director, Li-S Energy
“As we expand our presence in the allied defence and security markets, EPE is an ideal Australian partner. In one Agreement, we gain a pathway to EPE’s defence and security customers across Australia, the Indo-Pacific, North America, Europe and the UK, and to the 60+ international OEMs and Australian primes building the platforms where LIS cells can deliver real capability uplift.”
Warwick Penrose, Founder and Chief Executive Officer, EPE
“LIS provides a vital sovereign supply of advanced battery technology, designed and manufactured here in Australia. Through this collaboration we will identify, evaluate and progress opportunities for LIS cells to deliver real capability uplift across the systems we build and support, and the partners we represent.”
What comes next for Li-S Energy
Under the agreement, LIS and EPE will jointly evaluate, demonstrate and qualify LIS cells in key platforms, opening a route for potential battery supply into EPE partner platforms and end-customer systems. Any supply outcomes remain dependent on evaluation results and the procurement decisions of EPE’s customers and partners.
The DEVCOM evaluation in the United States provides parallel momentum as the Company pursues allied defence markets. No financial value is attached to the agreement, and no timelines or revenue figures were disclosed.
The DEVCOM evaluation represents LIS’s first direct engagement with a US Government agency, with cells delivered to the US Army’s principal R&D centre for C5ISR technologies at Aberdeen Proving Ground, where a successful outcome would inform procurement decisions across unmanned aerial systems, ground robotics and soldier-worn equipment.
The collaboration positions sovereign Australian battery technology to target allied defence markets, subject to the qualification and procurement outcomes that will follow.
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