Li-S Energy signs collaboration agreement with Safesky Systems at Land Forces 2026
Li-S Energy (ASX: LIS) has signed an agreement with Safesky Systems Pty Ltd at Land Forces 2026 in Perth, targeting the supply of Australian made lithium sulfur batteries for Safesky’s fleet of tactical drones. Safesky is a Victoria-based company that designs and manufactures tactical uncrewed aerial systems (UAS).
The agreement establishes a framework for the two companies to jointly evaluate, test and integrate LIS cells and battery packs into Safesky platforms, progressing to commercial supply subject to the results.
This is a collaboration agreement, not a supply contract. The announcement does not disclose a contract value, volumes or revenue. Safesky adds to the growing list of Li-S Energy’s Australian defence partners.
Key highlights:
- Agreement signed at Land Forces 2026 in Perth
- Targets supply of sovereign-produced lithium sulfur cells
- Cells can deliver almost twice the range, operating time and payload carrying capacity of conventional lithium-ion batteries, according to the company
- Commercial supply is contingent on the results of joint testing
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Why lithium sulfur batteries matter for tactical drones
Lithium sulfur explained
Drone performance comes down to three things: range, operating time and payload. All three are defined by the battery.
Energy density measures how much energy a battery stores for its weight. The energy density of Li-S Energy’s GEN3 cells is approaching 500Wh/kg, close to twice that of conventional lithium-ion, so a drone can fly further, loiter longer or carry more payload for the same battery weight.
A Pegasus drone flight in Australia has already shown the effect in practice, covering more than 75 kilometres on a single Li-S pack with 80% more range than an equivalent lithium polymer pack of the same cell weight.
The company’s high-power Power Cell extends these benefits to multi-rotor platforms such as those developed by Safesky Systems.
Sovereign supply chain advantage
The cells are made in Geelong, Victoria and contain no graphite, nickel, cobalt or manganese, the materials that tie almost every lithium-ion supply chain to non-allied processing. For defence customers, supply chain assurance is a procurement requirement.
Safesky’s NDAA-compliant platforms and Li-S Energy’s Australian-made cells will enable an allied supply chain for both the platform and the battery.
Jack Kormas, Chief Executive Officer, Safesky Systems
“…Li-S Energy gives us an Australian made battery with the potential to materially extend the endurance and payload of our platforms, while removing one of the last non-allied dependencies in our supply chain…”
Safesky Systems: the drone partner
Safesky is headquartered in Melbourne, Victoria, with operations in Australia and the United States. Its systems are National Defense Authorization Act (NDAA) compliant and built to maximise the use of allied supply chains.
The announcement lists the following current platforms:
| Platform | Type | Role |
|---|---|---|
| VTRX | Fixed-wing VTOL | Tactical mothership, ISR and strike platform |
| Sentinel | Tactical multirotor UAV | Surveillance, training and target operations |
Safesky’s company profile also lists the Boomerang tactical command and control UAS.
Safesky will also participate in Army Innovation Day 2026 (AID26), which forms part of the Australian Army’s ongoing approach to innovation and experimentation.
Pathway to commercial supply and next steps
What happens next
Under the agreement, the two companies plan to work through the following steps:
- Evaluate LIS cells against the power and energy requirements of Safesky’s platforms
- Build battery packs for integration
- Conduct ground and flight testing
- Progress to commercial battery supply for Safesky’s drone fleet, which is the stated intention
Initial design evaluation is expected to commence in the current quarter, with battery pack integration and flight testing to follow. No later dates are disclosed.
Commercial outcomes will depend on the results of this work and on the procurement decisions of Safesky’s customers.
Management view
Dr Lee Finniear, Managing Director and Chief Executive Officer, Li-S Energy
“Safesky builds exactly the kind of tactical drones where our batteries make the biggest difference… We are excited to work with the Safesky team on what we believe will be a long and fruitful collaboration.”
Li-S Energy has stated it will keep the market informed of material developments in accordance with its continuous disclosure obligations.
Investors exploring how Li-S Energy’s qualification work is progressing in the United States can read our detailed coverage of the US Army cell shipment, which explains the CASA, PHMSA and FAA approvals and what a successful evaluation could mean for procurement.
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