Ann: Annual Report to shareholders, page-2

"Considerationof additional growth opportunities, both organic and inorganic. In particular,we have identified our clear competitive advantage in providing batteries fordrones and heavy vehicles (e.g. prime movers and mining) and have deepeningpartnerships in both areas."

"Leveragingour outstanding lab results to access industrial and research opportunities inEurope, including the Fraunhofer Institute in Germany"

"LIS hasjoined the Future Battery Industry CRC giving it access to leading researchersand partners across Australia and is also a foundational industry partner inthe Deakin Recycling and Renewable Energy Commercialisation Hub as part of theCommonwealth Trailblazer University program that should result in close to $5million of additional funding over its four years."

"Movingforward we intend to expand our scientific team and to also engage FraunhoferIWS, Dresden, Germany to conduct complementary lithium-sulphur cell development& testing, and to develop additional manufacturing techniques. FraunhoferIWS is a pioneer in lithium-sulphur cell research and is highly respected inthe European battery industry. We foresee synergistic areas of IP and expertisewhere this collaboration has the potential to accelerate our path tocommercialisation.

"Havingassessed the detailed requirements of our target industries, we are nowfocusing our development strategy on the production of cells in the pouch cellformat. Pouch cells offer the potential for higher cell gravimetric energydensity as we can minimise “inactive materials” such as the weight of cellcasings and electrodes, so reducing the overall weight of the cell. Pouch cellsalso give an advantage to battery pack designers to use optimised rectangularpack dimensions, each with a reduced connection complexity due to fewer, largercapacity cells being needed. Cylinder cells, by contrast, require the use ofmetal alloy cylinder cases, metal end caps & connectors which encaserelatively small volumes of active material, this “dead weight” reducing overallcell energy density. From a volumetric energy density perspective, cylindricalcells inevitably increase the overall volume of a battery pack due to voidsbetween the stacked cylinder cells. Many EV manufacturers avoid the use of thecylinder cell format for these reasons. We note that if a requirement forcylinder cells arises in the future, the company expects to be able to adaptits cell production capability through the purchase of commercially availablecylinder cell production equipment. We recognise that flexible battery formatsare of interest in certain niche markets, however we believe our priority andfocus needs to be on pouch cells at this stage of our commercialisation journeydue to the far larger market potential of this format."

Positive report, great to see LIS taking the best route to commercialisation!! (Also a great link, LIS/PPK/WGL....see PPK forum)

IMO DYOR