News could drop from numerous areas. The upcoming announcement...

News could drop from numerous areas. The upcoming announcement surrounding prototype orders is what I expect to be the catalyst for a share price re-rate.

The Phase three plant will be ready shortly and in the coming months orders will be flowing from OEM’s and NDA partners. Engineering design to the cells will suit relevant partner requirements. Some of these orders we know will be for a minimum of 10,000 batteries per partner.

Li-S Energy has already carried out extensive research, modelling simulation, compliance assessments, diligent testing and independent validation. This enables partners to move straight into retrofitting the product and mitigates the need for any drawn out testing process.

“Once Phase 3 is operating we expect to derive operating IP and production data that is likely to assist battery manufacturers to understand processes and metrics to scale to full manufacture.” (2022 AGM)

Prototype orders will give the market:
1. Validation of the product
2. An indication of the level of interest through the sheer volume of orders, which gives confidence and trust
3. Importantly - Revenue

We know this next step towards commercialisation is only months away.

On the back of this we can expect a substantial SP re-rate.

IMO DYOR