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PPK Group: PowerPlus Energy Growth Analysis and Revenue Projections

Executive Summary

PPK Group Limited (ASX: PPK), through its majority-owned subsidiary PowerPlus Energy Pty Ltd (PPE), is positioned for significant growth in the Australian lithium battery market. PPE, Australia's largest privately owned lithium battery manufacturer, achieved approximately 50 MWh in battery deployments last year, generating around AUD 27 million in revenue based on historical financials. With a stated target of scaling to 200 MWh in the coming year, this report evaluates the feasibility of this ambition, driven by two key growth areas: subsidized home battery installations and a new telecommunications revenue stream via an exclusive partnership with RFI Technology Solutions. Leveraging government incentives and strategic alliances, this target appears achievable, potentially yielding AUD 100-150 million in revenue for PPE, assuming average wholesale pricing of AUD 500-750 per kWh. This could materially boost PPK's overall group revenue, which stood at AUD 12.24 million for the half-year ending December 31, 2024, with high growth momentum.

Company Overview

PPK Group invests in high-potential technologies, including advanced materials like Boron Nitride Nanotubes (BNNT) and energy storage solutions. A key asset is PowerPlus Energy, acquired in stages starting in 2023, with PPK holding a controlling interest (initially 51% for AUD 1.8 million, with subsequent investments). PPE specializes in Lithium Iron Phosphate (LiFePO4) batteries, designed for high-reliability applications in remote, harsh environments, such as telecommunications backup, off-grid systems, and residential storage. These batteries offer superior efficiency, longevity, and performance compared to traditional lead-acid alternatives, with a focus on Australian-made quality.

In FY2024, PPE contributed AUD 27.47 million to PPK's group revenue (from May 2023 onward, with AUD 5.08 million in the initial two months). This aligns with the user's reference to 50 MWh in prior-year output, equating to roughly AUD 550 per kWh in average realized pricing—consistent with industry wholesale ranges for LiFePO4 systems in Australia.

PPK's broader group reported trailing 12-month revenue of AUD 15.7 million as of December 2024, with a half-year figure of AUD 12.24 million reflecting 2,532% growth, underscoring the transformative impact of PPE. The company continues to optimize costs and expand pipelines amid a competitive market.

Recent Developments and Growth Drivers

PPE is gaining traction in two primary segments, as highlighted in the provided announcement:

1. Home Battery Market with Government Funding:
   • The Australian government's Cheaper Home Batteries (CHB) Program, launched July 1, 2025, provides a ~30% discount (equivalent to AUD 372 per kWh of usable capacity) on eligible solar-connected batteries, fully funded via small-scale technology certificates (STCs). This incentive applies to homes, small businesses, and community groups, with installations post-July 2025 qualifying.
   • The program has triggered an "off the charts" surge in demand, with projections for 220,000 home battery installations in 2025 alone—potentially adding 2,200 MWh of capacity (assuming 10 kWh per system average, although currently 17.3 kWh avg is confirmed). Over 2025-2030, the market could exceed one million batteries, unlocking a multi-billion-dollar opportunity.
   • PPE has launched CHB-aligned products, positioning it to capture market share as Australia's leading domestic manufacturer. States like NSW are stacking incentives (up to AUD 1,500 additional), amplifying uptake.
2. Telecommunications Revenue Stream with RFI Partnership:
   • In June 2025, PPE announced an exclusive partnership with RFI Technology Solutions to distribute the LiNET4835, a cutting-edge LiFePO4 battery tailored for telecom backup in remote and mission-critical environments. This addresses the need for reliable, high-capacity energy storage beyond traditional lead-acid batteries, with superior longevity and performance.
   • RFI, a key player in radio and telecom solutions, enables PPE to access a broader professional network, supporting scalable deployments in Australia's vast, harsh terrains. The partnership has been hailed as a milestone, reflecting shared commitments to innovation.

These developments build on PPE's one-month market presence for the LiNET4835, with ongoing excitement around uptake, as noted in the announcement.

Feasibility of Scaling from 50 MWh to 200 MWh

Scaling output 4x in one year is ambitious but feasible given market dynamics:

• Market Growth: Australia's battery storage sector is booming, driven by solar integration and energy transition goals. The CHB program alone could triple annual home battery installations from 2024 levels, with PPE well-placed as a local supplier. Telecom demand remains steady, with RFI's distribution expanding reach.
• Operational Capacity: PPE has focused on cost reductions and pipeline growth, operating in a competitive yet expanding market. As a manufacturer, scaling production is viable with increased orders, supported by PPK's investments in technology commercialization.
• Challenges and Risks: Supply chain constraints for lithium components, competition from imports, and economic factors could hinder progress. However, domestic manufacturing advantages (e.g., quality assurance, lower shipping) and subsidies mitigate these.

Overall, with the subsidy unlocking massive demand and the RFI partnership opening new channels, achieving 200 MWh is realistic, representing ~9% of projected 2025 home battery market capacity alone if PPE captures a modest share.

Revenue Projections

Assuming average wholesale pricing for LiFePO4 batteries in Australia:

Scenario	Price per kWh (AUD)	200 MWh Revenue (AUD Million)	Key Assumptions
Low	500	100	Conservative wholesale, post-subsidy compression; aligns with global lows of ~USD 139/kWh adjusted for Australia.
Base	600	120	Matches historical PPE realization (~AUD 550/kWh from 50 MWh yielding AUD 27M); commercial installed costs AUD 280-580/kWh.
High	750	150	Premium pricing for telecom/specialized units; retail averages AUD 700-900/kWh, subsidy at AUD 372/kWh implies higher base costs.

These projections exclude installation/markup revenues but include potential volume discounts. At the base case, this would represent a ~4x revenue uplift for PPE from FY2024 levels, significantly enhancing PPK's group performance (current TTM AUD 15.7M). Additional upside could come from defense/aviation applications, targeting AUD 50-100 million annually longer-term.

Conclusion and Recommendations

PPK Group's PowerPlus Energy is at an inflection point, with government subsidies and the RFI partnership catalyzing growth in home and telecom segments. Scaling to 200 MWh is achievable and could deliver AUD 100-150 million in revenue, driving shareholder value. Investors should monitor quarterly updates for deployment metrics and cost controls. PPK remains a compelling play in Australia's clean energy transition, with diversified tech exposure beyond batteries.