The Li-S Energy Ltd (ASX: LIS) share price is accelerating during Thursday morning trade. This comes after the lithium-sulphur battery company excited investors with a positive update to the ASX.
At the time of writing, Li-S Energy shares are swapping hands for $1.85, up 3.64%.
Image source: Boeing
Li-S Energy progress commercial opportunity
In today's statement, Li-S Energy advises it has signed a Memorandum of Agreement (MoA) with Insitu Pacific (Insitu). The latter is a wholly-owned subsidiary of global behemoth, Boeing Co (NYSE: BA).
Under the MoA, both parties will work together in developing Li-S Energy's battery technology into Insitu's uncrewed aircraft systems (UAS).
The batteries will undergo a number of tests to check they meet certain specifications before being put into production. This relates to adopting the same size, weight and power constraints as Insitu's UAS, and using the same payload space and connectors.
From there, a joint flight-testing campaign will take place at Insitu's test range in Queensland to demonstrate the improved performance.
If successful, this will place Insitu in a favourable position for contending numerous global small tactical UAS opportunities. In turn, this highlights a strong potential revenue stream for Li-S Energy.
Li-S Energy CEO Dr Lee Finniear commented:
We are very pleased to be working with one of most recognised names in the aviation industry. As the market for UAVs continues to accelerate with new applications and capabilities, battery weight and energy density has become one of the most critical factors for UAV performance.
We are looking forward to working with Insitu Pacific to demonstrate the benefits of Li-S Energy batteries in these applications.
About the Li-S Energy share price
Since the company's debut on the ASX boards at 85 cents, the Li-S Energy share price has doubled. The company's shares hit an all-time high of $3.05 on the day of listing (28 September 2021).
Based on today's price, Li-S Energy has a market capitalisation of roughly $268 million, with approximately 150 million shares on issue.
