“Cash crisis:” Australian battery hopeful collapses just days before launch of $500m grant scheme

Energy Renaissance, an Australian battery manufacturing hopeful with giga-scale ambitions for New South Wales coal country, has gone into voluntary administration following the withdrawal of a major investor.

Notices published by the Australia Securities and Investment Commission (ASIC) say administrators Stewart Free and Bradd Morelli from Jirsch Sutherland in Newcastle were appointed by the company on August 13, with a first meeting of creditors scheduled for August 22.

A statement from the administrators, shared with Renew Economy on Friday, says the “trigger” leading to their appointment was “the withdrawal of a major investor from a planned funding subscription program, which left the company in a cash crisis.”

“Our appointment was predicated on the withdrawal of a major investor, which left Energy Renaissance in a difficult financial position,” says Free, who adds that part of Jirsch Sutherland’s role will be to review whether there is any legal recourse available in relation to the investor’s actions.

The administrators also stress that their appointment is limited to the industrial battery manufacturing business – referred to in ASIC documentation as ER Industrial. Energy Renaissance’s IT and defence operations continue to operate as normal, they say.

“We are actively liaising with both state and federal governments to explore potential pathways forward,” says Free. “These may include recapitalisation or a merger to preserve the significant value and opportunities within the business.”

As RenewEconomy has reported, Energy Renaissance has been working on plans to build a gigawatt-scale battery factory in Australia since 2017, first looking to set up shop in Darwin, but ultimately landing in the Hunter Region of NSW.

The dream was to build the Southern Hemisphere’s first facility producing semi-solid state lithium-ion batteries, which Energy Renaissance described as “super tough” hot climate batteries that would suit commercial energy storage and use in heavy transport.

In September 2022, the company’s pilot plant in Tomago, backed the federal government’s Advanced Manufacturing Growth Centre (AMGC), successfully reached its goal of producing up to 4MWh of Australian-made batteries a month,

The success of the pilot project meant Energy Renaissance (ER) had met its funding milestone, a crucial step towards the launch of its 4,500 square metre, solar powered “Renaissance One” manufacturing plant, with the goal of producing up to 300MWh of batteries a year.

The completion of the pilot-facility program followed an earlier AMGC co-invested project where ER and CSIRO developed a proprietary battery system – a unique plug-and-play prismatic cell system combined with a CSIRO-developed, cyber secure battery management system.

“Just a few years ago we were told it wasn’t possible to manufacture in Australia,” ER founder and development director Brian Craighead said in 2022.

“Today, in the shadow of our soon-to-be-completed Renaissance One facility I can tell you that it is absolutely possible to manufacture in Australia.

“With the support of organisations such as AMGC and our partners, we have been able to develop a world-leading lithium-ion battery for domestic and export use and soon, we hope to expand the impact of this program to add value to Australia’s abundant raw materials by embarking on cell manufacture.”

The timing of the financial collapse of the battery maker, which prided itself on using local Newcastle suppliers and employing local, ex-coal industry workers, seems particularly cruel, considering this week’s launch of federal Labor’s $500 million dollar Battery Breakthrough Initiative.

In an interview with Renew Economy in May 2022, Craighead said that Energy Renaissance had been “spectacularly unsuccessful” at getting government backing for its plans to produce Australian made batteries.

“One thing we’ve been spectacularly unsuccessful at is actually getting support from government,” Craighead said at the time.

“In some ways, that’s fine; we’ve done it ourselves. …But we could be much further ahead. And so it’s a shame. … We could have been a four-year overnight success.”

In an interview published to mark Energy Renaissance’s 10-year anniversary, Craighead said one of the biggest hurdles to success had been competing with overseas manufacturers who coudl offer lower prices due to government-subsidised products and economies of scale.

“I want people to remember that ER represents the heart of Australian innovation and community spirit,” Craighead says in the interivew.

“When you choose ER, you’re not just buying a product but supporting a vision for a stronger, self-reliant Australia. We’re proof that world-class technology can be born right here at home – and that it’s safer, smarter, and built for the future.”

Renew Economy is seeking comment from Energy Renaissance.