Queensland energy storage manufacturer RedEarth has secured almost $5 million in investments that the company hopes will support the emergence of locally manufactured battery systems into the Australian market.
RedEarth, founded in 2013, produces battery storage systems at a range of scales, including residential battery storage systems through to containerised systems for commercial and industrial uses at its Brisbane headquarters.
The company says it is targeting annual sales of more than $70 million over the next four years.
On Tuesday, it announced it has secured $4.75 million in series A funding from the Queensland Government Business Development fund, along with a mix of institutional and private investors.
The $80 million Queensland Government Business Development fund has been established by the Queensland Government to support the companies to bring modern, cutting edge, technologies to the market and has previously invested in Queensland based fast-charging electric vehicle technology company Tritium.
“This funding marks the first step towards growing RedEarth into a sustainable and profitable Australian business in an emerging market that until now has been dominated by foreign companies with foreign products,” RedEarth co-founder Charles Walker said.
“By 2050, it’s expected that solar and wind will supply almost half of the world’s electricity making the demand for energy storage systems greater than ever before. We are proud to be one of the first companies designing and manufacturing high-quality solar battery solutions right here in Australia.
“In the next year alone, it is estimated more than 70,000 Australian households will install batteries, as rooftop solar continues to boom and more families and businesses look way for ways to reduce their energy costs,” Walker added.
RedEarth’s technology development is led by the company’s CTO Chris Winter who served as one of the founders of another listed and Australian based battery producer, RedFlow.
The deal is the latest in a range of investments in building Australian based battery production capabilities seeking to take advantage of surging demand for energy storage.
In May, Lithium Australia signed a letter of understanding with major Chinese battery manufacturer DLG Battery, that will align the two companies activities in lithium extraction and battery production to boost the supply of battery components and systems into the Australian market.
Publicly listed Redflow energy raised $7.5 million through a placement on the Australian Stock Exchange, to fuel the company’s expansion into the Asian market. Redflow has concentrated its efforts on the development of zinc-bromine flow batteries, but has faced stiff competition from lithium-based battery technologies that have achieved dramatic reductions in technology costs.
Last year, Bloomberg New Energy Finance forecast that the global energy storage market could represent a $1.7 trillion market, as the costs of energy storage systems continue to fall, and their ability to provide crucial network support services, particularly in light of growing variable renewable energy adoption.
Australia was singled out as a potential leader in the global energy storage market, reflecting both the leadership shown in technology development and the pivotal rule it will play, and arguably already is playing, in supporting Australia’s energy system