Australian battery storage company Redflow has announced a planned $18.1 million equity fund raising to help it scale up production of its zinc bromine “flow” batteries, and also grow sales in Australia and overseas.
The fund-raising will be made through a combination of a private placement to new investors, and a fully underwritten rights issue to current shareholders. Simon Hackett, currently the biggest shareholder, will take up his full $1.8 million allocation, and new CEO Tim Harris will also invest.
The company recently opened its new manufacturing facility in Thailand, and now aims to produce as many as 90 batteries a month by June, and scale this up to 250 batteries a month by December, subject to demand.
Redflow Chairman Brett Johnson said the company now intended to use the new funds to target the international energy storage market.
It is targeting Asia, Africa and Australasia for its ZBM2 and ZCell zinc-bromine flow batteries and telecommunications, commercial & industrial and high-value and off-grid residential energy storage applications.
“This growth strategy will include the identification of potential sales, marketing and manufacturing joint venture partners,” he said in a statement. “We are also focused on continued reduction in the manufacturing cost of the Redflow battery.”
The equity raising includes $7.5 million through a placement to new investors and a further $10.6 million through a fully underwritten non-renounceable entitlement offer to all current shareholders.
“To date, shareholders have invested in development of the Redflow battery and in the creation of a manufacturing facility,” Johnson said.
“We believe we are positioned now to transition from a research & development company into a fully operational manufacturing, sales, marketing and product support organisation.”
Johnson said Redflow is also considering the Chinese market, after being approach by several Chinese entities.
“China is forecast to be one of the largest single markets for energy storage, accounting for as much as 70 per cent of the Asia-Pacific market,” he said. “We will continue to engage with selected parties to assess potential partnership options.”