Gelion Regulatory News (GELN)

30 September 2022

Gelion plc

("Gelion" or the "Company")

Gelion achieves a significant milestone with first industrial production of 'Endure' battery

Gelion (AIM: GELN), the Anglo-Australian battery storage innovator, today announces a significant milestone in delivering on its plans to take its non-lithium battery into industrial production.

Highlights

· Successfully established a pilot manufacturing plant at the lead-acid factory of its commercial partner Battery Energy Power Solutions Pty Ltd in Western Sydney, Australia.

· Pilot plant completed ahead of schedule with a 2MWh annual capacity. 

· Initial tests on the first batch of zinc-bromide batteries produced indicate that performance will meet current pilot customer requirements.

· The first battery production run will be exported to Acciona Energia in Spain, as announced in February 2022.

Gelion is now strongly positioned to deliver on its commercialisation strategy. This go-to-market strategy has come at a vital time as recent price rises of lithium batteries is driving customers and policy makers to seek alternative batteries, such as Gelion's zinc-bromide chemistry.

This Gelion pilot manufacturing plant is an end-to-end line with a repeatable manufacturing process, re-using more than 70% of the standard lead acid battery production processes. It provides a proven basis for the commercial scale up of Gelion's manufacturing capacity.

CEO Hannah McCaughey commented: "We are delighted to have reached the point of first industrial production of our breakthrough Endure battery proving that our unique and market leading battery can be produced at commercial levels with standard industrial processes in partnership with lead acid battery manufacturers. Our game changing technology is coming to market at the right time given the global energy crisis resulting in increased demand and an urgent need to find alternative solutions to the current incumbent technologies." 

First Commercial Production of Endure Battery

This is a significant step for Gelion as it moves from laboratory testing into scaled industrial production. Gelion's zinc-bromide battery is non-lithium with six to 12 hours of energy storage and is critical to deliver high penetration of renewables. The battery is designed to fit standard lead acid racks, which supports the Gelion industrial design process and leverages existing supply chains.

The battery storage system has been made from industrially produced cells and includes a Battery Management System (BMS) that will ensure extended battery life-time and service multiple applications, such as stand-alone power systems, grid stabilisation and renewable firming.

Acciona Energia Testing

Initial production at the new plant will be used in the Acciona Energia contract trial as announced in February 2022. The Acciona trial will be undertaken in two phases. Phase 1 includes the initial virtual simulation trial in October 2022 including battery testing, characterisation and in-field simulation. Phase 2 involves an onsite trial in Spain in May 2023. If the onsite trial is successful, the Endure battery will become part of Acciona's supplier portfolio as a renewable energy storage provider.

Further Potential Commercial Partnerships

Gelion has undertaken a significant amount of work in planning for the scaled-up production of Endure to meet growing customer demand. Furthermore, Gelion and Battery Energy Power Solutions is experiencing significant interest from companies in the energy, resource, mining as well as oil & gas sectors resulting in advanced discussions with various global players for trials, off-takes and partnerships.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE MARKET ABUSE REGULATION EU NO. 596/2014, AS RETAINED AND APPLICABLE IN THE UK PURSUANT TO S3 OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 (AS AMENDED). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

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About Gelion plc

Gelion ("gel: ion") is a global renewable-energy storage innovator who supports the transition to a sustainable economy while delivering value for its customers and investors by designing and manufacturing the outstanding zinc-bromide batteries for stationary energy storage and additives for mobile battery applications.

Stationary storage - Gelion Endure: the sustainable energy storage solution

Gelion has developed patented technology for a breakthrough zinc-bromide battery to support the transition to a carbon neutral economy by 2050. The technology is a low-cost, robust, safe and recyclable alternative to lithium-ion and lead-acid batteries making them ideally suited for the expanding energy storage market.

Gelion's zinc-bromide gel battery uses non-flow technology, which is scalable, can deliver 100% depth of discharge and has a higher temperature tolerance and longer duration discharge than competing lead-acid and lithium-ion batteries. With applications at grid scale as well as behind the meter C&I, the battery solution is also highly adaptable for off-grid use.

Mobile storage - Tomorrow's transport systems will rely on mobile renewable energy.

Gelion is also developing performance additives to improve the safety, longevity and energy density of lithium-based batteries for mobile applications. Using nanotechnology, Gelion's lithium-silicon lithium-sulfur additives will help power the EV and e-aviation markets.

Gelion was spun-out from the University of Sydney in 2015 by Professor Thomas Maschmeyer, Fellow of the Australian Academy of Science and recipient of the Australian Prime Minister's Prize for Innovation 2020, that country's highest honour for scientific entrepreneurship.

The Company's ESG credentials are strongly aligned to six of the UN's 17 Sustainable Development Goals.

Gelion's shares are listed on the AIM market of the London Stock Exchange and it received the Green Economy Mark at IPO in November 2021 recognising its commitment to energy transition.