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Li-S Energy and UK firm testing lithium-sulfur batteries in unmanned submarines

ASX News, Materials
ASX:LIS      MCAP $88.30M
03 December 2025 12:20 (AEDT)
Submarine drone concept

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Li-S Energy (ASX:LIS) has teamed up with a U.K.-based engineering firm called Marlin Subs (MSubs for short) with a view to testing LIS’s lithium-sulphur chemistry batteries in pressurised underwater environments for submarines.

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LIS has this year been studying the impact of its LIS batteries in small unmanned aerial drones, where the company has been keen to test its battery formulation against lithium-ion and other competitor products in a bid to show that LIS batteries can offer superior operational durations.

A cursory assessment of MSubs’ website suggests the U.K. company is not manufacturing small underwater drones but, while unmanned, larger, fleshed-out vessels, including repurposed Lockheed Martin hulls.

While it’s early days for LIS and MSubs, it does suggest LIS may be targeting bigger fish down the line – it nearly goes without saying, the lucrative defence market.

MSubs already does work for the U.K. defence ministry and the U.S. Navy. At the same time, underwater drones – often overlooked as Ukrainian and Russian soldiers blow each other up with explosive-laden aerial drones – are an emerging (well, decades-old by this point) type of drone asset of increasing interest to militaries everywhere.

(Fun fact: Anduril Industries is currently advancing the Australian military’s ‘Ghost Shark’ underwater drone program, which is exactly what it sounds like – unmanned smaller-end-of-things submarine models which can be used for spying, jamming, or loaded up with bombs.)

“Testing our lithium-sulfur batteries under deep-ocean simulated conditions will provide valuable insight into how our technology performs in one of the most demanding environments imaginable,” LIS CEO Dr Lee Finniear said.

“The near-neutral buoyancy and lightweight nature of our cells make them particularly well-suited for undersea applications, and we look forward to working with MSubs to drive adoption in this new operating domain.”

LIS last traded at 15cps.

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