REG - Gelion PLC - Zinc battery solution and Lithium Sulfur update

GelionAnnouncement

06/07/2023 07:00

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RNS Number : 1792F  Gelion PLC  06 July 2023

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REGULATION 2014/596/EU AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE
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6 July 2023

Gelion plc

("Gelion" or the "Company")

 

Zinc Bromide Cell Research Programme and Lithium Sulfur development update

Strong technological advances made for both Gelion technologies - Zinc Battery
Solution and Lithium Sulfur

 

Gelion (AIM: GELN), the Anglo-Australian battery innovator, is pleased to
provide an update on the strategic evaluation of its Zinc battery solution and
on advances made on its Lithium Sulfur technology.

 

HIGHLIGHTS

 

Zinc Battery Solution

 

·    The Company's match to market analysis to define the operational
parameters of Gelion's zinc bromide ('ZnBr(2)') battery highlighted the need
to balance three key priorities - safety, energy density and cost and
consistent with this, the 12-month ZnBr(2) research programme ("R&D
Programme") was launched earlier this year.

·    Strong early progress has been made on the anode side, with
significantly improved zinc plating behaviour, achieving improved system
behaviour (reducing and potentially eliminating the need to fully discharge
the battery periodically for maintenance), however, the R&D Programme also
identified potential safety concerns on the cathode side, arising from
efficacy of the approach of sequestering bromine in the battery.

·    Gelion continued R&D for the cathode, and it has now identified
and is migrating to a zinc solution that avoids the potential safety concerns
arising from sequestering bromine. Successful validation is expected to result
in a technology with safety, energy density and cost ambitions achieved at the
same time.

·    Gelion expects to validate the potential of this technology over the
next six months and report back in early 2024, keeping in line with the
timelines communicated for the current R&D Programme.

·    Management believes that this solution is highly desirable to
Gelion's end market and will accelerate Gelion's ability to scale-up into
commercial production.

 

Lithium Sulfur

 

·    Management is encouraged by the progress being made toward realising
the potential of intellectual property packages acquired from Johnson Matthey
when combined with Gelion's existing technologies.

·    Gelion therefore intends to increase the testing capacity of its
research and development facilities in this regard by 50%.

·    Based in Sydney, the site will have the capability to increase
Gelion's prototyping toward cell development and is due to be operational in
September 2023.

 

Commenting on the update, John Wood, CEO said: "Since joining Gelion, a key
priority has been to understand how we could best adapt our Company's
outstanding technology capabilities to meet industry requirements. This work
has progressed at pace and the conclusions are exciting. We are confident that
the migration of our Zinc technology path takes us to where our solutions will
be safe and cost effective, with energy densities suitable for applications in
the ecosystem surrounding lead acid today as intended. Satisfying all three
requirements is extremely rare and we are confident that this will make our
solution highly desirable.

 

"On the Lithium Sulfur side, the understanding of the enormous potential for
Lithium Sulfur continues to be elevated in the industry and the marriage of
the recently acquired Johnson Matthey IP with our own activities strengthens
Gelion's position in this highly competitive field. This is why we have
decided to expand our testing facility resulting in increased capacity to
ensure we optimise development of this product for the rapidly growing
market."

 

Zinc Battery Solution

 

On 16 March 2023, the Company announced that the match to market analysis had
highlighted areas where further refinement was required in Gelion's technology
to meet the primary key requirements of potential end customers - namely,
safety, energy density and cost. To date, paths are available to satisfy two
of these needs but satisfying all three together has been elusive for market
participants.

 

For Gelion, further research into the particular prismatic format zinc bromide
technology approach identified that the bromine sequestered as part of the
cathode composition could compromise its safety under certain circumstances of
duress e.g., external fire. In addition, research indicated that the zinc
plating in the anodes was exhibiting dendritic growth which required the
Company to operate systems with periodic maintenance to strip the anodes (by
discharging the cell to zero) in turn compromising the performance and cost
efficiency of the battery system solutions.

 

Gelion is pleased to report that it has now resolved a path toward resolving
both issues thereby offering paths to enhanced safety, improved cost and
either matching or exceeding our current energy density.

 

In relation to the bromine sequestration, Gelion has determined that the
Company's ability to improve the safety of the existing battery will come at a
cost of reduced energy density that will be below an industry-tolerable
standard and resolving these will require a further lengthy research and
capital expenditure plan. Accordingly, Gelion is adapting its technological
solution to comprise a zinc cell with an alternate cathode technology (which
does not utilise bromine). Early testing indicates that this solution has the
potential to maintain the at least the same, if not more, energy density level
as the Company's existing zinc bromide solution but with enhanced cost and
safety aspects, making this a more compelling product. Gelion expects to
validate the potential of this technology over the next six months and report
back to shareholders in early 2024, keeping in line with the timelines
communicated for the current R&D Programme.

 

In relation to the anode stripping, Gelion has formulated a technology that
has diminished the dendritic growth and resulted in smoother zinc plating.
This means that users are not required to "strip" the battery after every few
cycles to replace the plating which in turn means that Gelion's batteries can
run for increased cycles. This has positive implications for both efficiency
and cost.

 

 

 

Lithium Sulfur

 

Further to the announcement of 25 May 2023, the Company has now received
sample electrodes corresponding to the technology package acquired from
Johnson Matthey earlier in the year. Gelion will now test these electrodes in
isolation before testing them in combination with Gelion's pre-existing
solutions.

 

The Company has continued to test its pre-existing technologies and has
defined a testing programme that will benchmark the solutions to industry
initiatives.

 

Given the strong progress in this area the Company intends to expand its
R&D facility in Sydney by 50%. This facility, due to be operational in
September 2023, will enable Gelion to accelerate its ability to formulate and
test the Group's Lithium Sulfur cell technologies.

 

CONTACTS

 

 Gelion plc                                                    via Alma PR

 John Wood, CEO

 Amit Gupta, CFO

 Thomas Maschmeyer, Founder and Principal Technology Advisor

 finnCap Ltd (Nominated Adviser and Sole Broker)               +44 207 220 0500
 Corporate Finance

 Christopher Raggett

 Seamus Fricker

 Fergus Sullivan

 ECM

 Barney Hayward

 Alma PR (Financial PR Adviser)                                +44 20 3405 0205

 Justine James                                                 gelion@almapr.co.uk

 Hannah Campbell

 Will Ellis Hancock

 

 

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