Li-S Energy (ASX:LIS) share price stalls despite 'enviable' battery opportunity

Li-S Energy has ambitious plans to disrupt the lithium-ion battery industry.

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The newly listed Li-S Energy Ltd (ASX: LIS) share price is flat in afternoon trade, trading at $2.30 apiece. This follows the release of the company's annual report this morning.

While the announcement isn't marked as price-sensitive, it does shed light on some of the company's near-term goals and strategic priorities.

The Li-S Energy share price had a listing price of just 85 cents and surged to highs of $3.05 on its ASX debut on 28 September.

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Li-S annual report highlights

Li-S Energy has developed a novel battery technology that has the potential to substantially increase the life cycle of lithium-sulphur (Li-S) batteries.

Li-S batteries have the potential to provide much greater energy storage capacity than traditional lithium-ion batteries. However, its main drawback is that it tends to fail after a few charging cycles, limiting its commercial adoption.

The company has so far achieved test batteries that have demonstrated a sustained performance over 600 charge/recharge cycles whilst retaining an energy capacity almost three times that of lithium-ion batteries.

Looking ahead, Li-S Energy aims to continue to optimise the cycle life of lithium-sulphur batteries to expand its commercial use-cases and increase its total addressable market.

To maximise its total addressable market and the speed of adoption, Li-S Energy aims to produce its batteries in common formats such as pouch, cylinder and coin cells. This would enable applications industries such as phones and wearable devices such as headphones or smartwatches.

A major driver behind the Li-S Energy share price is the hype behind the lithium and electric vehicle industry.

According to the annual report, the company "intends to collaborate with product original equipment manufacturers (OEMs) in key markets."

"The Company intends to use these early stage results to advance commercial discussions with product OEMs and battery manufacturers," it added.

Li-S Energy share price so far

The Li-S Energy share price briefly hit highs of $3.05 on its first day of listing, before sliding almost 40% to a low of $1.82 just three days later.

It has so far managed to climb back to the low $2, level but struggles to hold above $2.50.

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned.  The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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