Australian battery company Redflow is raising $14.5 million in capital to fund sustainable delivery of its zinc-bromine flow batteries to high demand areas such as telecommunications.
Redflow’s capital-raising follows its May announcement of decisions from a strategic review, including prioritising sales to supply proven demand areas including mature telecommunications/industrial/commercial, remote/off-grid power and "weak-grid" market segments.
The company has also announced it will be transitioning battery production to South East Asia at a more appropriate manufacturing site to leverage proximity to proven markets and reduce supply chain costs, implementing a range of key battery cost-down projects to reduce delivered product manufacturing cost by at least 30% over the next 18 months, and targeting sustainable cashflow-positive operations by the end of 2018.
Redflow (ASX: RFX) executive chairman and chief executive Simon Hackett said the strategic review had determined the best forward operating stance for the company.
{loadposition peter}“We have identified that the telecommunications sector has a strong, proven and ongoing demand for energy storage that fits the ‘sweet spot’ of Redflow’s unique value proposition. In May, Redflow recorded its largest sale to date, to an energy systems integrator working in the telecommunications and network power sector.
“At the same time, Redflow will continue supplying into its ZCell residential battery sales channel which is delivering our compelling energy storage solution for residential and SOHO customers, especially those located in off-grid areas or warm climates.”
Redflow chief operating officer Richard Aird said the process of disengaging from the company’s former manufacturing location was substantially complete.
“The activities Redflow is undertaking to transition manufacturing and to implement key product cost-down projects are critical to the future success of the company,” he said.
“Product deliveries will continue from built-up stock-on-hand and stock in transit ahead of the planned resumption of manufacturing in South-East Asia toward the end of this calendar year. Redflow staff are keen and committed to achieving the steps needed to maximise our prospects of future success.”