Aussie battery maker Redflow goes into administration

Redflow Ltd (ASX:RFX), an Australian company focused on zinc-bromine flow batteries, has entered into voluntary administration after unfruitful attempts to secure capital to scale up its X10 battery.

The Brisbane-based company, which has spent a decade working on its flow battery technology, has called administrators from Deloitte to conduct a thorough review and assessment of its business and determine its future. According to a bourse filing on Friday, the trading of the company’s stock will be suspended during the administration process and shareholders will not be able to transfer stock.

Redflow aims to launch a large MWh-scale version of its battery based on its existing stack design, known as X10, and has been working to secure financing to support the plan. After “significant commercial interest” in the solution, it proposed to build a new factory to make those batteries in Queensland.

Over the past nine months, Redflow has been in contact with state and federal governments and received confirmation that they can make available funds to support its project. In order to access the funds, however, it had to secure significant “matching funding” from the Australian capital markets. Those attempts were unsuccessful.

“Based on encouraging external financial advice, Redflow considered and pursued the equity funding sources available to it but, in the current market has been unable to attract the required equity support,” the company said.

(AUD 1.0 = USD 0.678/EUR 0.606)

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