ENERGY company LWP Technologies (ASX:LWP) has raised $1.6 million to invest in battery technology that outstrips lithium-ion batteries.
The capital was raised through a tranche of 320 million new shares to institutional investors at 5 cents apiece.
The Brisbane-based company, which is developing a fly ash-based proppant for hydraulic fracturing of oil and gas wells, will invest the capital in GraphenEra.
As a joint venture between the company and Australian-based scientist Victor Volkov, GraphenEra plans to commercialise aluminium-graphene synthesis and battery technology. The solution has demonstrated stronger energy density compared to lithium-ion counterparts.
The technology will be licensed to electric vehicle manufacturers and battery suppliers - a market that is heavily investing in extending driving range while lowering charge times.
LWP Technologies chairman Siegfried Konig (pictured) says the funding will allow the company to fast-track a prototype before the end of the year.
"We are greatly encouraged by the strong institutional and high net worth demand we have had for this placement, which is a strong endorsement of LWP's decision to invest in this exciting and revolutionary battery technology," Konig says.
"While we remain committed to the ongoing commercialisation and licensing of our ceramic proppant technology, which remains on track, this investment provides LWP with a second unique disruptive energy technology and exposure to the rapidly growing global battery market for electric vehicle and battery energy storage sectors."
The inventor will focus on the development of the first of three patents in a six to 12 month timeframe, as well as deliver up to five fully-validated prototype batteries.
Both joint venture partners plan to license the graphene synthesis manufacturing process and the battery technology, before proceeding with the following two patents.
The board decided to launch a placement instead of utilising existing resources to maintain the company's strong cash position in challenging oil and gas market conditions.
The new shares are expected to be issued on June 24.
Get our daily business news
Sign up to our free email news updates.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support