Redflow: Australian Energy Storage Business At A Tipping Point

We believe that Redflow is at a tipping point for its business in the very exciting market segment of energy storage. The company’s zinc-bromine battery has proven to be operationally robust and to hold some advantages over competing battery technologies, particularly in respect of temperature operating range, minimal self-discharge, depth of discharge and safety. Tesla and other lithium-ion battery suppliers are taking the lead in the sales effort to install batteries in the residential market. This is a positive for a small company like Redflow, as it means the larger companies do the early “heavy lifting” to promote batteries. As the market matures, and consumers become more knowledgeable, Redflow’s zinc bromine battery should have a very strong market opportunity in Australia and overseas. We see clear scope for strong revenues during this immediate growth phase, with scenario analysis suggesting a 12–18 month price target in the range of A$0.41 – A$0.85. Our updated Colt note can be found here: (VIEW LINK)