This ASX battery share just rocketed 49%. Here's why

The US state of California is a leading supporter of non-lithium battery technologies.

| More on:
Man pointing at a blue rising share price graph.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • The RedFlow share price is rocketing today
  • The ASX share announced the approval of a battery project in California
  • RedFlow expects to achieve $12 million in revenue from the project

ASX battery share RedFlow Ltd (ASX: RFX) is off to the races today on news out of the United States.

And it has nothing to do with the resolution of the US debt ceiling crisis.

At the time of writing the RedFlow share price is up 43%, trading for 26 cents per share, having earlier posted gains of 49%.

Created with Highcharts 11.4.3RedFlow PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

(*Note, that big dip in late November represents a share split.)

Here's what's driving investor interest in this ASX share today.

What's lifting the ASX battery share?

The RedFlow share price is soaring after the company reported its scalable and sustainable flow batteries were approved for use in a large-scale solar and storage project in the United States.

The project will provide power for the Paskenta Band of Nomlaki Indians, located in California. The California Energy Commission (CEC) is providing the funding from part of its US$140 million long-duration energy storage grant program.

The ASX share is getting a big boost from management's expectations of some US$12 million in revenue from the project. This is expected to be paid progressively on commencement, delivery of batteries and completion of various milestones.

According to RedFlow, the 20 MWh long-duration energy storage system will be one of the largest zinc-based battery projects in the world. It's also the largest single sale and deployment of batteries globally RedFlow has achieved to date.

Commenting on the approval sending the ASX share rocketing today, RedFlow CEO Tim Harris said:

This 20 MWh project is one of several large-scale opportunities in our pipeline and represents the start of the next phase of our growth strategy, validating our focus on large-scale systems in the US and Australia.

Harris noted that the state of California "is leading the development and support of non-lithium technologies to achieve its net-zero goals".

Jonah Steinbuck, director of Energy Research and Development at CEC called the project "an important step in California's clean energy transition."

The 2,000 ZBM3 batteries will be manufactured in the company's ISO9001 accredited factory in Thailand.

Practical completion and commissioning of the system is expected in Q1 FY25.

RedFlow share price snapshot

With today's big boost factored in, the ASX share has recouped its 2023 losses to be up 20% year to date.

Motley Fool contributor Bernd Struben 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 Scott Phillips.

More on Share Gainers

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors saw another day of mild gains for the stock market this Thursday.

Read more »

Man looking happy and excited as he looks at his mobile phone.
Share Gainers

Why Champion Iron, Clarity Pharmaceuticals, St Barbara, and Woodside shares are charging higher today

These shares are having a good session today. But why are investors buying them?

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors panicked when the latest inflation figures came out today.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Mac Copper, Pro Medicus, Web Travel, and Yancoal shares are pushing higher today

These shares are having a good time on hump day. But why?

Read more »

Silhouettes of nine people climbing a steep mountain to the top at sunset, and helping each other along the way.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a pleasant Tuesday session for ASX investors today.

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Share Gainers

Why Boss Energy, Neuren, Strickland, and Vulcan shares are pushing higher today

These shares are having a better day than most today. But why?

Read more »

Woman holding gold bar and cheering.
Gold

Up 200% in 2025, guess which ASX gold stock is surging 11% again today

Investors are sending the ASX gold stock soaring again today. But why?

Read more »

Man with backpack spreading his arms out and soaking in the sun.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a volatile start to the week for the ASX share market...

Read more »