PPK recently spun off another battery company, Li-S Energy, which is developing a lightweight lithium-sulphur battery and said the two companies would be able to find synergies.

The one-third stake would cost PPK $1.8 million. It has the option to increase its stake to 75 per cent within two years for an extra $2.8 million.

PPK will also get two seats on the PowerPlus board.

PowerPlus started in 2017 and manufactures lithium ferro phosphate stationary storage batteries for a network of about 300 distributors and installers, predominantly in Victoria, NSW, Queensland and WA.

PPK chair Robin Levison said the storage market would play a key role in ensuring a reliable and efficient energy system.

“We see the PowerPlus Energy acquisition as a key step in supporting this shift,” Levison said.

“With the increases in electricity pricing, we expect continued growth for battery storage solutions.

“Given the adjacent expertise and roadmap at our Li-S investment, we expect collaboration opportunities with Li-S Energy in the future.”