Li-S Energy (ASX:LIS) signed an agreement with Australian drone designer and manufacturer Safesky Systems targeting the supply of Li-S Energy's lithium sulfur batteries to power Safesky's fleet of tactical drones, according to a Friday Australian bourse filing.

The agreement establishes a framework for the two companies to jointly evaluate, test, and integrate the lithium sulfur cells and battery packs into Safesky platforms, progressing to commercial supply subject to the results.

The firms will evaluate lithium sulfur cells against the power and energy requirements of Safesky's platforms, build battery packs for integration, and conduct ground and flight testing. Initial design evaluation is expected to commence in the current quarter.

Li-S Energy's shares jumped nearly 15% in recent trading on Friday.