Altech Batteries

Investor Insight

An innovative technology that promises positive economics places Altech Batteries in a compelling position to take advantage of a booming batteries market driven by global electrification and clean energy transition.

Overview

Altech Batteries (ASX:ATC,FRA:A3Y) is a battery technology company focused on commercialising the revolutionary CERENERGY® Sodium-Chloride Solid State (SCSS) Battery, destined for the renewable energy grid storage market. The SCSS Battery does not require lithium, cobalt, copper, graphite or manganese, bypassing these high-demand and expensive minerals, and leverages a novel sodium-chloride (common table salt) technology to produce a more durable and longer-lasting battery. This new battery uses cheaper and readily available sodium rather than the more scarce, costly and risky lithium. Altech is headed by an experienced team who understands what it takes to bring transformative technology to market.

That's not all Altech has going for it, either. Unlike other energy storage options, the company's new SCSS Battery technology promises to solve many issues associated with traditional lithium batteries, including fire and explosion risks, manufacturing costs, operating temperature ranges and lifespans.

The reality is simple: Lithium-ion batteries have been susceptible to fire and explosions and have even malfunctioned in certain temperatures – all critical issues that must be solved to ensure long-term sustainability.

CERENERGY® batteries solve these challenges. For example, they do not contain any volatile flammable electrolytes or plastic separators, and they use solid-state ceramic tubes. Simply put, the thermal runaway problem that's plaguing lithium-ion batteries is not possible with Altech's new battery technology.

Altech has a joint venture agreement with the German government battery institute Fraunhofer IKTS, which has been developing the CERENERGY® battery over the past eight years and invested over €35 million (~US$39.7 million) in research and development. Altech is commercialising the technology by providing expertise and resources to build a new 120-MWh-per-annum plant in Saxony, Germany, on Altech's land.

In 2024, the pilot line at Fraunhofer IKTS in Hermsdorf, Germany underwent a comprehensive redesign to facilitate the manufacturing of two ABS60 60 kWh battery prototypes. Innovative tools and machinery have been developed and implemented specifically for producing the battery cells required for the 60 kWh prototypes. The first ABS60 battery prototype is now online and operating successfully, passing all physical tests with great results.

As of April 2025, rigorous individual cell stress-testing conducted by Fraunhofer IKTS has confirmed the safety and operational robustness of the CERENERGY® technology under extreme conditions, including over-discharge, overcharge, high C-rates and elevated temperatures of up to 400°C.

Altech Batteries also released the results from a definitive feasibility study (DFS) conducted for the CERENERGY® project with an annual capacity of 120 MWh GridPacks. DFS showed a capital cost estimated at €156 million (US$170.15 million) with excellent project economics.

The CERENERGY® project is being developed by Altech Batteries GmbH (ABG) with 75 percent interest and joint venture partner Fraunhofer IKTS with 25 percent interest. ABG is 75 percent owned by Altech Batteries and Altech Advanced Materials AG (FSE).

Altech Batteries has executed several offtake agreements in 2024:

• Zweckverband Industriepark Schwarze Pumpe will purchase 30 MWh of energy storage capacity annually, consisting of 1 MWh GridPacks, for the first five years of production.
• Referenzkraftwerk Lausitz GmbH (RefLau), a joint venture between utility companies Enertrag SE and Energiequelle GmbH. RefLau will purchase 30 MWh of CERENERGY® energy storage capacity in the first year, then 32 MWh per year thereafter for the next four years of production. It was further agreed that Altech will purchase green electricity at competitive prices directly from the partners in the region for the planned production plant.
• Axsol GmbH (Axsol) is a leading, award-winning integrated renewable energy solutions provider. Altech has entered into an exclusive distribution agreement with Axsol to supply the western defence industry with CERENERGY® battery technology.

To address funding requirements, the company has executed a binding Bond Note Subscription Deed with major shareholder Deutsche Balaton AG, under which it candraw down up to €2.5 million (US$2.8 million) in cash in the form of interest-bearing Bearer Bonds. Altech is also in the process of selling its land in Johor to provide additional funding.