Altech Batteries

Investor Insight

An innovative technology that promises positive economics place 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. Lastly, 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.

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 in research and development. Now, 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. The prototype was installed at Fraunhofer IKTS’ test laboratory in Dresden, Germany, and integrated into a specially designed battery station. This setup enables continuous daily charging and discharging cycles to assess the battery's efficiency, stability and overall performance under real-world conditions.

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:AMA).

Altech is moving forward to obtain sales offtake for the project and sourcing funding to construct the plant.

Company Highlights

• Altech Batteries is a battery technology company commercialising its revolutionary CERENERGY® Sodium-Chloride Solid State (SCSS) Battery that uses common table salt technology.
• Altech’s proprietary technology does not require lithium, cobalt, copper or graphite, eliminating cost, ethical, safety and supply chain issues.
• Compared to lithium-ion batteries, the CERENERGY® battery is fire and explosion-proof, is cheaper to manufacture, suitable in any temperature range and provides a greater lifespan.
• Altech has a joint venture agreement with Fraunhofer IKTS, the German Government’s Battery Institute that has been developing the SCSS technology for eight years with significant financial investment.
• The joint venture is building a new 120 MWh plant in Saxony, Germany to manufacture the new SCSS 1 MWh GridPack, designed for the lucrative and growing grid storage market.
• Additionally, Altech is building a pilot plant for its Silumina AnodesTM product, designed to improve lithium-ion batteries by providing a higher capacity anode for the EV market. This patented technology involves coating silicon and graphite with high-purity alumina, increasing the capacity of lithium-ion batteries by 30 percent compared to traditional graphite only anodes.
Through a Definitive Feasibility Study, Altech expanded the Silumina AnodesTM project output by eightfold, increasing the capacity from 15 gigawatt-hours (GWh) to 120 GWh.

Key Projects

CERENERGY® Sodium-Chloride Solid State Battery Project

Altech Batteries and Fraunhofer IKTS are currently commercialising the Sodium-Chloride Solid State (SCSS) battery technology, which uses sodium over lithium. It is a solution geared toward the renewable energy grid storage market, an often overlooked but significant market for the transition to renewable energy.

Project Highlights:

• Solves Major Issues with Lithium-Ion Batteries: We’ve seen challenges with lithium-ion batteries become news stories as these batteries experience thermal runaway or cannot operate outside an ideal temperature range. CERENERGY® battery technology does not use combustible liquid electrolytes and has a significantly improved temperature range of -40 to 60 degrees Celsius.
• Impressive Shelf Life and Operating Life: Unlike lithium-ion batteries, the CERENERGY® battery does not use a liquid electrolyte, meaning it does not deteriorate over time; there is no loss of sodium. CERENERGY® batteries have extended shelf life compared to lithium-ion and an operating lifespan of over 15 years, which also exceeds lithium batteries.
• Pilot Plant and New GridPack Underway: Altech Batteries and Fraunhofer IKTS are now commercialising the technology with a new 100 MWh plant in Saxony. Additionally, Altech recently announced its new 1 MWh GridPack designed for grid storage. The new GridPack is suitable for all weather conditions, has low maintenance costs, and has a long battery life.
• Highly Positive DFS: The DFS excellent economics include:
  • Capital cost estimated at €156 million with excellent project economics
  • Pre-tax Net Present Value (NPV9) of €169 million
  • Attractive Internal Rate of Return (IRR) of 19 percent
  • Steady state payback period is 3.7 years, with annual revenue of €106 million per annum
  • EBITDA of €51 million or margin of around 47 percent
  • Altech Board Decision to Proceed to Funding Phase
  • Low lifetime levelised cost of storage €0.06/kWh vs lithium-ion batteries at €0.149/kWh
  • Grid energy storage market projected to grow by 28 percent CAGR
  • Grant funding applications underway
  • Equity and mezzanine financing discussions in progress

Silumina Anodes™ Pilot Plant

Altech Batteries has purchased the land in Saxony, Germany, for its 8,000-tpa proprietary Silumina AnodesTM battery materials plant. The plant has a completed pre-feasibility study with outstanding economics. The company strategically selected the plant’s location to serve the European battery market. The pilot plant will be built adjacent to the land.

Project Highlights:

• Plant Designed for Minimal Environmental Impact: The Centre of International Climate and Environmental Research (CICERO), located in Norway, has reviewed the plant’s design and awarded it the rating of “Medium Green.” This rating indicates that the project achieves ‘green’ financing.
• Feedstock Supply of Battery-Grade Anode Materials Secured: Altech Batteries has executed a Memorandum of Understanding (MoU) with two European suppliers of battery-grade materials: SGL Carbon and Ferroglobe.

Management Team

Luke Frederick Atkins - Non-executive Chairman

Luke Frederick Atkins is a lawyer by profession and one of the founders of the company. Atkins brings to the board extensive experience in the areas of mining, exploration and corporate governance. Atkins is also non-executive director of the successful ASX-listed mining and exploration company, Bauxite Resources (BRL) (now Australian Silica Quartz). Atkins formerly held the role of executive chairman of BRL after co-founding the company in 2007. He has played a key role in BRL third party negotiations to successfully access funding, joint venture partnerships, land and infrastructure. Atkins has had extensive experience in capital raising and has held some executive and non-executive directorships of private and publicly listed companies including several mining and exploration companies.

Iggy Tan - Managing Director

Iggy Tan is a highly experienced mining and chemical executive with several significant achievements in commercial mining projects such as capital raising, funding, construction, start-ups and operations. Tan has over 30 years of chemical and mining experience and has been an executive director of some ASX-listed companies. He holds a Master of Business Administration from the University of Southern Cross, a Bachelor of Science from the University of Western Australia, and a graduate of the Australian Institute of Company Directors.

Tan is responsible for managing and implementing the next stage of Altech’s strategic business objectives. Having been involved in the commissioning and start-up of seven resource projects in Australia and overseas, including high-purity technology projects, Tan is an accomplished project builder and developer.

He was the managing director of Nickelore, Galaxy Resources and Kogi Iron. At Galaxy, Tan was responsible for capital raising, construction and start-up of the company’s Mt Cattlin spodumene mine ($80 million) and the Jiangsu lithium carbonate plant ($100 million), which resulted in Galaxy becoming the world’s leading producer of high-purity lithium carbonate. The Jiangsu plant was eventually sold for $260 million in 2014.

Uwe Ahrens - Alternate Director

Uwe Ahrens is the executive director of Melewar Industrial Group Berhad and managing director of Melewar Integrated Engineering Sdn Bhd. He is also on the board of other private limited companies. Ahrens holds masters in both mechanical engineering and business administration from the Technical University Darmstadt, Germany. Upon graduation, Ahrens joined the international engineering and industrial plant supplier, KOCH Transporttechnik GmbH in Germany, now part of FLSmidth Group, where he held a senior management position for 12 years, working mainly in Germany, the USA and South Africa.

In 1997, Ahrens was the general manager of KOCH in South East Asia and became its managing director in 1999. He joined Melewar Group in 2002 and is also currently chief technical officer of the Melewar group of companies responsible for engineering, upgrading, modification and extension of machinery and plant, as well as the overall maintenance.

Martin Stein - Chief Financial Officer & Company Secretary

Martin Stein is a finance and corporate executive with over 20 years of international experience. Stein has been the chief financial officer and company secretary for several ASX-listed companies. In these roles, he was responsible for all aspects of capital raising, financial management, shareholder liaison and corporate governance.

Before this, Stein held senior positions with Anvil Mining as well as with PwC at its London office. Whilst with PwC, he provided corporate services for companies listed on the LSE, NYSE and AIM, including Colgate-Palmolive, Sony, Heinz, DHL Express and Bosch.