Altech - To Commercialise 100MWh Sodium Alumina Solid State Batteries for Grid Storage

Altech Chemicals Limited (Altech/the Company) (ASX: ATC) (FRA: A3Y) is excited to announce that it has executed a Joint Venture Shareholders’ Agreement with world-leading German battery institute Fraunhofer IKTS (“IKTS”) to commercialize IKTS’ revolutionary CERENERGY® Sodium Alumina Solid State (SAS) Battery. Altech, inclusive of associated entity Altech Advanced Materials AG, will be the majority owner at 75% of the JV company, which will commercialize a 100 MWh project to be constructed on Altech’s land in Schwarze Pumpe, Germany. The SAS CERENERGY® battery uses common table salt and ceramic solidstate technology

Highlights

• Majority ownership (75%) of a joint venture with Fraunhofer IKTS
• 100 MWh Sodium Alumina Solid State (CERENERGY®) battery project in Saxony
• IKTS developed the technology over 8 years and is ready to commercialize
• €35 million spent on R&D and €25 million on operating pilot plant
• CERENERGY® batteries are fire and explosion proof
• Operates in extreme cold and desert climates
• Ultra-long life sometimes twice the lifespan of lithium-ion batteries
• Uses common salt instead of expensive lithium
• Lithium-free, graphite-free, copper-free, and cobalt free
• Pure solid-state technology for the electrolyte

The SAS technology has been developed by Fraunhofer IKTS over the last eight years and has revolutionized previous technology, allowing higher energy capacity and lower production costs. SAS-type batteries, in terms of capacity, have already been successfully tested in stationary battery modules. The IKTS SAS batteries are in the final phase of product testing and ready to commercialise. IKTS has spent in the region of EUR 35 million on research & development and operates a EUR 25 million pilot plant in Hermsdorf, Germany. The final CERENERGY® battery modules, at 10 KWh each, are specially designed for the grid storage market and have been undergoing extensive performance testing in Germany. These modules are designed to fit in racks housed in sea containers that can be deployed for grid storage.

For more information on the IKTS CERENERGY® pilot facility and final battery modules watch the following YouTube video https://youtu.be/UBwxxgEJHvo

IKTS has been looking for an entrepreneurial partner that has German land available, has access to funding, is a builder of projects, has battery background, and has technology in alumina used in ceramics. Altech fitted the criteria, and the Joint Venture Shareholders’ Agreement was executed. Altech group will own 75% of the project with IKTS 25% free carried. The intellectual property will be licensed exclusively to the joint venture.

The joint venture partners have elected to develop a 100 MWh SAS battery plant (Train 1) on Altech’s site in Saxony, Germany. The target market for this project will specifically focus on the grid (stationary) energy storage market which is expected to grow by 28% CAGR (Compound Annual Growth Rate) in the coming decades. The global grid energy storage market is expected to grow from USD 4.4 billion in 2022 to USD 15.1 billion by 2027. Or further out, the market is expected to grow from 20 GW in 2020 to over 3,000 GW by 2050. Altech believes that SAS batteries can provide high security, at low acquisition and operating costs, for the stationary energy storage market.

The proposed battery plant will produce 10,000 SAS battery modules per annum, rated at 10 KWh each. These SAS battery modules are expected to sell for between EUR 7,000-9,000 per module, or EUR 700- 900 per KWh, at final pack costs. IKTS has estimated that the total cost of production for CERENERGY® batteries will be 40%-50% cheaper than lithium-ion batteries.

The joint venture partners have commenced the planning process for the Bankable Feasibility Study required for the commercialisation process. Once the Train 1 (100 MWh) plant is built and operating, the longer-term vision for the joint venture is to construct additional trains or a Gigawatt battery facility