Analyst Firm Cites Altech’s ‘Revolutionary’ Battery Tech as Basis for Valuation Upside

Description:

Australian analyst firm East Coast Research has given Altech Batteries (ASX:ATC,FRA:A3Y) a valuation range of AU$0.15 to AU$0.21 cents per share, a 188.8 percent upside from its current share price of $0.06 cents. This is based on Altech’s highly promising Silumina Anodes battery technology project.

Based in Perth, Australia, Altech is advancing the commercialization of two groundbreaking battery technologies in Germany: the Silumina Anodes and the CERENERGY batteries. The Silumina Anodes boost the energy capacity of lithium-ion batteries by combining silicon particles with regular battery grade graphite, producing an electrode that can hold 30 percent more energy than conventional graphite-only anode.

CERENERGY, meanwhile, is designed for the grid storage battery market, with a lifespan of almost twice that of lithium-ion batteries and less production cost.

Altech’s battery materials pilot plant in Germany

East Coast Research’s valuation of Altech is only based on the value of the Silumina project and does not take into account the valuation from the CERENERGY project, which can also offer a significant upside potential on the company’s valuation.

“Although still speculative from an investing point of view, Altech’s revolutionary projects put it among the pioneers in commercialising innovative battery technologies, which are in soaring demand as the global push towards decarbonisation of economies continues to change the way we live,” the East Coast Research report said.

Highlights of the report:

• The Silumina Anode technology boosts lithium-ion batteries’ energy capacity. Due to the escalating demand for EVs and the rivalry between EV manufacturers to produce higher range EVs, Research Nester projects the silicon-based anode market to experience a compound annual growth rate (CAGR) of approximately 48 percent from 2024 to 2036, reaching a massive size of US$137 billion by the end of 2036.
• The CERENERGY solid state battery technology’s high potential in the growing grid storage market. This low-cost technology addresses some of the challenges currently present in lithium-ion batteries, such as flammability, limited voltage and poor cycling performance. As the expanding renewable energy market results in a rising demand for more grid storage capacities, the worldwide market for battery energy storage is projected to grow by a CAGR of more than 30 percent by 2028.
• East Coast Research analysts believe that achieving several key milestones will enable a re-rating on Altech’s stock and increase shareholder value. These milestones include: 1) successful offtake agreements for Silumina Anodes products; 2) successful debt funding from green bond markets and/or from government grants; 3) the announcement of the definitive feasibility study for the CERENERGY Batteries project; and 4) timely achievement of the company’s planned milestones.

For the full analyst report, click here.

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