Altech Batteries

East Coast Research Altech Valuation Inches Higher as Analyst Firm adds CERENERGY to Model

Description

Australian analyst firm East Coast Research has updated its valuation for Altech Batteries (ASX:ATC,FRA:A3Y) to a slightly higher range, as it added Altech’s CERENERGY batteries project to its model.


In the initiation report from February 15, 2024, the company was valued at AU$0.15 per share in the base case and AU$0.21 per share in the bull case, based solely on the DCF valuation of Altech's Silumina AnodesTM Project. The addition of CERENERGY to the valuation model upgraded the valuation to range from AU$0.16 per share in the base case to AU$0.22 per share in the bull case.

“The observed marginal impact on our per-share target valuation range stems largely from Altech's ownership stake in the CERENERGY project being [75] percent and the fact that Fraunhofer's 25 percent stake in the project is free-carried, thus not contributing to project development costs. Our DCF model is broadly based on the assumptions of Silumina Anodes DFS and CERENERGY Battery DFS results and net of minority interests in both projects,” the East Coast Research Report stated.

Pilot manufacturing plant Pilot manufacturing plant Fraunhofer Hermsdorf

The key risks to the investment thesis, the report noted, include uptake, competition, exchange rate and funding risks.

Highlights of the report include:

    • Altech Batteries has completed a definitive feasibility study for its CERENERGY Batteries Project, revealing robust project economics and a pre-tax net present value (NPV9) of €169 million.
    • The company is actively engaged in the funding process for the CERENERGY Battery plant, with favorable prospects due to the project's alignment with Europe's commitment to renewable energy transition.
    • Altech has signed non-disclosure agreements with major utility conglomerates in Germany, indicating strong interest in its CERENERGY 1 MWh GridPack batteries.

    For the full analyst report, click here.

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    Altech Batteries Ltd Launch of Share Purchase Plan

    Perth, Australia (ABN Newswire) - Altech Batteries Ltd (ASX:ATC) (FRA:A3Y) (OTCMKTS:ALTHF) is delighted to announce the opportunity for eligible shareholders of the Company to participate in an equity raising via a Share Purchase Plan (SPP) to raise up to $5 million.

    Highlights

    - Share Purchase Plan (SPP) offered to raise working capital for CERENERGY(R) battery and Silumina AnodesTM battery materials projects

    - SPP at an issue price of $0.065 per share with one free attaching option for every two shares acquired

    - Options will be exercisable at $0.08 per share and will expire on 30 April 2026

    - Funds applied to commissioning of, and equipment for, Silumina AnodesTM pilot plant as well as to fabricate two CERENERGY(R) ABS60 60KWh battery packs

    - SPP follows excellent Definitive Feasibility Study for CERENERGY(R) project finalised on 20 March 2024 that included an NPV(9) of EUR169 million and free cash flow of EUR48 million p.a.

    - Altech continues to move forward with finance and offtake for CERENERGY(R) project

    The SPP follows the excellent Definitive Feasibility Study (DFS) for the CERENERGY(R) project which was finalised on 20 March 2024, that included an NPV(9) of EUR169 million and free cash flow of EUR48 million p.a. Following on from the DFS, Altech continues to move forward with obtaining the finance to construct the plant for the CERENERGY(R) battery project, envisaged to be constructed on Altech's land in Germany.

    CEO Iggy Tan stated "The results of the Definitive Feasibility Study reinforce the economic soundness and potential of our CERENERGY(R) project. We are excited about the positive trajectory and are fully committed to advancing to the funding phase to realise this innovative venture."

    The project's economics remain compelling, with an EBITDA margin of around 47%, even at its initial production capacity. This aligns with the projected growth of the grid storage market, estimated at a remarkable 28% Compound Annual Growth Rate (CAGR). Additionally, the project offers a low lifetime levelised cost of storage at EUR0.06/kWh, compared to EUR0.149/kWh for lithium-ion batteries, further enhancing its competitive advantage."

    Altech is providing all shareholders with the right to participate in a capital raising via an SPP to help fund further activities relating to the CERENERGY(R) battery project as well as the Silumina Anodes TM battery materials project. An SPP does not incur any brokerage, commission or other transaction costs for shareholders participating, and all funds received by Altech are able to be deployed directly by the Company to commercialise its technology. Altech encourages you to participate in this SPP and to continue the exciting journey that Altech is embarking on with its uniquely patented battery technology and battery materials.

    Altech is targeting the grid storage market, which is an industry that is expected to have a compound annual growth rate of 28%, as the world transitions from a fossil fuel economy to a renewable energy economy.

    Massive scale up and growth of both renewable energy production, combined with grid battery storage, is required to meet the green targets implemented by governments and industry around the world. Altech believes that the grid storage market is a very lucrative niche and is racing to get the CERENERGY(R) battery into production.

    The shares issued pursuant to the SPP will be at an issue price of $0.065 per share with one free attaching option for every two shares acquired. The options will be exercisable at $0.08 per share and will expire on 30 April 2026.

    Further details in relation to the SPP, including timing and terms and conditions, are included in the Prospectus available to all eligible shareholders.



    About Altech Batteries Ltd:

    Altech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns.

    The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market.

    News Provided by ABN Newswire via QuoteMedia

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    Altech Chemicals Ltd Interview with Fraunhofer's Professor Alexander Michaelis

    Perth, Australia (ABN Newswire) - Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is pleased to release an interview recently undertaken with the Head of Fraunhofer IKTS (Fraunhofer), Professor Dr. Alexander Michaelis. Fraunhofer is Altech's joint venture partner in the CERENERGY(R) Battery Project in Saxony, Germany. In the interview, Professor Michaelis discusses the ten-year history of Fraunhofer's development of CERENERGY(R) battery technology, as well as Fraunhofer's vision to create a safer, cheaper battery for the grid storage market. Professor Michaelis also discusses how Fraunhofer searched for a joint venture partner to commercialise its technology, and also discusses Fraunhofer's joint venture relationship with the Altech Group.

    On 14 September 2022, Altech announced a JV Agreement with world-leading German battery institute Fraunhofer to commercialise Fraunhofer's revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. Altech, together with associated entity Altech Advanced Material AG, is the majority owner at 75% of the JV company, which is commercialising a 100 MWh project to be constructed on Altech's land in Schwarze Pumpe, Germany. CERENERGY(R) batteries are the game-changing grid storage alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns. The Altech-Fraunhofer joint venture is developing a 100 MWh CERENERGY(R) battery plant on Altech's site in Saxony, Germany, specifically focussed on the grid (stationary) energy storage market.

    To watch the Video Interview, please visit:
    https://www.abnnewswire.net/lnk/9EL0N534



    About Altech Chemicals Ltd:

    Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (Al2O3) through the construction and operation of a 4,500tpa high purity alumina (HPA) processing plant at Johor, Malaysia. Feedstock for the plant will be sourced from the Company's 100%-owned kaolin deposit at Meckering, Western Australia and shipped to Malaysia.

    HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. Increasingly HPA is used by lithium-ion battery manufacturers as the coating on the battery's separator, which improves performance, longevity and safety of the battery. With global HPA demand approximately 19,000t (2018), it is estimated that this demand will grow at a compound annual growth rate (CAGR) of 30% (2018-2028); by 2028 HPA market demand will be approximately 272,000t, driven by the increasing adoption of LEDs worldwide as well as the demand for HPA by lithium-ion battery manufacturers to serve the surging electric vehicle market.

    News Provided by ABN Newswire via QuoteMedia

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    Altech Chemicals

    Altech Chemicals Ltd Launches CERENERGY 60KWh Battery Pack Design

    Perth, Australia (ABN Newswire) - Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is pleased to advise that, in relation to its battery joint venture with Fraunhofer, it has designed and launched the CERENERGY(R) Sodium Alumina Solid State (SAS) 60 KWh battery pack (ABS60) designed for the renewable energy and grid storage market.

    Based on preliminary discussions with potential off-takers for the 100MWh CERENERGY(R) battery project, the proposed battery module for 10 kilowatt-hours (KWh) has been superseded by a 60 kilowatt-hour (KWh) battery pack (ABS60) rated at a higher voltage of 620 volts and 100 amp hour (Ah). A video of the battery design can be seen on Altech web site www.altechchemicals.com or visit:
    https://www.abnnewswire.net/lnk/OH2K54FU

    On 14 September 2022, Altech announced a JV Agreement with world-leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise Fraunhofer's revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. Altech, together with associated Altech Advanced Material AG, will be the majority owner at 75% of the JV company, which will commercialise a 100 MWh project to be constructed on Altech's land in Schwarze Pumpe, Germany. CERENERGY(R) batteries are the gamechanging grid storage alternative to lithium-ion batteries.

    CERENERGY(R) batteries are fire and explosionproof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns. The Altech-Fraunhofer joint venture is developing a 100 MWh SAS battery plant (Train 1) on Altech's site in Saxony, Germany specifically focussed on the grid (stationary) energy storage market The ABS60 battery pack will consist of 240 CERENERGY(R) cells (rated at 2.5 V each) arranged in 4 rows of 12 cells, and 5 cell modules high. The battery packs will have a dimension of 2.6m high, 0.4m long and 1.0m in width. The packs are designed for Ingress Protection (IP) 65 standard (levels of sealing effectiveness of electrical enclosures) which means that they will be dust and weatherproof. The battery packs can be installed outdoors in all weather conditions.

    Since the CERENERGY(R) batteries can operate at a very wide temperature range, minus (-) 40 deg C to plus (+) 60 deg C, the battery pack will be ideal for the cold European climates. In addition, being fire-proof, the ABS60 battery packs will be safe to installed indoors where lithium-ion batteries are prohibited.

    The benefit of the larger ABS60 battery pack is that it will allow more efficient installation in renewable energy storage and grid storage applications. The larger packs will reduce module assembly casing and connecting costs. There is a cost advantage of using one Battery Management System (BMS) processor versus six BMS processors for the previously envisaged individual 10 KWh modules. The fuse and disconnectors will also be reduced by the same factor for a larger 60 KWh battery.

    The battery plant will now be designed to produce ABS60 battery packs as a standard product to meet Europe's renewable energy and grid storage market. Fraunhofer have previously estimated that the cost of producing CERENERGY(R) batteries should be in the region of 40% cheaper than lithium-ion batteries, primarily due to not requiring lithium, graphite, copper or cobalt. This will be confirmed in the Bankable Feasibility Study that Altech is currently undertaking.

    Renewable energy is being deployed around the globe. A new report shows renewable energy sources were used to meet the rise in global electricity demand in the first half of 2022. Forecast reports also show that the grid storage market is expected to grow by 28% CAGR in the coming decades. The global battery energy storage systems market is expected to grow from USD 4.4 billion in 2022 to USD 15.1 billion by 2027. Or further out, growth is expected from 20 GW in 2020 to over 3,000 GW by 2050. SAS batteries can provide high security at low acquisition and operating costs for stationary energy storage market.

    Combining wind and solar with battery storage offers many advantages. The Wheatridge Renewable Energy Project in Oregon is a typical example of how combining renewable energy sources with battery storage can help provide reliable, sustainable energy as utility companies look to reduce carbon emissions.

    In these kind of applications, large battery systems are installed close to solar and wind farms. Typically, lithium-ion batteries have largely been used by utilities to store renewable energy when the sun sets or the wind stops blowing. However, existing utility-scale storage can only discharge energy for up to four hours at a time, meaning that systems aren't able to provide widespread power for a longer period of time (eg: over the night period). There is a need for middle and long-duration batteries that provide sustained power for longer periods.

    Altech's CERENERGY(R) ABS60 battery packs are designed to fill this gap. The newly designed Altech ABS60 battery packs are expected to take approximately 6 hours to charge and discharged over a similar period. However, they have the capacity to discharge quicker, in less than 3 hours if required. These battery packs' charging and discharge characteristics match closely the power generation patterns of the sun. The Altech design team will be advancing heat transfer modelling and optimising insulation design next.

    *To view photographs, please visit:
    https://abnnewswire.net/lnk/TTW8S975



    About Altech Chemicals Ltd:

    Altech Chemicals Limited (ASX:ATC) (FRA:A3Y) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (Al2O3) through the construction and operation of a 4,500tpa high purity alumina (HPA) processing plant at Johor, Malaysia. Feedstock for the plant will be sourced from the Company's 100%-owned kaolin deposit at Meckering, Western Australia and shipped to Malaysia.

    HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. Increasingly HPA is used by lithium-ion battery manufacturers as the coating on the battery's separator, which improves performance, longevity and safety of the battery. With global HPA demand approximately 19,000t (2018), it is estimated that this demand will grow at a compound annual growth rate (CAGR) of 30% (2018-2028); by 2028 HPA market demand will be approximately 272,000t, driven by the increasing adoption of LEDs worldwide as well as the demand for HPA by lithium-ion battery manufacturers to serve the surging electric vehicle market.

    News Provided by ABN Newswire via QuoteMedia

    [subscribe_company_profile use_post="101821931"]

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