Altech Batteries Charging Ahead with Innovative Battery Technology

• Altech Batteries is developing two main battery technologies: the salt-based serenergy grid storage battery and the silicon-graphite salumina anode material.
• Altech recently raised $15.8 million in funding, including a $7.5 million underwritten rights issue, to support feasibility studies and pilot plants for both technologies.
• The serenergy battery uses common materials like salt and nickel, avoiding lithium and cobalt supply constraints. It is fireproof and has double the lifespan of lithium batteries.
• The salumina anode pilot plant is nearing completion to produce samples for battery makers to test. It can increase battery capacity 30% by incorporating silicon into graphite.
• By end of 2023, Altech aims to finalize feasibility studies and secure offtake agreements on both projects, targeting commercial production of salumina anodes by 2026.

About Altech Batteries

Altech Batteries Limited (ASX: ATC) is an Australian battery technology company developing innovative silicon graphene and sodium chloride batteries. The company has two main projects - the Serinus sodium chloride battery being developed in Germany, and the Silumina anode technology which incorporates silicon into lithium-ion batteries to boost capacity and energy density.

Altech recently completed a $15.8 million capital raising, including an underwritten rights issue supported by major shareholder Deutsche Balaton Group. The funds will advance both battery projects towards definitive feasibility studies and commercialization.

Interview with Iggy Tan, MD of Altech Batteries Ltd

Key Highlights from CEO Interview

• Serinus Sodium Chloride Battery Feasibility Study Due by Year End - Altech is close to finalizing a definitive feasibility study on its Serinus sodium chloride battery technology licensed from German partner Fraunhofer IKTS. The solid-state ceramic batteries offer advantages over lithium-ion like being fireproof, longer lifespan, and not relying on scarce battery metals like lithium, cobalt and nickel. Altech plans an initial 100MWh Serinus battery factory in Germany.
• Silumina Anode Pilot Plant Nearing Completion - Altech is installing the final equipment at its Silumina anode pilot plant, which will produce 120kg/day of silicon-graphite anode material. Adding silicon to graphite anodes can increase lithium-ion battery capacity and energy density up to 30%. The pilot will produce commercial samples for battery manufacturers to test.
• Strong Interest from European Auto/Battery Giants - The company has signed NDAs with leading European electric vehicle and battery makers interested in testing its Silumina anode material. While qualification takes 12-24 months, Altech can progress project funding and construction in parallel.
• Permitting Process Advancing Quickly - Altech has submitted applications for construction and environmental permits for its planned 10,000tpa Silumina plant. Approvals will be handled at the state level in Germany, accelerating the process compared to federal level.
• DFS and Project Funding Targeted for 2023 - With feasibility studies on both technologies nearing completion, Altech is targeting project funding and construction decisions next year. The company aims to have the Silumina plant operational by end 2026 and the Serinus factory online within a similar timeframe.
• Major Growth Potential Long-Term - Beyond its initial 100MWh Serinus plant, Altech is looking to scale up to gigawatt-scale battery factories in Germany to serve massive forecast growth in European grid storage markets. The company aims to be a major player in sodium chloride and silicon anode batteries.

Innovation Driving Competitive Edge

Altech is focused on commercializing innovative battery technologies that can outperform mainstream lithium-ion batteries dominating the electric vehicle and stationary storage markets.

Its Serinus sodium chloride batteries offer significant advantages over lithium-ion like fire safety, extended lifespan, tolerance of extreme temperatures, and avoidance of scarce battery metals. This gives Altech a potential edge in grid storage and other large scale stationary storage applications.

Meanwhile, the company's Silumina silicon-graphite anode material allows lithium-ion batteries to achieve higher energy density and capacity compared to standard graphite anodes. This promises performance benefits for EV batteries and consumer electronics without changing cathode chemistry. Altech aims to be a leading supplier of these enhanced lithium-ion anodes.

Strong Industry Partners Supporting Development

Altech has partnered with leading research institutions and battery companies to develop and commercialize its technologies.

For the Serinus battery, Altech has an exclusive license and joint venture with German state research center Fraunhofer IKTS who developed the technology after 8 years and €35 million of R&D. Fraunhofer provides key expertise for the feasibility study and project development.

On the Silumina anode side, Altech has tie-ups with advanced materials institutes in Germany and Australia supporting pilot plant construction and product qualification. The company also has NDAs with major European auto and battery makers who are testing its silicon anode samples.

Conclusion

With two innovative battery technologies nearing commercialization supported by industry partners, Altech Batteries appears positioned to disrupt the lithium-ion battery market.

Definitive feasibility studies due over the coming months for both the Serinus and Silumina projects will further derisk the technologies and could act as share price catalysts.

If the company can secure funding and customer contracts next year as targeted, construction of its initial battery factories in Germany would demonstrate execution and represent major milestones.

Longer-term, Altech's plan to scale up to gigawatt-scale production taps into enormous forecast growth in batteries for electric vehicles and grid-scale storage in Europe.

Investors seeking exposure to innovative battery technology with significant commercial potential should keep a close eye on Altech's progress through feasibility and project funding over the next 12-18 months.