Altech Batteries (ASX: ATC) releases Mar’23 Quarter Report showing progress on battery projects - Kalkine Media

Highlights

• Altech is a battery storage focused company, and its projects drew considerable interest on display at the Japan Expo event
• The company is progressing well with respect to the CERENERGY® GridPack Project, and Silumina Anodes™ Pilot Plant
• Altech has partnered with Germany's Fraunhofer IKTS for the development of a non-lithium battery storage solution

Altech Batteries (ASX: ATC, FRA: A3Y) -- which is developing an alternative to lithium-ion (li-ion) batteries in collaboration with Germany's Fraunhofer IKTS -- recently released its quarterly report for the period ended 31 March 2023. The major highlights relate to ATC's CERENERGY® GridPack (non-lithium, and Sodium Alumina Solid State storage option) and the progress at Silumina Anodes™ Pilot Plant. Notably, the company also changed its name during the reporting quarter (ASX ticker ATC is retained).

The changed name, according to Altech, is a reflection of the company's vision for a battery storage future, thanks to fast transition of the world to electrification of energy solutions. Key aspects included in the company's latest report about ATC’s projects are as mentioned below.

Image source: Company update

Payment Tranche

Altech Batteries received the initial two instalments, amounting to AU$5.12 million, of the Deferred Consideration from Altech Advanced Materials AG. This relates to the sale of one-fourth of ATC's subsidiary entity Altech Industries Germany GmbH. The last instalment of AU$2.5 million would be due in December this year.

Separately, the company Chief Technology Officer Dr. Jingyuan Liu met with Western Australian Minister for Mines and Petroleum Mr. Bill Johnston at the Battery Japan Expo.

Launch of CERENERGY® GridPack (JV with battery institute Fraunhofer)

One of the key highlights of the reported quarter was Altech's launch of CERENERGY® 1.0 MWh GridPack design (IP 65). The company is eying the lucrative renewable energy and grid storage market with this development. A pre-installed solution has been launched, with every GridPack having up to 20 (twenty) 60KWh battery packs. The arrangement can be in series (cluster/ array) with the goal of achieving the required rating of several thousand KWs for functioning of the grid.

The packs provide protection from dust and bad weather conditions, which means they can be easily installed in any landscape. Altech would make its GridPacks using a sea container design for easy transportation. Installations in remote locations has been made simple by incorporating the "plug and play" feature. Altech's storage and distribution solution is non-flammable and has many other features that the company claims make it better as compared to li-ion batteries.

Image source: Company update

Progress at Silumina Anodes™ Project

The company has progressed in the development of its Germany-based pilot plant by incorporating high capacity, high purity alumina-coated silicon and graphite in li-ion batteries. Altech has also completed a Preliminary Feasibility Study with respect to the construction of the 10,000tpa plant. The NPV of this project has been stated as US$507 million. Notably, the technology is patented by Altech and the front end of the pilot plant (wet circuit) in Saxony is progressing well, with front-end wet circuit infrastructure and many other aspects already completed.

With this pilot project, Altech is looking forward to supply customer samples for testing purposes. Notably, fabrication of the back end of the pilot plant is ongoing in South Africa and Europe. It is expected that the final items would be installed and commissioned in the third quarter of this year. The Definitive Feasibility Study (DFS) is also progressing alongside the plant construction. ARIKON Infrastrukture GmbH has been engaged by Altech to take care of approvals, infrastructure requirements, and other aspects.

As stated earlier, during the reported quarter Altech was in receipt of AU$5.12 million related to the 25% sale of Altech Industries Germany GmbH. The final sum of AU$2.5 million is due in December. Altech's display of CERENERGY® and Silumina Anodes™ technologies at the Battery Japan Expo (March 2023) drew interest and excitement from attendees, with Dr. Jingyuan Liu also discussing these projects with Hon Bill Johnston MLA. The name change resolution in February 2023 received “overwhelming support” of shareholders.

ASX-listed shares of the company, under ticker ATC, traded at AU$0.098 (market cap of over AU$135 million) at the time of writing on 30 May 2023.