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Highlights
Altech advances debt financing with a major European bank for CERENERGY® battery project
Equity funding pursued via strategic partnerships across energy and tech sectors
First five years of battery output fully covered through offtake agreements
Battery technology company Altech Batteries Ltd (ASX:ATC) has taken further steps to secure both debt and equity funding for its CERENERGY® battery initiative in Saxony, Germany. As part of the All Ordinaries index, Altech is progressing negotiations with a prominent European lender while also actively seeking strategic equity partners to support the large-scale energy storage project.
The initiative targets advanced sodium alumina solid-state battery production, with project support also sought from federal and European-level grant schemes aimed at driving clean energy transitions.
Debt Financing Enters Final Review Phase with European Lender
Altech’s ongoing debt financing discussions have narrowed to one European bank known for supporting innovative energy infrastructure. This lender has conducted technical due diligence, including visits to Altech's sites in Dresden and Hermsdorf. A formal lending mandate is yet to be confirmed, but engagement has progressed through structured evaluations.
To support lender confidence, Altech is pursuing a federal guarantee from the German Government. The application process is underway, with the Ministry of Finance already briefed on the project. If granted, this guarantee would help mitigate credit risk across the project’s financing framework.
Equity Partner Search Targets Strategic Industry Backing
In parallel with debt efforts, Altech has launched a formal process to onboard one or two strategic equity partners, offering up to a forty-nine percent stake in the German project. The search is focused on groups with operational relevance in the energy and storage space, including utilities, green energy funds, and data centre operators.
Multiple non-disclosure agreements have been executed, and draft term sheets are already being exchanged to shape commercial frameworks. The company has enlisted advisers to manage the outreach and ensure that shortlisted partners can provide long-term technical and market alignment.
Government Grant Applications Span Regional and EU Programs
Altech has also applied for grant funding from regional, federal, and European Union programs designed to accelerate energy transition. These applications aim to unlock financial support for the CERENERGY® project’s development in areas such as clean manufacturing, employment creation, and high-tech battery facility upgrades.
The programs include funding streams that prioritise the conversion of legacy coal-related infrastructure into renewable technology hubs, with Saxony representing a key region in Germany’s energy transformation agenda.
Offtake Agreements Confirm Full Capacity Utilisation for Initial Phase
To support financing discussions and project certainty, Altech has finalised three Letters of Intent covering the full production capacity for the first five years of operation.
The buyers include Zweckverband Industriepark Schwarze Pumpe (ZISP), which plans to procure annual energy storage volumes; RefLau, a joint venture supporting Altech with green electricity; and Axsol GmbH, which will distribute batteries for use in the Western defence sector. These agreements signal strong early demand and are intended to support progress toward construction and launch milestones.
