Altech Batteries (ASX: ATC) makes notable progress across projects in Dec 2023 quarter - Kalkine Media

Highlights

• Silumina Anodes^TM Definitive Feasibility Study increases output eightfold to 120GWh from 15GWh.
• Estimated capital cost of Silumina Anodes^TM 8,000tpa plant is €112 million with NPV₁₀ of €684 million and IRR of 34%.
• Annual output from CERENERGY^® Battery Project has expanded to 120MWh.
• Optimised design of 60KWh battery pack has been concluded for CERENERGY^®.

Altech Batteries Limited (ASX: ATC) has released its quarterly report for the period ended 31 December 2023. The quarterly report highlights the progress across ATC’s Silumina Anodes^TM Battery Materials Project and CERENERGY^® Battery Project.

This article would highlight the major developments witnessed by the firm across these projects in the quarter.

Silumina Anodes^TM Project DFS Expands Output to 120GWh

During the quarter, the company shared the Definitive Feasibility Study (DFS) results, undertaken on an 8,000tpa alumina-coated metallurgical silicon plant planned for Saxony, Germany. This plant would produce Silumina Anodes^TM. It is an alumina-coated silicon battery anode material, which is being manufactured under license from Altech. The patented Silumina Anodes^TM product increases the capacity of lithium-ion batteries for electric vehicles by including alumina coated silicon with graphite in the anode, with silicon having ten times the capacity of graphite alone.

According to Altech, the DFS results of the project have been highly encouraging. Estimated capital cost is €112 million with outstanding economics. The project presents a net present value (NPV₁₀) of €684 million, payback period of 2.4 years and estimated internal rate of return (IRR) is 34%. The project is estimated to generate net cash of €105 million per annum from operations, and estimated annual revenue is €328 million per annum at the full rate of production.

While finalising the DFS, Altech had managed to expand the output of Silumina Anodes^TM project by eightfold, that is, to 120 gigawatt-hours (GWh) from 15GWh, without introducing any change to equipment and plant. This development would cater to the long-term demand for silicon-type anodes.

Altech had initially intended to produce 10,000 tons of Silumina Anodes^TM products annually, and it included 1,000tpa of alumina-coated metallurgical silicon and 9,000tpa of alumina-coated graphite. Now, the plant will focus on producing alumina-coated metallurgical silicon only at 8,000tpa rate, and customers would integrate this product with graphite within their battery plants. With this, the output has increased eightfold.

Feedback from customers highlighted that their priority is to use their qualified graphite source.

CERENERGY^® Battery Project’s output capacity increases

Post the final design of facility design, the output capacity of the project has been increased from 100MWh to 120MWh, annually. In this development, lead engineering company Leadec and joint venture partner Fraunhofer made considerable contribution.

The enhancement has been achieved through technical design optimisation and without any additional costs.

GridPack stacking enables triple stacking with a simple electrical connection and minimum maintenance is required for the GridPacks.

Updated design of 60KWh battery pack

Altech had recently revealed the 60KWh battery pack’s updated and optimised design. The updated design includes-

• Sleek stainless-steel exterior which maintains finish in all type of weather conditions.
• Battery base includes high-temperature-resistant electrical cables.
• Mica insulation has been employed in the connector plates, which helps in establishing electrical links between cells.

Altech reported that the two working prototype 60KWh batteries are in full production and first stainless-steel battery case has been undergoing heat loss testing.

ATC shares traded at AU$0.055 apiece at the time of writing on 06 February 2024.