Altech Batteries (ASX:ATC, FRA:A3Y) advances CERENERGY® Project with Strategic Funding and Offtake Agreement

Highlights

• In June 2024, an international big four professional services firm was engaged to assist with securing funding the CERENERGY^® project in Saxony, Germany.
• For debt funding, two venture debt funds and ten commercial banks were approached.
• The company plans to sell a minority stake in the project, targeting strategic investors alongside financial backing.
• In September 2024, Altech signed a 5-year offtake Letter of Intent (LOI) with ZISP.

Altech Batteries Limited (ASX:ATC, FRA:A3Y) is progressing its funding strategy for the CERENERGY® battery project.

In June 2024, Altech’s German subsidiary, Altech Batteries GmbH, appointed an international big four professional services firm to assist in securing funding for the construction of the 120MWh CERENERGY^® battery manufacturing plant in Saxony, Germany.

Financing plan and structure in place

The company has developed a comprehensive financing strategy, which includes equity, debt and grants to cover capital expenditures, debt service, working capital, financing costs and a contingency for business interruptions.

For debt funding, Altech has engaged ten commercial banks and two venture debt funds in an initial market round, with many of these institutions expressing interest in participating in the funding. The group is currently shortlisting potential lenders to select the best financial partners for the project. The next steps include:

• identifying the most suitable banks to form a syndicate
• appointing a lead bank to oversee the lending process.

This syndicate will be key in structuring the financing to meet the project’s needs.

Regarding the equity component, the company plans to sell a minority stake in the project, aiming to not only raise funds but also bring strategic value to the initiative. So far, ATC has signed multiple Non-Disclosure Agreements (NDAs) to enable more in-depth engagement with potential investors.

The company plans to finalise the full financing package by securing both equity and debt components. This will ensure the timely construction and commissioning of the CERENERGY® battery plant. The next steps will focus on advancing discussions and securing formal commitments to move the project forward.

Additionally, in September 2024, Altech Batteries GmbH signed a 5-year offtake Letter of Intent (LOI) with Zweckverband Industriepark Schwarze Pumpe (ZISP). Under the offtake LOI, ZISP would purchase 30 MWh of energy storage capacity each year. This will consist of 1MWh GridPacks for the first five years of production. The battery price agreed upon is consistent with the sales price outlined in Altech’s Definitive Feasibility Study.  

ATC shares were trading over 4% higher at AU$0.047 apiece with a market cap exceeding AU$87 million, at the time of writing on 22 November 2024.