Here’s why Altech Batteries (ASX: ATC, FRA: A3Y) battery technology advances deserve attention - Kalkine Media

Highlights

• Altech Batteries achieved promising outcomes in Definitive Feasibility Studies for Silumina Anodes^TM battery materials and CERENERGY® salt battery projects.
• The pilot plant in Germany for Silumina Anodes^TM product is near completion.
• Silumina Anodes^TM has seen a remarkable capacity increase to 120GWh from 15GWh.
• Altech advanced CERENERGY® permitting and financing efforts.
• Altech's commitment to environmental sustainability showcased with a notable 50% decrease in greenhouse gas emissions in the CERENERGY® Battery Project.

ASX-listed battery technology company Altech Batteries Limited (ASX: ATC, FRA: A3Y) recently shared a comprehensive review of its operations for the latest half ended 31 December 2023. During the six-month period, the Company witnessed substantial achievements and advancements across its battery technology projects.

ATC advanced the Definitive Feasibility Study (DFS) for its CERENERGY® salt battery project, which is near completion. Meanwhile, for the Silumina Anodes^TM battery materials project, the Company reported the completion of the DFS, expansion of project capacity, and progress across its Germany-based pilot plant.

CERENERGY® Battery Project DFS Delivers Excellent Results  

During the reported period, ATC continued with the progress of DFS for its CERENERGY® battery project. In March 2024, the Company announced excellent DFS results.

With an estimated capital cost of EUR156 million, the DFS highlighted an outstanding net present value (NPV) of EUR 169 million (NPV₉) and a substantial net cash flow generation of EUR 51 million annually from operations. The estimated internal rate of return stands at 19%, ensuring a swift capital steady state payback in merely 3.7 years.

Upon reaching full production capacity of 120 1MWh GridPacks, the anticipated annual revenue is expected to reach EUR 106 million. Additionally, with an EBITDA of EUR 51 million (with a margin of 47%), the project economics remain compelling, even at this relatively modest first production line capacity.

In addition to this, during the-six month period, the Company concluded product design, selected key suppliers, commenced the fabrication of two 60KWh ABS 60 prototype batteries, and initiated significant steps in permitting and financing for the plant construction.

Altech's pilot plant in Germany is nearing completion, demonstrating its capability to produce 120kg/day of Silumina Anodes^TM product. Altech has inked Non-Disclosure Agreements with international car manufacturers and battery material supply chain companies, marking a significant stride towards establishing global partnerships.

ESG Accomplishment at CERENERGY ® Battery Project

Through independent testing, a notable 50% decrease in greenhouse gas emissions was uncovered in comparison to conventional lithium-ion batteries, underscoring Altech's dedication to environmental sustainability.

Encouraging DFS outcomes reported for Silumina Anodes^TM Project

The Company reported a highly positive DFS for its 8ktpa Silumina Anodes^TM project. The output of the project increased from 15 gigawatt-hours (GWh) to 120 GWh, reflecting an eight-fold increase in the DFS output.

With a capital cost estimated at EUR 112 million, this project boasts outstanding economics that promise significant returns. The pre-tax NPV₁₀ of the project is expected to be EUR 684 million, coupled with a 34% Internal Rate of Return (IRR). Furthermore, the payback period for this investment is a mere 2.4 years.  

Altech Batteries Limited has demonstrated remarkable progress and achievements in its battery technology projects during the latest reporting period. With positive outcomes from Definitive Feasibility Studies, advancements in pilot plant construction, substantial capacity increases, and a strong commitment to environmental sustainability, the Company is making a strong foothold in the battery materials and energy storage markets. These developments underscore Altech's position as a key player in the evolving landscape of sustainable energy solutions, with promising prospects for future innovations and partnerships on a global scale.

ATC shares traded at AU$0.068 apiece at the time of writing on 8 April 2024.