Altech Chemicals (ASX:ATC) raises AU$8.1M to advance battery material development

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Altech Chemicals (ASX:ATC) raises AU$8.1M to advance battery material development

 Altech Chemicals (ASX:ATC) raises AU$8.1M to advance battery material development
Image source: Copyright © 2021 Kalkine Media


  • Altech Chemicals successfully raises AU$8.1 million through placements of shares.
  • The funds raised will be utilised towards the next stage of the development of battery material.
  • Proceeds from the placement will enable the construction of a pilot plant, land purchase and finalisation of PFS and DFS for a 10,000 tpa plant in Germany.
  • The Company has also initiated a Share Purchase Plan for existing shareholders.

To further boost the performance of lithium batteries using its proprietary coating technology, Altech Chemicals Limited (ASX:ATC|FRA:A3Y) has raised AU$8.1 million via a share placement. In its recent update, the Company announced that it had achieved a 30% increase in energy capacity in lithium batteries by using its pioneer coating technology. The research and development team at Altech continues to refine the technology in a bid to achieve higher efficiency and battery life cycle than the uncoated one.

Recent update: 'Silicon Code' decoded: Altech Chemicals' breakthrough to improve battery performance by 30%

The placement offer was oversubscribed amid strong demand and interest from investors. The recent trend in the market is evident that investors do not want to miss the green bandwagon and are investing heavily in green stocks, especially related to battery technology.

Under the share placement, Altech will issue 76 million shares at an issue price of 10.7 cents a share.

Furthermore, the Company will undertake a Share Purchase Plan (SPP) under which it hopes to raise an additional AU$4 million. The SPP will be open to participate for all existing shareholders of the Company with a record date of 1 December 2021. The existing shareholders with a registered address in Australia and Canada will be offered shares pursuant to the SPP at 10.7 cents, up to a maximum limit of AU$30,000.

The closing date of SPP participation is 17 December 2021.

Related read: Altech Chemicals’ shares fly on major breakthrough in Li-ion battery technology

Data source: Company update, 2 December 2021

Altech’s game-changing technology

Altech achieved a breakthrough in its coating technology of the battery anode material. On 25 November 2021, ATC announced that the R&D team based at its Perth laboratory ‘cracked the silicon barrier’ to achieve ~30% higher energy retention capacity than the conventional lithium battery.

The lithium-ion battery industry recognised the fact that the introduction of silicon could enhance the performance of the battery significantly. Silicon has nearly 10 times the energy retention capacity of graphite. But the problem with silica is, its volume expands up to 300% during the charging of the battery, leading to swelling, fracturing and ultimately battery failure.

After almost 12 months of challenging work, the R&D team of Altech achieved the major milestone. The team was working on the inclusion of its coated silicon in the graphite anode. To overcome the volume expansion problem, the team coated silicon particles with Altech’s proprietary high-purity alumina (HPA). The composite silicon/graphite anode, when energised, held 30% more capacity compared to the conventional graphite anode.

Related read: Altech Chemicals (ASX: ATC) – set to disrupt the Lithium-ion battery market with its HPA coating technology

Image source: Company Presentation, 18 November 2021

Encouraged by the recent breakthrough, the R&D team is advancing to the next stage of battery material development to increase energy capacity beyond ~30%. Altech has commenced a preliminary feasibility study (PFS) for the construction of a battery coating plant in Saxony, Germany, and is nearing completion. Also, the work on independent green accreditation of the process has commenced.

Related read: How is Altech Chemicals Revolutionising the Lithium Battery Market?

Shares of ATC are trading at AU$0.125 at around 12:00 PM (AEDT). The Company has a market cap of AU$180.49 million as of 2 December 2021.


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