Altech Batteries Limited

This is a short executive summary of Australia-based innovative battery materials company Altech Batteries Limited company from CEO & Managing Director Iggy Tan.

This is an executive summary of Australia-based innovative battery materials company Altech Batteries Limited from the CEO & Managing Director Iggy Tan, who will run you through Altech’s slide deck.

Highlights:

• Final market product prototype under fabrication – 60 KWh (ABS60) battery pack
• Produced at the Fraunhofer IKTS facility in Hermsdorf, Germany
• 60 KWh battery pack design launched on 7 November 2022
• Extensive cycling simulations to evaluate the temperature profile
• Design freeze for prototype fabrication
• Prototypes for customer testing and qualification process

Highlights:

• Discusses the Company’s CERENERGY(R) Battery Project and the launch of the 1MWh GridPack design
• The industry heavily relies on China for graphite anode material, which poses geopolitical risks
• Lithium-ion battery fires are difficult to put out because they generate oxygen at the cathode end of the battery
• The alternative solution is the Tech Chemical Serenity battery, which uses sodium alumina solid-state technology
• Designed in collaboration with German partner Fraunhofer IKTS, the product known as GridPack uses sodium ions (commonly found in table salt) rather than lithium, cobalt, graphite or copper
• Cheaper to produce and lessens exposure to critical metal price rises and supply chain issues.
• A definitive feasibility study on the product is currently underway

Highlights:

Change of Company Name to Altech Batteries Limited

• Resolution was approved by shareholders at the General Meeting held on 21 February 2023
• Resolution received overwhelming support, with 99.72% of the votes received being in favour of the change
• New name reflects Altech’s vision to meet a battery storage future as the world transitions to the electrification of energy solutions
• New name is consistent with the business and market segments of all three of Altech’s projects
• New name will allow for marketing of Altech’s future products in a more beneficial manner
• Altech will retain the current ASX ticker, “ATC”

Launch of CERENERGY 1.0 MWh GridPack Design for Renewable Energy Storage Market

• Launch of 1.0 megawatt-hour (MWh) GridPack design
• Non-Lithium Battery – Sodium Alumina Solid State
• Rated at 600 Volts DC and 100 Ah
• Specially designed for renewable energy and grid storage market
• Able to be safely installed outdoors in any weather conditions
• Sea container design, easy transportation by sea or road
• “Plug and play” site installation
• GridPacks are modular and stackable which reduces battery footprint
• Noiseless operation – ideal for noise-sensitive environments
• Low maintenance costs over battery life

Update of CERENERGY Battery Project

• Outstanding progress and advancement of the project Definitive Feasibility Study
• Expert Workshops held in Germany in October and December 2022
• Design basis for 100MWh battery plant were finalised
• All major equipment suppliers selected
• Potential early-stage off-take discussions
• Exploring various grant schemes and initial contact with EU banks

Great Progress at German Silumina Anodes Pilot Plant

• Significant progress and according to plan
• Front end wet circuit complete
• Commissioning underway of wet circuit
• On site laboratory completed and being commissioned
• Long lead calciner still outstanding from South Africa
• Expect to commission calcining end of Q3

Silumina Anodes Project Update

• DFS work progressing well on full-scale 10,000tpa plant

Altech Batteries Limited is pleased to provide a YouTube link of its CEO’s, Mr Iggy Tan, investor presentation at the inaugural Future Facing Commodities Conference, held in Singapore on 4-6 April 2023

Highlights:

• Arrowhead is reinitiating its coverage on Altech Batteries Limited with a fair value bracket of AUD 0.33 to AUD 0.74 per share (share price on April 03, 2023: AUD 0.096) based on the Net Present Value (NPV) methodology.
• Altech Batteries Limited is a specialty battery material technology and development company with a specific focus on downstream battery and battery materials development
• The Company aims to address existing challenges in the Electric Vehicle (EV) and grid storage battery industries by leveraging its disruptive and innovative technologies, thereby achieving breakthroughs in the respective applications
• The Company is working on two main projects, namely CERENERGY® Batteries and Silumina AnodesTM
• The Company has taken an enormous leap forward in the world of energy storage by joining forces with the renowned Fraunhofer IKTS institute to create a revolutionary new battery technology, with the introduction of the CERENERGY® Sodium Alumina Solid State (SAS) battery. This innovative new battery technology, which Fraunhofer developed over the past eight years, offers a safer and more affordable alternative to traditional lithium-ion batteries (according to Fraunhofer, the CERENERGY® batteries will be 40-50% cheaper than lithium-ion batteries) that have dominated the market for years. With plans to construct a 100 MWh production facility on Altech’s land in Saxony, Germany, the company is poised to become one of the major players in providing grid storage solutions to the market. However, the Company’s longer-term vision is to construct a Gigawatt battery facility in Saxony.
• No thermal runaway risk, a wider operating temperature range, and negligible usage of critical battery raw materials mark Altech’s introduction of Sodium Alumina Solid State CERENERGY® Batteries. These could be potential game changers that could revitalize the grid storage market by addressing the concerns faced by lithium-ion batteries
• The company recently launched the design for the CERENERGY® Sodium Alumina Solid State (SAS) 1.0 MWh Grid Pack, which is specifically engineered to adhere to the Ingress Protection (IP) 65 standard, thereby addressing the shortcomings by ensuring complete protection from both dust and inclement weather, making outdoor installations safe irrespective of the weather conditions. Also, the Grid Pack is constructed using a sea container design for easy transportation by sea or road to the installation site, as well as to ensure simple installation
• The Company has commenced the Definitive Feasibility Study (DFS) required for the commercialization of the 100 MWh project and expects the completion of its DFS by November 2023
• By incorporating high-capacity silicon into lithium-ion batteries, the company has achieved a remarkable 30% increase in energy storage capacity, along with improved battery life and cyclability, through its extensive in-house research and development, which has helped the Company successfully crack the “silicon code”. The Company’s proprietary silicon graphite product is registered as Silumina AnodesTM.
• The Company is in the race to get its patented technology to market and has announced the results of a Preliminary Feasibility Study (PFS) for the construction of a 10,000tpa Silumina AnodeTM material plant within the Schwarze Pumpe Industrial Park in Saxony, Germany, which will also house a pilot plant which is designed to produce up to 43,800 kilograms of anode-grade coated battery material per year, i.e., 120 kg per day for the production of samples for EV original equipment manufacturers
• The PFS has robust and attractive economics with a high-margin, high-value proposition, and a relatively low level of capital investment. With a capital outlay of c. USD 95 mn, the Company estimates a project net present value (NPV) of c. USD 507 mn (discount rate of 8.0%), with an EBITDA of USD 63 mn per annum. The Company estimates the internal rate of return (IRR) at 40%, with a pay-back period of c. 3.1 years. The total annual revenue at the 10,000 tpa is estimated at USD 185 mn per annum, with an EBITDA margin of 34%. The Company has already commenced its DFS for its 10,000 tpa battery materials plant ahead of its schedule, and it is expected to be completed in H2 2023
• The Company has signed two Memorandums of Understanding with two Europe-based suppliers of lithium-ion battery-grade anode materials, namely SGL Carbon GmbH (SGL) for the supply of uncoated synthetic graphite anode material and Ferroglobe Innovation S.L. (Ferroglobe) for the supply of Silicon anode material
• The Company has an agreement with Fraunhofer as a strategic partner to expedite the testing and qualification process for the Silumina AnodesTM product, with the main objective being to test the long-term performance of the products in different applications
• The Silumina AnodesTM project has recently been awarded green accreditation from the independent Norwegian Centre of International Climate and Environmental Research (CICERO)
• Recently, the Company changed its name from “Altech Chemicals Limited” to “Altech Batteries Limited” (ASX: ATC). The Company believes that the new name reflects the Company’s vision to meet a battery storage future, is consistent with the business and market segments of all of its projects, and might allow the Company to better market its future products more beneficially
• Altech Batteries Limited is publicly listed on the Australian Stock Exchange (ASX) and is traded under the symbol ‘ATC’. It is also listed on the Frankfurt Stock Exchange (FRA) under the symbol ‘A3Y’

Highlights:

• Launch of 1.0 megawatt-hour (MWh) GridPack design
• Non-Lithium Battery – Sodium Alumina Solid State
• Rated at 600 Volts DC and 100 Ah
• Specially designed for renewable energy and grid storage market
• Able to be safely installed outdoors in any weather conditions
• Sea container design, easy transportation by sea or road
• “Plug and play” site installation
• GridPacks are modular and stackable which reduces battery footprint
• Noiseless operation – ideal for noise-sensitive environments
• Low maintenance costs over battery life

Highlights:

• Altech Batteries Limited is pleased to advise that it has received the first two installments of Deferred Consideration from Altech Advanced Materials AG (AAM), in relation to the sale of 25% of Altech’s subsidiary Altech Industries Germany GmbH (AIG). The amount received is A$5.12 million (€3.17 million)
• On 23 December 2020, Altech sold 25% of its German subsidiary AIG for A$8 million (€5.0 million) to Altech Advanced Materials AG (AAM), with ATC retaining ownership of the remaining 75%
• The Initial Cash Consideration of A$0.4 million (€0.25 million) was received upon the signing of the Share Sale and Purchase Agreement in December 2020, with Deferred Consideration amounting to A$7.6 million (€4.75 million), payable in three equal installments of A$2.5 million (€1.58 million)