Altech Batteries Limited

Release Highlights:

• CERENERGY® 60 kWh Prototype Online: Altech’s CERENERGY® ABS60 battery prototype is operational and surpassing expectations, showing exceptional efficiency, thermal stability, and real-world performance.
• Extensive Testing Validates Reliability: The prototype demonstrates a 15-year lifespan, 91% efficiency, and stable high-temperature performance, proving its potential as a safe, lithium-free alternative for energy storage.
• Paving the Way for Production: Successful testing supports Altech’s plans for a 120MWh production facility, with substantial interest from potential off-take parties already emerging.

Release Highlights:

• Strategic Offtake Letter of Intent agreement
• Schwarze Pumpe Industrial Park Association transitioning to alternative energy
• Offtake for 30MWh of 1MWh CERENERGY® GridPacks per annum for the first five years of production
• Agreement to also collaborate to convert industrial park from coal to renewable energy
• Altech’s CERENERGY® GridPack storage solution integrated
• GridPack deliveries start by mid-2027 or when plant is ready

Release Highlights:

• Crux Investor discusses the battery market and how Altech’s two projects, being the CERENERGY sodium-chloride solid-state battery and Silumina Anodes battery materials project that uses high-capacity silicon in the graphite anode for EV batteries, fits into the market.
• Also included is an interview with CFO Martin Stein and Crux Investor. Crux Investor takes a refreshing approach whereby the interviewer doesn’t shy away from the tough questions and probes the real issues with Martin.
• Please find below the link for the article written by UK firm Crux Investor.
  https://www.cruxinvestor.com/posts/altech-batteries-dual-pronged-approach-to-capturing-the-booming-battery-market

Release Highlights:

• Altech Batteries has launched an AUD 8.5 million pro-rata Entitlement Offer for existing eligible shareholders, which is partially underwritten for AUD 5 million by MAA Group Berhad, an entity related to Altech director Tunku Yaacob Khyra. This Entitlement Offer aims to raise significant funds for the company’s ongoing projects.
• In addition to the Entitlement Offer, Altech has successfully raised AUD 405,000 through a placement to sophisticated and professional investors. Participants in both the placement and Entitlement Offer will receive free attaching options on the basis of one option for every two shares held, with an exercise price of AUD 0.06 and an expiry date of December 31, 2025.
• The total capital raised, amounting to approximately AUD 8.9 million, will be utilized to further progress Altech’s CERENERGY® battery project and the commissioning of the Silumina Anodes™ pilot plant. The company will also apply to the ASX for the listing of the newly issued shares and options.

Report Highlights:

• Altech Batteries Limited is pleased to announce a market capitalization of AUD 82.6 million, with a share price standing at AUD 0.05 as of June 30, 2024. The company has issued 1,653.3 million shares, along with 28.6 million options and 123.2 million performance rights, reflecting a robust equity structure.
• As of June 30, 2024, Altech Batteries reported cash reserves of AUD 2.1 million. Despite facing significant operating cash outflows of AUD 2.58 million and investing outflows of AUD 3.42 million for the quarter, the company demonstrated financial resilience by securing AUD 4.77 million from financing activities, thus maintaining a stable cash position.
• The leadership at Altech Batteries is spearheaded by an experienced board, including Non-executive Chairman Luke Atkins and Managing Director Iggy Tan. Their headquarters is strategically located in Subiaco, Western Australia, with Martin Stein serving as the Chief Financial Officer and Company Secretary, ensuring strong governance and operational oversight.

Release Highlights:

• Altech Batteries is strategically positioned to benefit from the projected 234% increase in global silicon anode production capacity in 2024. Their innovative Silumina Anodes project, which involves coating silicon with alumina for use in lithium-ion batteries, aligns perfectly with the industry’s move towards mainstream adoption of silicon anodes.
• The fully constructed pilot plant in Germany is in the final stages of commissioning, marking a significant milestone for Altech. This readiness allows Altech to soon produce commercial samples of Silumina Anodes for potential customers, including major automobile manufacturers. This development is timely as the industry sees increased capital commitments and capacity expansions, particularly in China and South Korea.
• Altech’s next-generation Silumina Anodes are designed to overcome traditional challenges associated with silicon anodes, such as expansion and degradation. With the market poised for significant growth, Altech’s commitment to innovation and quality positions them as a key player in the evolving silicon anode industry, as highlighted by Benchmark’s Silicon Anode Forecast.

Arrowhead has updated coverage on Altech Batteries Limited (“Altech” or ATC or the company) with a fair value bracket of AUD 0.45 – AUD 0.89 per share (share price on July 23, 2024: AUD 0.055) based on a Net Present Value (NPV) methodology.

Report Highlights:

• Altech has a JV agreement with Fraunhofer (September 2022) to commercialize the CERENERGY® Battery and fast tracking its Silumina Anodes™ qualification process.
• Altech’s long-term vision is to construct a Gigawatt battery facility in Saxony, apart from building a 100 MWh plant.
• Altech increased the output capacity of the CERENERGY® project from 100 MWh to 120 MWh per annum in the Definitive Feasibility Study (DFS) completed in March 2024; the project will require an investment of EUR 156 mn, and is expected to generate Net Present Value (NPV) of EUR 169 mn, -Internal Rate of Return (IRR) of 19% and a steady packback in 3.7 years.
• Altech’s Silumina Anodes™ Battery Materials Project’s DFS, which was completed in December 2023, estimates post-tax NPV of EUR 684.8 mn, IRR of 34.6% and a payback period of 2.4 years; the capital cost of the project was estimated at EUR 112.5 mn, while it was expected to generate revenue of EUR 328 mn per annum at maximum capacity of 8,000tpa.
• All the components of the first ABS60 BatteryPack prototype have been fabricated; once the welding of the cells to Cell Contacting System (CCS) is completed, five completed battery modules will be delivered to Fraunhofer; these modules will be mounted to form the first ABS60 BatteryPack prototype, available for testing by potential customers.
• ATC raised USD 3.72 mn under its Share Purchase Plan (SPP) in May 2024 to be utilized for the production ABS60KWh CERENERGY® BatteryPacks prototypes for customer testing and to advance the construction of the pilot plant at Saxony.
• Altech received the final installment of EUR 1.583 mn from the sale of 25% of Altech’s subsidiary Altech Industries Germany GmbH (AIG).

Release Highlights:

• Altech Batteries Limited has successfully completed the production and initial testing of all 240 cells for their first 60 kWh CERENERGY® ABS60 BatteryPack Prototype. The tests conducted by Fraunhofer have shown excellent cell quality and higher-than-expected energy capacity.
• The team made several improvements to the cell electrode design, resulting in better energy capacity and reduced nickel content. The Cell Contacting System (CCS) has been manufactured, delivered, and is currently in the process of having the cells welded to it by an external service provider.
• Once the welding is completed, the battery modules will be assembled into the ABS60 BatteryPack at Fraunhofer IKTS in Dresden next week. This first prototype will then be ready for testing and demonstration to potential customers, helping Altech secure offtake agreements and financing for their planned 120 MWh battery plant in Germany.

Release Highlights:

• Altech Batteries Limited (ASX: ATC) has appointed global corporate advisory firm KPMG to assist in securing finance for the construction of the 120MWh CERENERGY® battery plant in Germany, following the recent Definitive Feasibility Study announcement. KPMG will provide financial advisory services on potential financing transactions and public grant/subsidies programs, leveraging their global network and expertise across 143 countries to support Altech in this endeavor.
• KPMG will assist Altech in exploring all financing options for the CERENERGY® battery project, including project equity, green bonds, grants, and subsidies, aiming to secure the necessary funds to construct the plant. This strategic appointment is expected to enhance Altech’s ability to attract global financing and sales offtake agreements for the project.
• Martin Stein, Altech’s Chief Financial Officer, emphasized the revolutionary potential of CERENERGY® battery technology in the renewable energy sector and expressed confidence that KPMG’s strong reputation and credibility will significantly aid Altech in the financing process, ultimately strengthening the company’s position in the global market.