Altech Batteries Limited

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.

Release Highlights:

• Altech Batteries has provided the results of its Share Purchase Plan following its closure on May 15th, 2024. Applications from eligible shareholders amounting to proceeds received of AUD 3,721,000.
• This represents 57,246,037 shares at AUD 0.065 per share and 28,622,799 free-attaching options with an exercise price of AUD 0.08 per share, expiring April 30th, 2026.
• The shares and options will be issued and allotted on 21 May 2024, with application for quotation of shares on the ASX starting on May 21st, 2024.

Presentation Highlights:

• Altech is pleased to present its CERENERGY® Battery Project, with state-of-the-art fire-proof, large-temperature-range, 15-year-shelf-life technology.
• CERENERGY® is free of critical minerals lithium and cobalt, with no graphite or copper anodes required. Grid storage grown to 28% CAGR, with projection for 3,000 GW by 2050.
• With a Grant Application in progress, discussions with two possible partners, and many EU Incentives for Green Projects, financing for CERENERGY® well underway.

• Uwe Ahrens, German MD of Altech, introduces the innovative CERENERGY Battery Project during the RIU Sydney Conference.
• The CERENERGY battery showcases state-of-the-art versatility, durability, and safety, revolutionizing energy storage.
• Ahrens passionately invites investors to explore this new battery technology and join Altech’s global mission towards renewable energy transformation.

Release Highlights:

• The Board of Altech Batteries has decided to extend its AUD 5 million SPP offer date by one (1) week to May 15th, 2024, after receiving feedback from several shareholders requesting additional time.
• This will ensure that all shareholders have sufficient time to participate.
• Payment details can be found on the personalized Application Form provided to shareholders.

Report: Highlights:

• ABS60 60kWh CERENERGY®Battery development has made significant strides, with two prototypes produced and the pilot plant at Fraunhofer IKTS Hermsdorf redesigned. All materials have been procured, and cell assembly is progressing well with low reject rates.
• All equipment on the Silumina Anodes™ Project now received for plant construction with plant area commissioning underway. Project includes robust economics including an NPV(10) of €684 million.
• CEO Iggy Tan recently presented at the RIU Conference held in Fremantle, Australia. Shareholders are invited to view a recording of the presentation at the following website link: https://investorhub.altechgroup.com/activity-updates/altechriu-presentation-february-2024-iggy-tan