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Altech Batteries
Overview
Altech Batteries (ASX:ATC, FRA:A3Y) is a battery technology company focused on commercialising the revolutionary CERENERGY® Sodium-Chloride Solid State (SCSS) Battery, destined for the renewable energy grid storage market. The SCSS Battery does not require lithium, cobalt, copper or graphite, bypassing these high-demand and expensive minerals, and leverages a novel sodium-chloride (common table salt) technology to produce a more durable and longer-lasting battery. This new battery uses cheaper and readily available sodium rather than the more scarce, costly and risky lithium. Lastly, Altech is headed by an experienced team who understands what it takes to bring transformative technology to market.
That’s not all Altech has going for it, either. Unlike other energy storage options, the Company’s new SCSS Battery technology promises to solve many issues associated with traditional lithium batteries, including fire and explosion risks, manufacturing costs, operating temperature ranges and lifespans.
The reality is simple: Lithium-ion batteries have been susceptible to fire and explosions and have even malfunctioned in certain temperatures — all critical issues that must be solved to ensure long-term sustainability.
CERENERGY® batteries solve these challenges. For example, they do not contain any volatile flammable electrolyte or plastic separator, and use a solid-state ceramic tube. Simply put, the thermal runaway problem that’s plaguing lithium-ion batteries is not possible with Altech’s new battery technology.
Altech has a joint venture agreement with the German government battery institute Fraunhofer IKTS, which has been developing the CERENERGY® battery over the past eight years and invested over 35 million euros in research and development. Now, Altech is helping commercialise the technology by providing expertise and resources to build a new 100 MWh plant in Saxony, Germany, on Altech’s land.
Company Highlights
- Altech Batteries is a battery technology company focusing on commercialising its revolutionary CERENERGY® Sodium-Chloride Solid State (SCSS) Battery that uses common table salt technology.
- Altech’s proprietary technology does not require lithium, cobalt, copper or graphite, eliminating cost, ethical, safety and supply chain issues.
- Compared to lithium-ion batteries, the CERENERGY® battery is fire and explosion proof, is cheaper to manufacture, is suitable in any temperature range and provides a greater lifespan.
- Altech has a joint venture agreement with Fraunhofer IKTS, the German Government’s Battery Institute that has been developing the SCSS technology for eight years with significant financial investment.
- The joint venture is building a new 100 MWh plant in Saxony, Germany to manufacture the new SAS 1.0 MWh GridPack, designed for the lucrative and growing grid storage market.
- Additionally, Altech is building a pilot plant for its Silumina AnodesTM product, designed to improve lithium-ion batteries by providing a higher capacity anode for the EV market. This patented technology involves coating silicon and graphite with high-purity alumina, increasing the capacity of lithium-ion batteries by 30% compared to traditional graphite only anodes.
Key Projects
CERENERGY® Sodium-Chloride Solid State Battery Project
Altech Batteries and Fraunhofer IKTS are currently commercialising the Sodium-Chloride Solid State (SCSS) battery technology, which uses sodium over lithium. It is a solution geared toward the renewable energy grid storage market, an often overlooked but significant market for the transition to renewable energy.
Project Highlights:
- Solves Major Issues with Lithium-Ion Batteries: We’ve seen challenges with lithium-ion batteries become news stories as these batteries experience thermal runaway or cannot operate outside an ideal temperature range. CERENERGY® battery technology does not use combustible liquid electrolytes and has a significantly improved temperature range of -40 to 60 degrees Celsius.
- Impressive Shelf Life and Operating Life: Unlike lithium-ion batteries, the CERENERGY® battery does not use a liquid electrolyte, meaning it does not deteriorate over time; there is no loss of sodium. CERENERGY® batteries have extended shelf life compared to lithium-ion and an operating lifespan of over 15 years, which also exceeds lithium batteries.
- Pilot Plant and New GridPack Underway: Altech Batteries and Fraunhofer IKTS are now commercialising the technology with a new 100 MWh plant in Saxony. Additionally, Altech recently announced its new 1.0 MWh GridPack designed for grid storage. The new GridPack is suitable for all weather conditions, has low maintenance costs, and has a long battery life.
Silumina Anodes™ Pilot Plant
Altech Batteries has purchased the land in Saxony, Germany, for its 10,000tpa proprietary Silumina AnodesTM battery materials plant. The plant has a completed pre-feasibility study with outstanding economics. The Company strategically selected the plant’s location to serve the European battery market. The pilot plant will be built adjacent to the land.
Project Highlights:
- Encouraging Pre-Feasibility Study Completed: The PFS produced robust economics including:
- Pre-tax NPV8 US$ 507 million
- Internal Rate of Return (IRR) 40 percent
- Payback (full rate) 3.1 years
- EBITDA US$ 63 million p.a.
- Capital cost US$ 95 million
- Production costs – US$ 12.20/kg
- Avg. sale price – US$18.50/kg
- Gross Margin – 34 percent
- Plant Designed for Minimal Environmental Impact: The Centre of International Climate and Environmental Research (CICERO), located in Norway, has reviewed the plant’s design and awarded it the rating of “Medium Green.” This rating indicates that the project achieves ‘green’ financing.
- Feedstock Supply of Battery-Grade Anode Materials Secured: Altech Batteries has executed a Memorandum of Understanding (MoU) with two European suppliers of battery-grade materials: SGL Carbon and Ferroglobe.
Management Team
Iggy Tan - Managing Director
Iggy Tan is a highly experienced mining and chemical executive with a number of significant achievements in commercial mining projects such as capital raisings, funding, construction, start-ups and operations. Iggy has over 30 years of chemical and mining experience and been an executive director of a number of ASX-listed companies. He holds a Master of Business Administration from the University of Southern Cross, a Bachelor of Science from the University of Western Australia and is a graduate of the Australian Institute of Company Directors.
Iggy is responsible for managing and implementing the next stage of Altech’s strategic business objectives. Having been involved in the commissioning and start-up of seven resource projects in Australia and overseas, including high-purity technology projects, Iggy is an accomplished project builder and developer.
Iggy previously held the positions of managing director of Nickelore Limited, Galaxy Resources Limited and Kogi Iron Limited. At Galaxy, Iggy was responsible for capital raising, construction and start-up of the company’s Mt Cattlin spodumene mine ($80 million) and the Jiangsu lithium carbonate plant ($100 million), which resulted in Galaxy becoming the world’s leading producer of high purity lithium carbonate. The Jiangsu plant was eventually sold for $260 million in 2014.
Uwe Ahrens - Alternate Director
Uwe Ahrens is executive director of Melewar Industrial Group Berhad and managing director of Melewar Integrated Engineering Sdn Bhd. He also sits on the board of several other private limited companies. Uwe holds masters in both mechanical engineering and business administration from the Technical University Darmstadt, Germany. Upon graduation, Uwe joined the international engineering and industrial plant supplier, KOCH Transporttechnik GmbH in Germany, now belonging to FLSmidth Group, where he held a senior management position for 12 years, working mainly in Germany, USA and South Africa.
In 1997, Uwe was based in Kuala Lumpur as general manager of KOCH in South East Asia and became its managing director in 1999. He joined Melewar Group in 2002 and is also currently chief technical officer of the Melewar group of companies being responsible for engineering, upgrading, modification and extension of machinery and plant as well as the overall maintenance.
Martin Stein - Chief Financial Officer & Company Secretary
Martin Stein is a finance and corporate executive with over 20 years’ of international experience. Martin has held the positions of chief financial officer and company secretary in several ASX-listed companies. In these roles, Martin has been responsible for all aspects of capital raising, financial management, shareholder liaison and corporate governance.
Prior to this, Martin held senior positions with Anvil Mining Limited as well as with PwC at its London office. Whilst with PwC, Martin provided corporate services for companies listed on the LSE, NYSE and AIM, including Colgate-Palmolive, Sony, Heinz, DHL Express and Bosch.