Altech Batteries Ltd (ASX:ATC, OTC:ALTHF) is aiming to raise A$4 million, with funds to be used to progress the CERENERGY® and Silumina Anodes™ Projects.
The company is advancing the commercialisation of its 120 MWh CERENERGY battery project and approaching the commissioning of the Silumina Anodes pilot plant.
Money will be raised through the issuance of 66,666,667 fully paid ordinary shares at A$0.06 per share – a 50% premium over the recent entitlement offer on August 7, 2024.
Investors in the placement will also receive one free attaching listed option for each share, with an exercise price of A$0.06 and an expiry date of December 31, 2025.
Shares are scheduled to be issued on November 22, 2024.
Use of funds
Funds from the placement are earmarked for several strategic objectives, including securing project finance and bank due diligence, advancing offtake agreements for the CERENERGY project, environmental permitting and completing the fabrication of a second 60kWh battery prototype for CERENERGY.
Additional funds will support finalising the Silumina Anodes pilot plant commissioning, initial assessments for a proposed 4 GWh gigafactory, and covering corporate expenses and working capital.
The company will undertake the following:
- securing project finance and bank due diligence process;
- securing offtake for CERENERGY project;
- CERENERGY environmental and project permitting;
- completion of fabrication of second 60kWh battery prototype for CERENERGY project;
- finalising commissioning of the Silumina AnodesTM pilot plant;
- preliminary assessment into a 4 GWh factory (Giga factory); and
- corporate costs and working capital.
“We are encouraged by the strong market interest in our current initiatives. In August 2024, we conducted an entitlements issue at $0.04 per share that provided our existing shareholders with a fair opportunity to participate previously.
"The current placement at $0.06 per share represents a 50% premium over the recent entitlements issue price and Altech does not intend to conduct another entitlement issue at the higher price," Altech managing director Mr Iggy Tan said.
“This capital raise comes at an exciting juncture for Altech as it advances the commercialisation of its 120MWh CERENERGY battery project and nears commissioning of the Silumina Anodes pilot plant.
"A portion of the funds will also be allocated to a preliminary study for a larger 4 GWh battery facility, marking the next significant step towards commercialisation.”
Advancing CERENERGY
Altech has entered into a joint venture with Germany's renowned Fraunhofer Institute for Ceramic Technologies and Systems (Fraunhofer IKTS) to commercialise the innovative CERENERGY Sodium Chloride Solid State (SCSS) Battery.
Positioned as a transformative alternative to lithium-ion batteries, CERENERGY batteries offer key advantages: they are fire and explosion-proof, have a lifespan exceeding 15 years, and are capable of operating in both extreme cold and desert climates.
This battery technology is lithium-free, cobalt-free, graphite-free, and copper-free, relying instead on readily available table salt, thus avoiding critical metal price volatility and supply chain risks.
The joint venture aims to commercialise CERENERGY batteries through a planned 120 MWh production facility on Altech’s land in Saxony, Germany. This facility will focus on manufacturing CERENERGY battery modules, targeting grid storage solutions for the market.
About Silumina Anodes
Altech has licensed its proprietary high-purity alumina coating technology to its subsidiary, Altech Industries Germany GmbH (AIG), of which it owns 75%. AIG has completed a Definitive Feasibility Study (DFS) for establishing an 8,000-tonne-per-annum (tpa) silicon-alumina coating plant in Saxony, Germany.
This facility will produce Silumina Anodes, a silicon-based anode material designed for the European electric vehicle (EV) market, which is experiencing strong growth.
Altech’s patented technology integrates high-capacity silicon into lithium-ion batteries, enhancing battery energy density by 30% and extending battery life.
Higher energy density allows for smaller, lighter batteries, contributing to reduced greenhouse gas emissions and advancing the EV sector’s environmental impact. The Silumina Anodes technology is patented and has obtained green accreditation from CICERO, an environmental research organisation in Norway.
AIG has selected Ferroglobe as its European silicon feedstock supplier and has begun constructing a pilot plant to validate the Silumina Anodes product. Confidentiality agreements are in place with German and North American automotive and battery materials companies to support future partnerships.
The 8,000-tpa plant will be located at AIG’s site in the Schwarze Pumpe Industrial Park.