Altech Chemicals Ltd (ASX:ATC) has received strong validation of its battery materials technology strategy encompassing a Silumina AnodesTM plant in Germany with major German shareholders converting options for total proceeds of more than A$2.12 million.
The company’s largest shareholder Deutsche Balaton Aktiengesellschaft has converted 15 million listed options with an expiry date of May 31, 2022, and conversion price of A$0.08 each, for total proceeds of A$1.2 million.
In addition, significant shareholder Delphi Unternehmensberatung Aktiengesellschaft has converted 11,519,296 listed options for total proceeds of $921,543.
Altech has received total funds of $2,121,543 from the Deutsche Balaton and Delphi conversions.
Support is “very positive”
Managing director Iggy Tan stated “Altech is extremely pleased to have the support of these major shareholders at a very exciting time for the company.
"Altech recently announced the outstanding preliminary feasibility study results for its Silumina AnodesTM battery materials project in Germany, which included a pre-tax NPV(8) of US$507 million, as well as an attractive internal rate of return of 40%.
"To have the support of these major shareholders, both domiciled in Germany, at a time when Altech is moving forward with construction of the Silumina AnodesTM pilot plant in Germany, as well as the DFS on the 10,000 tonnes per annum Silumina AnodesTM, is very positive.
"On behalf of the Board of Directors, I would like to thank both Deutsche Balaton and Delphi for their ongoing support of Altech.”
The company also reminds holders of listed options of their pending expiry date of May 31, 2022, and reminds holders to consider converting their options. Payment must be received no later than May 31, 2022.
Developing German plant
Altech Chemicals is a specialty battery materials technology company that is developing a silicon graphite anode plant in the state of Saxony, Germany, using its proprietary high purity alumina coating technology thereby positioning to supply battery material products to the burgeoning European electric vehicle market.
The company is progressing game-changing technology to incorporate high-capacity silicon in lithium-ion batteries.
‘Silicon code’ cracked
Through in house R&D, the company has cracked the 'silicon code' and successfully achieved a 30% higher energy battery with improved cyclability or battery life.
Higher density batteries result in smaller, lighter batteries and substantially less greenhouse gases, and is the future for the EV market.
The company’s proprietary silicon graphite product is registered as Silumina AnodesTM and ATC is moving quickly to get the patented technology to market with the plant to play a considerable role in this strategy.
This plant will be at ATC’s 100%-owned 14-hectare industrial site within the Schwarze Pumpe Industrial Park in Saxony. European graphite and silicon feedstock supply partners for the plant will be SGL Carbon and Ferroglobe.
Green accreditation
Altech has also received green accreditation for this project from the independent Norwegian Centre of International Climate and Environmental Research (CICERO).
To support the development, the company will also be constructing a pilot plant next door to allow the qualification process for its Silumina AnodesTM product. ATC has executed NDAs with two German automakers as well as a European-based battery company.
Altech is also further aiming to become a supplier of 99.99% (4N) high purity alumina (Al2O3) through a 4,500 tonnes per annum high purity alumina (HPA) processing plant at Johor, Malaysia.
Feedstock for the plant will be sourced from the company’s 100%-owned near surface kaolin deposit at Meckering, Western Australia and shipped to Malaysia.
The HPA project is significantly de-risked with a bankable feasibility study completed, senior lender project finance from German government-owned KfW IPEX-Bank approved and a German EPC contractor appointed – with initial construction works at the site completed.