Altech’s CERENERGY® Battery Earns Top ‘Dark Green’ Rating, Paving Way for Green Bonds

Altech’s CERENERGY® Battery Achieves Highest Environmental Rating

Altech Batteries Limited (ASX: ATC) has announced a significant milestone for its CERENERGY® battery project, receiving the coveted “Dark Green” rating from S&P Global Ratings’ Shades of Green assessment. This top-tier classification reflects the project’s alignment with a long-term low-carbon, climate-resilient future, underscoring its environmental credentials and sustainability ambitions.

The CERENERGY® battery is a solid-state sodium chloride technology developed in partnership with Germany’s Fraunhofer IKTS. Unlike traditional lithium-ion batteries, CERENERGY® batteries avoid critical minerals such as lithium, cobalt, graphite, and copper, relying instead on abundant materials like sodium, alumina, and recycled nickel derivatives. This composition not only reduces supply chain risks but also significantly lowers the carbon footprint associated with battery production.

Environmental Impact and Emissions Advantage

S&P Global Ratings’ assessment estimates the CERENERGY® battery’s lifecycle emissions at approximately 14 kg CO2 per kWh of capacity, which is roughly one-third of the emissions associated with lithium-ion batteries, typically ranging between 61 and 106 kg CO2/kWh. This reduction is attributed to the battery’s fossil-free direct production process, powered entirely by renewable energy sources, including a dedicated solar power purchase agreement and on-site solar installations.

In addition, the battery’s design facilitates full recyclability through mechanical methods, which are less energy-intensive and emit fewer greenhouse gases than chemical recycling. This circular approach to materials management further enhances the project’s sustainability profile.

Strategic Implications and Market Opportunities

The “Dark Green” rating not only validates the environmental benefits of the CERENERGY® battery but also qualifies the project for Green Bond financing. This access to a rapidly expanding market, approaching US$250 billion annually, provides Altech with a strategic avenue for capital raising, particularly appealing to investors prioritizing climate-conscious assets.

Altech’s Managing Director, Iggy Tan, emphasized that the rating offers transparent categorization for green bond investors, enhancing confidence in the project’s climate impact. The company anticipates strong demand for CERENERGY® batteries in industrial microgrids, data centers, logistics hubs, hospitals, and heavy industries such as steel and chemicals, where decarbonization and electrification are critical.

Positioning in the Evolving Battery Landscape

While lithium-ion batteries remain dominant, sodium-based solid-state batteries like CERENERGY® are expected to capture a growing share of the stationary storage market. The International Energy Agency’s STEPS scenario projects sodium-based batteries to account for around 10% of annual capacity additions by 2030, driven by their lower environmental impact and reduced reliance on critical minerals.

Altech’s ongoing collaboration with Fraunhofer and its plans to build a 120 MWh production facility in Saxony, Germany, position the company at the forefront of this emerging technology. The company’s broader portfolio, including the Silumina Anodes™ project targeting silicon-enhanced lithium-ion batteries, further diversifies its innovation pipeline.

As the battery industry grapples with supply chain constraints and environmental scrutiny, Altech’s CERENERGY® project stands out as a compelling alternative that aligns with global decarbonization goals and investor appetite for green assets.