Altech Batteries Limited has made significant strides in funding and technology for its CERENERGY® battery project, including a $4 million capital raise and a breakthrough 55% increase in lithium-ion battery anode energy density.
- Secured $4 million in oversubscribed share placement at a 50% premium
- Achieved 55% higher energy density in Silumina Anodes™ lithium-ion batteries
- Advanced funding strategy with positive interest from 10 banks and 2 venture debt funds
- Signed multiple offtake agreements totaling over 70 MWh for CERENERGY® GridPacks
- Commissioning of Silumina Anodes™ pilot plant underway in Saxony, Germany
Funding Momentum for CERENERGY® Battery Project
Altech Batteries Limited (ASX: ATC) has reported robust progress in financing its flagship CERENERGY® sodium-chloride solid-state battery manufacturing plant in Saxony, Germany. The company finalized a comprehensive funding plan encompassing debt, equity, and grants, targeting the full capital expenditure and operational costs for the 120MWh facility. Engagement with ten commercial banks and two venture debt funds has yielded predominantly positive feedback, with the company now shortlisting potential lead banks to structure a lending syndicate.
Complementing debt efforts, Altech is pursuing equity funding by offering a minority stake in the project to strategic investors aligned with green energy objectives. Discussions have advanced with multiple parties, including large utilities and investment funds, with draft term sheets circulated to facilitate negotiations. CEO Iggy Tan highlighted the complexity of the funding stage but expressed confidence in the strong interest from European banks and equity partners.
Breakthrough in Lithium-Ion Battery Technology
Altech announced a major technological breakthrough with its Silumina Anodes™ lithium-ion battery material, achieving a 55% increase in energy capacity compared to traditional graphite anodes. This leap builds on a previous 30% improvement by overcoming dispersion challenges of alumina-coated silicon particles blended with graphite. The innovation addresses critical issues such as silicon particle swelling and first-cycle capacity loss, resulting in stable batteries with sound cycling performance.
Led by Dr. Jingyuan Liu, the R&D team’s persistent efforts have culminated in a composite graphite/silicon anode exhibiting approximately 500 mAh/g energy retention capacity, significantly surpassing the industry norm. The company is currently commissioning a pilot plant adjacent to the proposed production site to scale this technology, aiming to revolutionize the lithium-ion battery market with safer, higher-density anodes.
Strategic Offtake Agreements Secure Early CERENERGY® Sales
Altech has secured multiple offtake agreements for its CERENERGY® GridPack battery energy storage systems, underpinning early revenue streams and market validation. A second Letter of Intent was signed with Referenzkraftwerk Lausitz GmbH (RefLau), a joint venture of Enertrag SE and Energiequelle GmbH, for 30 MWh in the first year, increasing to 32 MWh annually over five years. This agreement also includes Altech purchasing renewable electricity from the partners to power its plant.
Additionally, a third Heads of Agreement was executed with Axsol GmbH, a certified NATO supplier, for an initial 10 MWh in 2027 scaling up to 30 MWh and potentially 120 MWh annually. Axsol will serve as the exclusive distributor for western defence industries and collaborate on advanced battery management systems, positioning Altech’s technology in a high-value, security-sensitive market segment.
Capital Raise Supports Project Advancement
During the quarter, Altech completed an oversubscribed placement raising $4 million at $0.06 per share, a 50% premium to the recent entitlement offer. The funds will accelerate key activities including securing project finance, completing the CERENERGY® battery prototype, commissioning the Silumina Anodes™ pilot plant, and conducting preliminary assessments for a future 4 GWh gigafactory. The placement was managed by Evolution Capital, which received options as part of the arrangement.
With a cash balance of $7.2 million at quarter-end, Altech is well-positioned to advance its commercialisation milestones. CEO Iggy Tan emphasized the strategic timing of the raise and the company’s commitment to delivering on its ambitious growth plans.
Outlook and Industry Implications
Altech’s progress reflects a convergence of technological innovation and strategic partnerships that could disrupt the battery storage sector. The breakthrough in silicon-based anode technology addresses longstanding industry challenges, potentially enabling safer, higher-capacity lithium-ion batteries. Meanwhile, the CERENERGY® project’s funding and offtake agreements signal strong market demand for scalable, solid-state energy storage solutions aligned with renewable energy integration.
As Altech moves toward commissioning and commercial production, the company’s ability to secure final financing and convert offtake agreements into firm contracts will be critical. The evolving energy landscape, particularly in Europe’s transition to renewables, offers a fertile environment for Altech’s technologies to gain traction.
Bottom Line?
Altech Batteries is poised at a pivotal juncture, with funding secured and technology breakthroughs setting the stage for commercial success in the evolving energy storage market.
Questions in the middle?
- Will Altech finalize its full project financing package and secure a lead bank soon?
- How will the Silumina Anodes™ technology perform in large-scale commercial production?
- What impact will the exclusive defence sector partnership with Axsol have on Altech’s revenue and market positioning?