How Altech’s Silicon Anode Breakthrough Could Transform EV Batteries

Technical Breakthrough in Silicon Anode Technology

Altech Batteries Limited (ASX – ATC) has announced a major advancement in its proprietary Silumina Anodes™ technology, achieving an impressive 88.5% capacity retention after 500 charge-discharge cycles with just a 5% addition of alumina-coated spherical silicon to graphite anodes. This milestone not only demonstrates the reproducibility and stability of their process but also marks a significant leap in lithium-ion battery performance, addressing the long-standing challenge of silicon’s volumetric expansion during cycling.

Silicon’s ability to store nearly ten times more lithium ions per gram than graphite offers a pathway to substantially higher energy densities. However, its tendency to expand up to 300% during charging has historically led to rapid capacity loss. Altech’s innovative spherical alumina coating and spherification process effectively mitigate this issue, preserving electrode integrity and enabling a capacity boost of over 40% compared to standard graphite anodes.

Strategic Capital Raise and Commercial Scale-Up

To capitalise on this breakthrough, Altech successfully completed a $6 million placement at $0.045 per share, with attached options, providing vital funding to advance its battery projects. These funds are earmarked for progressing the CERENERGY sodium-solid-state battery project, completing a 90kWh battery prototype, and assessing the feasibility of a 4 GWh Giga factory for large-scale production.

The company’s pilot plant in Saxony, Germany, is now fully operational, producing consistent, high-quality alumina-coated silicon particles. This facility underpins Altech’s readiness for commercial scale-up and supports ongoing product qualification and process optimisation efforts.

Board Renewal and Strategic Refocus

In a significant governance development, Altech appointed a new board in late November 2025, including Daniel Raihani as Managing Director and CEO, and Giuseppe (Joe) Graziano as Chairman. This leadership change follows a strategic reset aimed at sharpening the company’s focus on commercialising its core technologies, Silumina Anodes™ and CERENERGY.

The new board has discontinued the AMPower sodium nickel chloride UPS battery partnership, citing insufficient financial returns and resource demands. Instead, it is prioritising strategic partnerships with established industry players to accelerate commercialisation and secure project financing, including pursuing up to €46.11 million in German government grant funding under the STARK program.

Financial Position and Outlook

Altech’s financials reveal a cash balance of $2.4 million at quarter-end, with operating cash outflows reflecting ongoing development activities. The company acknowledges a cash runway of less than one quarter without additional funding, underscoring the urgency of securing strategic partners and further capital to sustain operations and execute its ambitious plans.

Despite these challenges, the company’s breakthrough in anode technology positions it well within the competitive battery materials sector, offering a scalable solution that could redefine lithium-ion battery performance standards across electric vehicles, portable electronics, and grid storage applications.