Altech to Liquidate Silumina Anodes Assets, Advances CERENERGY Battery Plans

Silumina AnodesTM Project Discontinued After Strategic Review

Altech Batteries Ltd (ASX:ATC) has pulled the plug on its Silumina AnodesTM project in Saxony, Germany, bringing an end to six years of development. The company’s new board, appointed late last year, concluded that the project’s prospects no longer justified ongoing operational costs, especially after failing to secure a strategic funding partner despite extensive discussions. The pilot plant itself was not operating at full capacity, and non-disclosure agreements with battery and automotive companies failed to generate sales or positive feedback.

This decision marks a significant pivot away from Altech’s silicon anode ambitions, which had been a core part of its battery materials portfolio. The move follows a series of strategic resets and capital raises aimed at commercialising the company’s proprietary technologies, including a $6 million placement earlier this year to advance the Silumina AnodesTM scale-up and board renewal $6 million capital raise.

Liquidation of German Subsidiary to Recover Assets

Altech Industries Germany GmbH (AIG), the wholly owned subsidiary holding all Silumina AnodesTM assets, will enter liquidation by 30 June 2026. The company plans to monetise assets including land and pilot plant equipment, with net proceeds to be returned to Altech Batteries Ltd. The land in Saxony is expected to be sold back to the local government for gross proceeds of €450,000. Altech aims to maximise returns from the sale of R&D laboratory and pilot plant equipment during the liquidation process.

This liquidation is expected to reduce costs for Altech and streamline its operations as it reallocates resources. The move aligns with the company’s broader strategy to focus exclusively on its CERENERGY® Sodium Chloride Solid State Battery project, which has gained momentum recently with conditional government funding and relocation of R&D activities to Germany relocates battery R&D.

CERENERGY® Battery Project Takes Centre Stage

Altech’s CERENERGY® battery technology is positioned as a safer, longer-lasting alternative to lithium-ion batteries, using abundant table salt and avoiding critical metals like lithium, cobalt, and copper. The technology is fire and explosion-proof, with a lifespan exceeding 15 years and the ability to operate in extreme climates. The company is advancing plans to build a 120 MWh production facility in Saxony to manufacture CERENERGY® battery modules targeted at grid storage solutions.

Advanced discussions with potential joint venture partners for CERENERGY® are ongoing, and all company funds will now be directed toward commercialising this technology. This strategic focus follows Altech’s recent success in securing a €46.11 million German government grant to support the CERENERGY® project, which covers approximately 30% of the planned capital expenditure €46M German grant.

While the discontinuation of Silumina AnodesTM closes a chapter, it underscores Altech’s commitment to concentrating on what it views as its most promising battery innovation. The company’s next steps will be critical to watch, particularly regarding the progress of CERENERGY® joint venture negotiations and the timeline for production facility development.