Altech secures €46.7M grant extension, sells land, discontinues battery materials project

Extension of €46.7M German Grant for CERENERGY® Project

Altech Batteries Limited (ASX:ATC) has secured an extension to the deadline for achieving full financial close on its CERENERGY® Sodium Chloride Solid State battery project funding. The German Federal Ministry for Economic Affairs and Energy has extended the deadline beyond 30 June 2026 to 30 September 2026 for the €46.7 million grant under the federal STARK economic development program. This grant covers approximately 30% of the eligible project capital expenditure and is pivotal for advancing the CERENERGY® technology, which offers a lithium-free, safer alternative to lithium-ion batteries aimed at the European stationary energy storage market. The project is developed in collaboration with the Fraunhofer Society and is positioned as a strategically independent energy storage solution.

Sale of Non-Core Meckering Land Boosts Working Capital

Altech has completed the sale of its land in Meckering, Western Australia, generating gross proceeds of $950,000. The Board deemed the land non-core and the sale proceeds provide fresh working capital for the group. Importantly, Altech has retained the mining lease M70/1334 and entered into an Exploration, Mining, Access, Compensation and Option to Purchase Agreement with the new landowner, ensuring continuity of mining operations on the lease. The sale also involved Deutsche Balaton AG, a major shareholder, discharging its mortgage on the land in exchange for a $500,000 bank guarantee from Altech. This guarantee secures part of the €2 million bearer bonds owed to Deutsche Balaton AG, which are due for repayment by 31 October 2026. Altech is pursuing the sale of land in Johor, Malaysia, to fund this repayment.

Discontinuation and Liquidation of Silumina AnodesTM Project

After approximately six years, Altech has decided to discontinue its Silumina AnodesTM battery materials project based in Saxony, Germany. Despite strategic partner searches and non-disclosure agreements with battery and automobile companies, the project failed to secure sales or a strategic funding partner. The pilot plant did not operate at full capacity, and the new Board, appointed in December 2025, concluded that further investment was unlikely to benefit shareholders. Consequently, Altech Industries Germany GmbH, the subsidiary holding the project assets, was placed into liquidation on 30 June 2026. Assets including land, pilot plant equipment, and R&D laboratory apparatus are being monetised, with gross proceeds of approximately €389,000 expected from the land sale back to the local government. The liquidation is expected to reduce costs and allow Altech to focus fully on commercialising the CERENERGY® battery project, with ongoing advanced discussions for potential joint ventures.

Shareholder Equity Movements and Corporate Updates

During the quarter, 284,614 options exercisable at $0.08 and expiring on 30 April 2026 were converted into fully paid ordinary shares, while 28.26 million options expired unexercised. Additionally, 43.15 million performance rights lapsed on 30 June 2026 due to unmet conversion conditions. Altech also updated its registered office and principal place of business to 9/17 Prowse Street, West Perth, Western Australia.