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Altech Batteries secures CERENERGY project funding from major shareholder Deutsche Balaton AG

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By Imelda Cotton - 
Altech Batteries ASX ATC Deutsche Balaton AG loan facility
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Altech Batteries (ASX: ATC) major shareholder Deutsche Balaton AG has agreed to provide a loan facility of up to $4.28 million to help fund the ongoing development of Altech’s CERENERGY and Silumina Anodes battery projects.

The German investment firm will offer the loan in the form of a binding bond note subscription deed that will allow Altech to draw down the funds in the form of bearer bonds, with interest set at 7% per annum.

The funding will enable Altech to progress its projects without the dilutionary impact to shareholders of a capital raise via a share issue.

Lender shortlist

Altech confirmed in January that it was working with its financial adviser to create a shortlist of potential lenders for the construction of its CERENERGY sodium-chloride solid-state battery manufacturing plant in Germany.

10 commercial banks and two venture debt funds had already expressed strong initial interest at that point.

Altech expects to make full repayment of the bearer bonds through the sale of its landholding in the Malaysian state of Johor, which is subject to approval by shareholders next month.

The company has established a trust agreement under which Altech subsidiary Altech Chemicals has pledged security over the Malaysian plot and provided a guarantee of repayment of the bonds, which will mature in October 2026.

Final permit

Altech revealed last week that it had secured the final environmental and construction permit required to build its CERENERGY GridPack production facility.

The 120-megawatt-hour plant will produce a battery based on common table salt, offering a sustainable alternative to conventional lithium-ion technology.

A definitive feasibility study for the project has indicated a pre-tax net present value of approximately $291 million, annual revenue of $182m and EBITDA of $88m, against a 3.7-year payback period.

Silumina Anodes ownership

Altech is also pushing forward with its Silumina Anodes project, which adds high-capacity silicon into lithium-ion batteries for the electric vehicle market.

The company recently moved to assume full ownership of the project through the acquisition of Altech Advanced Materials AG’s 25% equity interest in Altech Energy Holdings (AEH) and its 25% equity interest in Altech Industries Germany (AIG).

AEH is a 75% stakeholder in the CERENERGY project, while AIG owns all of Silumina Anodes.

Altech said the transaction would give it the autonomy to make key investment and operational decisions without requiring external approvals, thereby enhancing project execution efficiencies.