Altech Batteries increases CERENERGY and Silumina Anodes stakes with $23.3m acquisition
Altech Batteries (ASX: ATC) says its move to acquire 100% of the Silumina Anodes project and increase its ownership in CERENERGY to 75% represents a pivotal moment in its strategic growth.
The company has executed a binding term sheet to acquire Altech Advanced Materials AG’s (AAM) 25% equity interest in Altech Energy Holdings (AEH) and its 25% equity interest in Altech Industries Germany (AIG).
AEH is a 75% holder of CERENERGY, while AIG owns all of Silumina Anodes.
Development acceleration
Altech told shareholders that the acquisitions position the company to accelerate the development and commercialisation of the two projects.
The AAM equity interests Altech plans to acquire represent an additional 18.75% stake in the CERENERGY project and 25% of the Silumina Anodes project.
German firm Fraunhofer IKTS remains a 25% joint venture partner in the CERENERGY project.
Unique technology
The unique Silumina Anodes technology features a breakthrough in battery material innovation incorporating high-purity alumina in silicon anodes to improve battery performance.
The CERENERGY project is at the forefront of next-generation sodium-chloride battery development, offering a sustainable alternative to conventional lithium-ion technology.
CERENERGY batteries are fire- and explosion-proof, have a lifespan of more than 15 years and can operate in extreme cold and desert climates.
They use table salt and are free of lithium, cobalt, graphite and copper, eliminating exposure to critical metal price rises and supply chain concerns.
‘Practical solution’
“The transaction presents a practical solution to recent funding challenges faced by AAM,” Altech said.
“Altech will have the autonomy to make key investment and operational decisions without requiring external approvals, thereby enhancing project execution efficiency.”
“Furthermore, the acquisitions will provide Altech with a stronger negotiating position when engaging with potential strategic partners, customers and financiers.”
“This structure aligns the interests of both companies and ensures that AAM continues to benefit from future successes.”
“AAM will remain an investment company on the Frankfurt Stock Exchange rather than holding a direct interest in both projects.”
Altech share issue
Altech will issue AAM approximately 532 million fully paid ordinary shares, resulting in AAM holding roughly 21% of Altech’s issued share capital post-acquisitions.
Based on the volume-weighted average price of Altech shares at $0.044 over the 15 trading days prior to this announcement, the total consideration offered is valued at $23.3 million.
Altech said it would work closely with AAM to finalise definitive agreements and complete all required regulatory and shareholder approvals.