Altech Batteries receives key approvals for German CERENERGY battery plant construction

Altech Batteries (ASX: ATC) has received environmental and construction approval under Germany’s Federal Emission Control Act (BImSchG) for its new CERENERGY GridPack sodium-chloride solid-state battery manufacturing plant in Saxony.

The approval will allow German subsidiary Altech Batteries GmbH to finalise project funding and commence site clearing and construction for the 120-megawatt-hour facility.

Environmental risk impacts determine the process for such applications, with most projects falling under the jurisdiction of BImSchG for federal approval.

Permit application

Altech submitted an application for a construction and operating permit and licence to German authorities in September 2023.

The company made the application in collaboration with engineering subcontractor Leadec Services and architecture and balance-of-plant subcontractor Arikon AG.

Altech conducted the permit and licence process in parallel with the CERENERGY definitive feasibility study to minimise delays in project execution once financing is secured.

Final approval

Group managing director Iggy Tan said he was pleased to have received the final licensing approval for the CERENERGY project so early.

“Our approach of being dynamic, quick-moving and running things concurrently puts Altech in good stead to now complete the financing process,” he said.

“We appreciate the authorities’ recognition of our professional and responsible approach and we are thankful for their exceptional support.”

High degree of confidence

Mr Tan said the BImSchG approval would provide potential lenders with a higher degree of confidence in the project.

Altech distributed a funding invitation document to various financial institutions worldwide in late 2024, receiving strong initial interest from 10 commercial banks and two venture debt funds.

The company plans to work with its funding adviser to shortlist the most suitable financial partners.

Sustainable alternative

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 fireproof and explosion-proof, with a lifespan of more than 15 years and the ability to operate in extreme cold and desert climates.

The batteries use table salt and are free of lithium, cobalt, graphite and copper, eliminating exposure to critical metal price rises and supply chain concerns.