Altech Batteries Selects Preferred Debt Funding Provider for CERENERGY Project

Altech Batteries (ASX: ATC) has selected a European bank with a track record in backing technology-driven projects as the preferred funding provider for its CERENERGY sodium-chloride solid-state battery project in Germany.

Bank respresentatives have visited the testing facilities of joint venture partner Fraunhofer IKTS in Dresden and the battery prototype production house in Hermsdorf to ensure the project and its technology meets the bank’s financing and risk criteria.

In parallel with this, Altech is progressing discussions relating to a federal government guarantee that will act as an underwriter to the project and de-risk debt funding.

Equity Funding

Altech has engaged several advisors to help secure the equity component of the project’s funding package and plans to divest a minority interest in the project to select investors.

The move hopes to attract large utilities, data centre operators, investment funds and corporations committed to the green energy transition who can contribute capital and strategic value aligned with CERENERGY’s long-term growth and sustainability goals.

Altech has signed several non-disclosure agreements with prospective investors, enabling the company to engage in more comprehensive discussions with these parties.

The company expects full debt and equity financing would complete the funding package and secure the project’s timely construction and commissioning.

Offtake Agreements

Altech has secured a number of offtake agreements it regards as crucial to financing efforts and advancing the CERENERGY project.

The agreements are with Zweckverband Industriepark Schwarze Pumpe, to purchase 30 megawatt hours of energy storage capacity annually (consisting of 1MWh GridPacks) for the first five years of production and Referenzkraftwerk Lausitz GmbH for 30MWh of CERENERGY storage in the first year, increasing to 32MWh annually for the next four years.

The company has also signed an agreement with renewable energy solutions provider Axsol GmbH for exclusive distribution of CERENERGY batteries to the Western defence industry, facilitating early market entry and sales.

Single-Cell Stress Testing

Fraunhofer has recently completed single-cell stress testing that confirmed the safety and operational robustness of CERENERGY battery technology.

The rigorous tests evaluated the batteries’ performance under abnormal or stressed conditions beyond standard operating parameters and verified the integrity and resilience of each cell.

Daily charge and discharge cycling is ongoing and has so far demonstrated that individual cells can perform consistently across the full capacity range, while over-charge and over-discharge testing has demonstrated the battery’s resilience, safety and ability to recover without damage.

Fraunhofer has also conducted thermal stability, full-cycle thermal, cell failure and cell circuit tests to confirm stability, safety and ongoing reliability in extreme conditions.

Potential Risks

Altech managing director Iggy Tan said testing was crucial for determining potential risks, mismanagement or external factors that might compromise the technology.

“Expert testing by Fraunhofer, in accordance with international standards, has validated the robustness of our technology and shown no critical behaviours,” he said.

“The cells continued to operate for days or even weeks under the sort of extreme conditions which would cause typical lithium-ion cells to fail and require safety interventions — our batteries were proven to be safe under all conditions, offering uninterrupted operation without risk or performance degradation, even in the event of individual cell failure.”

Industrial Fair

In March, Altech showcased CERENERGY technology in front of key energy storage stakeholders at the Hannover Messe industrial fair in Germany, as part of broader efforts to secure a partner and accelerate the technology’s commercialisation.

Mr Tan said meetings with energy companies, industrial manufacturers and strategic investment firms looking to tap into the rapidly-growing market had been “overwhelmingly positive”.

“Hannover Messe comes at a time when Germany is ramping up its defence and clean energy investments, driven in part by growing geopolitical uncertainties and the ongoing trade war between Europe and the US,” he said.

“Energy security is becoming a top priority and we are delighted by the level of interest in our technology — as countries and industries accelerate their transition towards renewable energy, we believe CERENERGY will be a game-changer in providing cost-effective, safe and sustainable battery solutions.”