Emerging battery materials producer Altech Chemicals (ASX: ATC) is getting a step closer to producing its proprietary silicon graphite product for the European battery market after executing the construction contract for its pilot plant in Germany.
The final construction contract was executed with German industrial plant engineering firm Kuttner GmbH and Co, which has completed the final plant engineering design and cost estimation for the Silumina Anodes plant.
The basic engineering phase has confirmed key design parameters, locking in key equipment capacities and validating operational criteria.
Kuttner has already commenced the procurement process, starting with long lead items. Construction is expected to follow once equipment begins arriving “towards the back end of this year”, Altech said.
Silumina Anodes pilot plant
Altech’s game changing technology involves incorporating high-capacity silicon in lithium-ion batteries, achieving a 30% higher energy battery with improved life. The resultant silicon graphite product is registered as Silumina Anodes.
The company’s pilot plant is designed to produce 120 kilograms per day of Silumina Anodes coated battery anode material, which will be made available to selected European battery manufacturers and automakers.
The plant will be constructed in Dock3, which is leased warehouse space located next door to Altech’s land in the Schwarze Pumpe Industrial Park in Saxony, Germany.
It is estimated the plant will cost $7.17 million, of which $5.38 will be funded by Altech as the 75% owner. The remaining $1.79 million will be funded by 25% Altech Advanced Materials AG.
Altech confirmed it is well funded for its portion of the pilot plant with a cash position at the end of March 2022 of $11.57 million.
German-based Kuttner is an engineering, procurement and construction (EPC) contractor with strong experience in design, procurement, project and construction management, and plant commissioning across a range of industries.
The company has previously completed metallurgical plant, water and off-gas treatment projects in Germany.