Altech Chemicals (ASX: ATC) has completed a framework agreement with leading German institute Fraunhofer IKTS in an effort to speed up the testing and qualification process for the company’s Silumina Anodes product.
After having recently opened its Battery Innovation and Technology Centre (BITC) in Arnstadt, Germany, IKTS is largely considered one of the leading know-how and research centres for battery materials across the globe.
The Australian-based emerging battery materials producer Altech will lean on IKTS’ labs and technical centres which bode outstanding equipment at the company’s sites in Dresden, Hermsdorf and elsewhere throughout Germany.
Partnership outlined
Altech Chemicals’ primary goal in teaming up with IKTS is independently testing the long-term performance of its Silumina Anodes battery material which will be conducted through various battery applications.
IKTS will rely on its plethora of lithium-ion battery research and network of partners, to complete thorough performance testing of various types of battery applications.
Pilot plant well funded
Altech is well funded to set up a pilot plant next to its industrial site in Saxony, Germany in an effort to supply commercial samples to potential downstream customers and to speed up the qualification process.
The company recently unveiled its completion of a pre-feasibility study for a 10,000-tonnes-per-annum Silumina Anodes plant in Germany.
Altech stands out from competitors as its silicon graphite composite product has a much higher energy capacity than the conventional graphite anode, but is also stable during the life of the battery.
Back in 2021, the company reported it had achieved a 30% higher energy battery with improved cyclability and is now doing its best to develop it commercially.
Having only invested US$95 million, the study for the project returned a net present value of US$507 million, with yearly net free cash expected to sit at US$63 million, making it an internal rate of return of the project estimated at 40%.
Despite supply chain pressures and surging energy prices making it difficult for many companies around the world, Altech believes it’s well positioned to dramatically reduce supply risks by positioning its operations in Germany and sourcing its graphite and silicon feedstock from surrounding European suppliers.
The ongoing pressures and surges have reinforced the notion of how important European material supply is for European battery and electric vehicle makers.
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