The board of Altech Batteries (ASX: ATC) has shelved the company’s 8,000-tonnes-per-year silumina anodes project in Germany.
A detailed assessment of the project revealed that non-disclosure agreements previously signed with battery and automotive companies had failed to secure strategic funding or any forward sales.
The board determined there would be little likelihood of the project being successful and could not justify the projected operating costs involved in advancing the silumina anodes technology.
It also came to the conclusion that the project—which had been in development for six years—would be unlikely to provide any material benefits to shareholders.
Silumina Anodes Liquidation
Altech Industries Germany GmbH (AIG) — the holder of all assets in relation to the silumina anodes project — will be placed into liquidation on 30 June.
All net proceeds will be passed back to Altech as the sole shareholder.
The block of land secured for the silumina anodes development in Saxony will be sold back to the local government for gross proceeds of approximately $732,000.
The pilot plant and research and development laboratory equipment held by AIG will also be disposed of at the maximum possible price.
Commercialising CERENERGY Project
The liquidation process will allow Altech to focus all funding on commercialisation of its CERENERGY sodium chloride solid-state battery project, also located in Saxony.
Altech is currently at an advanced discussion stage with potential joint venture partners for the project.
The company has received binding conditional approval for up to $80.4 million in funding from Germany’s federal government for the construction of the battery manufacturing facility, representing approximately 30% of the project’s capital expenditure.
Altech is advancing CERENERGY technology toward commercial deployment to support long-duration, safe and sustainable stationary energy storage solutions for the European market.
Refreshed Executive Line-Up
Altech appointed a new board of directors in November as part of a refreshed executive line-up focused on rapidly commercialising its next-generation battery innovations.
The new board is seeking to do so in collaboration with established battery manufacturers, industrial technology groups, chemical producers, or government-supported programs.
It will look to secure one or more qualified strategic partners who can contribute capital, technical resources, and market access to advance Altech’s projects towards commercial reality.
