Altech Batteries (ASX: ATC) has reported a busy three-month period to the end of September, spearheaded by ongoing developments with its sodium nickel chloride batteries and flagship CERENERGY battery project in Germany.
The company made moves towards early market entry in Europe, Australia, and the US when it signed a collaboration agreement with global energy solutions company AMPower, which produces conventional zebra-design sodium nickel chloride batteries for uninterrupted power supply (UPS).
The agreement will see the company co-operate on the development of a sodium nickel battery energy storage system (BESS) with each partner having the authority to distribute the co-developed technology under its own brand, while AMPower will also manufacture energy storage packs under Altech branding and distribution.
Faster Cash Flow Pathway
Altech believes this strategy will provide it with a faster pathway to cash flow, strengthening its market presence and branding while it secures funding for its 120 megawatt hours CERENERGY energy storage project in Germany.
The company has received “largely positive initial feedback” from 10 commercial banks and two venture debt funds engaged in the first round of discussions for CERENERGY debt funding.
During the period, Altech selected a large European bank as its preferred financial institution, and the bank’s commercial and technical teams have since completed a site visit to the Dresden testing facilities of CERENERGY joint venture partner Fraunhofer IKTS and is planning a second visit to the prototype production facility in Hermsdorf.
It is also progressing discussions for a federal government guarantee that would further strengthen its ability to secure the necessary debt funding for the project.
CERENERGY Equity Investment
Altech has engaged several investors to assist in securing the equity component of the CERENERGY project’s funding package, and has also announced it will divest a minority interest to the selected investors in a move that could potentially ease its financial burden while bringing in experienced partners who can contribute to the project’s success.
During the quarter, Altech acquired Altech Advanced Materials’ 25% equity interest in Altech Energy Holdings (a 75% shareholder in the CERENERGY project) in return for approximately 532 million ordinary Altech shares (or 21% equity).
The company also bought a 25% equity interest in TM Altech Industries Germany GmbH, which owns the silumina anodes battery materials technology.
The acquisitions provide Altech with an additional 18.75% stake in CERENERGY and an additional 25% stake in silumina anodes, taking its total equity in both projects to 75% and 100% respectively.
