By Arrowhead
Company Overview: Altech Batteries Limited (Altech), previously known as Altech Chemicals Limited, is a specialized battery material technology and development Company based in Australia, with two projects being commercialized in Germany. The Company is commercializing sodium-alumina solid-state grid storage batteries and is also addressing the challenges and shortfalls of lithium-ion batteries, through its disruptive and innovative technologies. The Company is currently working on two leading technology projects, the CERENERGY® Batteries Project and Silumina AnodesTM Battery Materials Project.
In relation to the CERENERGY® Batteries Project, Altech’s initial strategy is to cater to the European grid storage market. The Company has entered into a Joint Venture (JV) Agreement with the world-leading German government-owned Fraunhofer IKTS (Fraunhofer) to commercialize the revolutionary CERENERGY® Battery, which uses common table salt and ceramic solid-state technology. Altech intends to construct a 100 MWh (Train 1) production facility, with a long-term vision of constructing Gigawatt/s battery facilities, on Altech’s land in Saxony, Germany.
Also, at a time of accelerating growth in the electric vehicle (EV) sector, Altech, which has been working on battery material coating technology for use within EV battery anodes, has successfully incorporated silicon into battery anodes and devised a battery anode material with a c. 30% higher retention capacity than a conventional graphite only lithium-ion battery anode. Altech is currently developing a 10 kilotonnes per annum (ktpa) silicon/graphite Silumina AnodesTM coating plant in Saxony, which will also house a pilot plant which is designed to produce up to 43,800 kilograms of anode-grade coated battery material per year i.e., 120 kg per day for production of samples for EV OEMs.
Altech is listed on the Australian Securities Exchange (ASX:ATC) as well as the Frankfurt Stock Exchange (FRA).
Key Highlights: (1) Altech signed the JV agreement with Fraunhofer in September 2022, to commercialize Fraunhofer’s CERENERGY® Battery. Altech has commenced a Bankable Feasibility Study (BFS), which is expected to be completed by November 2023;(2) Apart from building a 100 MWh plant, Altech’s long-term vision is to construct a Gigawatt battery facility in Saxony;(3) Altech has also entered into a strategic partnership with Fraunhofer for fast tracking its Silumina AnodesTM qualification process; (4) Altech has recently completed its Preliminary Feasibility Study (PFS) for the construction of its 10 ktpa Silumina Anodes™ plant, with an NPV of USD 507 mn and an internal rate of return (IRR) of 40.0%; (5) Altech has commenced a Definitive Feasibility Study (DFS) for its Silumina AnodeTM project; (6) Altech is currently progressing with its applications for various federal and state grants, plus other financial support under the battery development program, in relation to its Silumina AnodesTM project; (7) The Company has signed non-binding Memorandum of Understanding (MoU) with SGL Carbon GmbH (SGL) for the supply uncoated synthetic graphite anode material and Ferroglobe Innovation S.L. (Ferroglobe) for the supply of high-purity metallurgical Silicon anode.
Key Risks: (a) Altech’s inability to raise adequate funds could delay the commencement of its projects; (b) Altech's business is subject to various national and local laws and regulations where any amendments to existing laws or the imposition of new laws may have a material adverse effect on the company's proposed business and financial condition; (c) Altech’s dependency on too few suppliers for feedstock materials poses significant supply risk, which could have an adverse impact not only on its financial performance but also on its reputation for fulfilling its obligations.
Valuation and Assumptions: Given the due diligence and valuation estimates, Arrowhead believes that Altech Batteries’ fair market value per share lies in a range of AUD 0.33 to AUD 0.74, derived using Net Present Value (NPV) methodology.
To view the due diligence and valuation report , download the attached PDF.
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