Altech Batteries lands cornerstone LOI for its CERENERGY solid state salt batteries

Altech Batteries has received a letter of intent from ZISP for the purchase of 30MWh of its CERENERGY sodium-alumina solid-state batteries per annum for five years.

Altech’s salt batteries have received a vote of confidence. Pic: Getty Images

• Altech Batteries secures letter of intent for 150MWh of its CERENERGY® sodium-alumina solid-state batteries

• Order will underpin financing process fo proposed 120MWh battery plant

• Company has raised $6.47m from its entitlement offer to progress its CERENERGY® and Silumina AnodesTM projects

Special Report: Altech Batteries has received a clear validation of its CERENERGY® sodium-alumina solid-state batteries with the execution of the first letter of intent for the purchase of 150MWh of battery packs.

Under the strategic offtake letter of intent, Germany’s Zweckverband Industriepark Schwarze Pumpe (ZISP) will purchase 30MWh (megawatt hours) of energy storage capacity annually – consisting of 1MWh GridPacks – for the first five years of production from Altech Batteries’ (ASX:ATC) planned 120MWh plant.

The offtake represents a quarter of the plant’s capacity and will likely help underpin the financing process.

The price of these batteries has been agreed and aligned to the company’s definitive feasibility study assumptions while purchase of the batteries is subject to performance tests, battery specifications and the batteries meeting customer requirements.

CERENERGY® batteries use common table salt and ceramic solid state technology, making them up to 50% cheaper than regular lithium-ion batteries due to not using critical minerals like lithium, nickel and cobalt.

They are completely fire and explosion proof, have a life span of more than 15 years and operate in all but the most extreme conditions.

ATC adds that the letter of intent highlights both parties’ commitment to transition the Schwarze Pumpe Industrial Park, which has its water, waste, road infrastructure, and energy needs managed by ZISP, entirely from coal to renewable energy.

This is aligned with Germany’s nationwide shift from coal-fired power to renewable energy solutions and supports ZISP’s goal of achieving certification under the EU’s "Zero Valley" initiative, making Schwarze Pumpe a model for renewable energy storage and generation.

Battery production

ATC plans to manufacture the CERENERGY® GridPacks at its eight-hectare site within Schwarze Pumpe.

The plant is expected to start production from mid-2027, which will also mark when deliveries to ZISP will begin.

“This Letter of Intent marks a significant milestone for Altech Batteries as it represents our first offtake agreement for the CERENERGY® GridPack Battery Energy Storage System,” chief executive officer Iggy Tan said.

“The interest shown by the Schwarze Pumpe Industrial Park Association (ZISP) in our technology is a clear signal of growing demand for innovative energy storage solutions, particularly as industries shift toward 100% renewable energy.

“It's encouraging to see potential customers like ZISP recognise the value of our scalable and reliable battery systems. This LOI not only validates the commercial potential of our CERENERGY® technology but also supports our future growth strategy, as securing such agreements strengthens Altech’s position for project financing and expansion.”

He adds that the company expects the agreement to be just the start of what is expected to be a significant increase in battery demand.

Well-funded

ATC has also raised $6.47m through a partially-underwritten entitlement offer to eligible shareholders of one share priced at 4c each for every eight shares held.

Participants will also receive one free attaching option exercisable at 6c and expiring on December 31, 2025, for every two shares subscribed.

This was underwritten to the tune of $5m by MAA Group Berha – a related entity of director Tunku Yaacob Khyra.

Proceeds from the entitlement offer and the earlier placement raising $405,000 will be used to progress the company’s CERENERGY® and Silumina Anodes^TM projects.

Tan added that the company is extremely focused on securing offtake as well as finance to commence plant construction.

This article was developed in collaboration with Altech Batteries, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Altech Batteries lands cornerstone LOI for its CERENERGY solid state salt batteries