Altech Batteries lands €2.5m facility to fund development of battery projects

Altech Batteries secures €2.5m ($4.28m) bond note to progress its CERENERGY battery and Silumina Anodes battery materials projects
Bearer bonds will be secured against the company’s land in Johor, Malaysia, that has been put up for sale
Proceeds from the land sale will be used to repay the bearer bonds

Special Report: Altech Batteries has secured a €2.5m ($4.28m) bond note subscription deed that will allow it to progress its projects without the dilutionary impact of a capital raising.

These include the ongoing development of its CERENERGY® battery project and the Silumina Anodes battery materials project.

The facility, which requires shareholder approval at a general meeting to be held in late April 2025, enables Altech Batteries (ASX:ATC) to draw down from the facility in €500,000 amounts with interest payable at 7% per annum.

Repayment of the bonds will be made by October 31, 2026, and it is secured by the company’s land in Johor, Malaysia, which has been placed on the market for sale.

Proceeds from the sale of the land is expected to provide sufficient funds to enable the bearer bonds to be repaid in full.

Project progress

ATC recently secured environmental and construction (BimSch-G) approval for its planned 120-megawatt hour CERENERGY® GridPack production facility in Saxony, Germany.

Watch: ATC lock in environmental and construction approval

This positions its joint venture German subsidiary Altech Batteries GmbH to start site clearing and construction, pending successful project funding.

CERENERGY® solid state sodium batteries use plain old sodium chloride – common table salt – and nickel powder without the use of critical minerals such as lithium, copper, cobalt, graphite and manganese.

They are safer and have a longer lifespan than lithium-ion batteries, making them suitable for stationary applications such as grid storage or in data centres.

Several offtake deals have already been reached with Germany’s Zweckverband Industriepark Schwarze Pumpe agreeing to purchase 30MWh of energy storage capacity annually for the first five years of production.

Green hydrogen joint venture RefLau will purchase an initial 30MWh of CERENERGY® energy storage capacity in the first year – and 32MWh per annum for the next four years – while NATO-certified supplier Axsol will buy 10MWh of energy storage capacity in the first year, rising to 30MWh in subsequent years.

Meanwhile, Silumina Anodes represent a breakthrough in battery-material technology that incorporate high-purity alumina in silicon anodes to improve battery performance.

ATC has completed a definitive feasibility study for an 8000tpa plant in Germany and has an operational pilot plant.

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.