Altech Batteries - Significant Advances in CERENERGY ABS60 BatteryPack Prototypes and Strategic Financial Moves
ATC (ATC) Share Update July 2024 Tuesday 30th
Altech Batteries Announces Major Progress in CERENERGY ABS60 BatteryPack Prototypes
Altech Batteries Limited (ASX: ATC) has made significant strides in the development of its CERENERGY ABS60 BatteryPack prototypes and has appointed KPMG as its financial advisor for the 120MWh CERENERGY battery project in Germany.
Instant Summary:
- Completion of CERENERGY Cell Contacting System manufacturing.
- All cells for the first prototype have been completed.
- Improved cell electrode design showing outstanding results.
- Fraunhofer's tests indicate better-than-expected capacity.
- Welding of cells to the Cell Contacting System is underway.
- Appointment of KPMG to assist in financing the 120MWh CERENERGY battery project.
Update on CERENERGY ABS60 BatteryPack Prototypes
Altech Batteries has provided an update on its CERENERGY ABS60 BatteryPack prototypes. The company, in collaboration with its joint venture partner Fraunhofer, has made excellent progress on the fabrication of two 60kWh CERENERGY ABS60 BatteryPack prototypes. All components for the first BatteryPack have now been fabricated. Altech is currently completing the welding of the cells to the Cell Contacting System. Once this is done, the five completed battery modules will be delivered to Fraunhofer IKTS in Dresden, where they will be mounted into the ABS60 BatteryPack, completing the first prototype. This BatteryPack will then be available for testing and demonstration to potential customers, aiding Altech in securing offtake and finance for the 120MWh CERENERGY battery plant to be constructed on Altech's land in Germany.
Improved Cell Electrode Design
During the fabrication process, the Altech and Fraunhofer team made several design improvements to the cell's positive probe. These enhancements aim to boost the cell's energy capacity and reduce the nickel content. The 'V2' design of the positive probe allows for slightly faster charging and discharging while lowering the unit costs of the battery. Testing revealed that most cells had higher-than-expected energy capacities, strongly supporting the chosen electrode design. With all cells manufactured according to the series design and optimized processes, the best cells to date have been completed.
Cell Contacting System and Module Welding
The Cell Contacting System (CCS) has undergone stringent testing and has now been completed and delivered by key supplier Hofer AG. The CCS was delivered to Fraunhofer IKTS in Dresden, where all parts of the modules will be collected to assemble each of the five modules. Each module contains 48 cells, which are currently being welded to the CCS by an external service provider. After welding is completed, the ABS60 BatteryPack with its 60kWh capacity can be completely assembled.
Appointment of KPMG as Adviser for CERENERGY Financing Phase
Altech Batteries has appointed global corporate advisory firm KPMG to assist in securing finance to construct the 120MWh CERENERGY battery plant in Germany. KPMG will act as financial advisor to the company on potential financing transactions and provide services on public grant/subsidy programs. Altech is moving forward to obtain sales offtake for the project and sourcing finance to construct the plant. Altech's Chief Financial Officer Martin Stein stated, 'In appointing KPMG with its global network, strong reputation, and credibility, Altech believes that KPMG will greatly assist with the financing process for its 120MWh CERENERGY battery plant in Germany and will strengthen Altech's position in securing the finance required.'
Results of Share Purchase Plan
Altech announced the results of its Share Purchase Plan (SPP) on 21 April 2024. The company received applications from eligible shareholders amounting to proceeds of $3,721,000. This represented 57,246,037 shares at $0.065 per share and 28,622,799 free-attaching options with an exercise price of $0.08 per share expiring on 30 April 2026. The shares and options were issued and allotted on 21 May 2024, and application for quotation of shares on the ASX was made on the same day. Altech's CEO and MD Iggy Tan expressed gratitude to shareholders for their support and highlighted the importance of the funds in progressing both the CERENERGY battery project and the Silumina Anodes battery materials project.
The advancements in the CERENERGY ABS60 BatteryPack prototypes and the appointment of KPMG as a financial advisor are significant milestones for Altech Batteries. These developments are likely to positively impact the company's stock as they demonstrate progress in product development and strategic financial planning. The successful completion and demonstration of the prototypes could attract potential customers and investors, boosting market confidence.
Investor Reaction:
Analysts are likely to view these updates positively, as they indicate substantial progress in Altech's battery technology and strategic financial planning. The appointment of KPMG, a reputable global advisory firm, adds credibility to Altech's efforts to secure financing for its 120MWh CERENERGY battery plant. Investor sentiment may improve as a result of these developments, although the actual market reaction will depend on subsequent milestones and financial outcomes.
Conclusion:
Investors should keep an eye on Altech Batteries' progress with the CERENERGY ABS60 BatteryPack prototypes and the financing efforts for the 120MWh battery plant. These developments could have a significant impact on the company's future growth and market position. Staying informed about Altech's strategic moves and technological advancements will be crucial for making informed investment decisions.