Altech Batteries Limited

Release Highlights:

• Altech is delighted to announce the opportunity for eligible shareholders to participate in an equity raising via the launch of its Share Purchase Plan (SPP)
  to raise up to AUD 5M.
• The SPP follows the excellent Definitive Feasibility Study (DFS) for the CERENERGY® project which included an NPV(9) of EUR 169M and free cash flow of EUR 48M p.a.
• The shares issued pursuant to the SPP will be at an issue price of AUD 0.065 per share with one free attaching option for every two shares acquired. The options will be exercisable at AUD 0.08 per share and will expire on 30 April 2026.

DFS Highlights:

• Highly positive Definitive Feasibility Study (DFS) – 120 GridPacks (1MWh) pa
• Capital cost estimated at €156 million with excellent project economics
• Pre-tax Net Present Value (NPV9) of €169 million
• Attractive Internal Rate of Return (IRR) of 19%
• Steady state payback period is 3.7 years, with Annual Revenue of €106 million per annum
• EBITDA of €51 million or margin of around 47%
• Altech Board Decision to Proceed to Funding Phase
• Low lifetime levelised cost of storage €0.06/kWh vs lithium-ion batteries at €0.149/kWh
• Grid energy storage market projected to grow by 28% CAGR
• Grant funding applications underway
• Equity and mezzanine financing discussions in progress
• Offtake for 5 years production in progress

Release Highlights:

• Excellent progress with two 60 kWh battery pack prototypes
• Pilot plant re-design at Fraunhofer IKTS Hermsdorf for prototype manufacture
• All prototype materials have been procured from suppliers
• Ceramic tube manufacture is 50% complete
• Cell assembly progressing well with more than half completed
• Low reject and defect rates experienced
• Two battery vacuum casings delivered and undergoing heat loss testing
• Finalization of prototypes will be mid 2024

Altech Batteries Limited provides additional information in relation to the announcement on 21 December 2023 of the Definitive Feasibility Study (DFS) for an 8,000tpa (120 GWh) alumina-coated metallurgical silicon plant envisaged for Saxony, Germany.

Highlights:

• Altech Batteries Limited (ASX: ATC, FRA: A3Y) successfully sold a 25% stake in Altech Industries Germany GmbH (AIG) to Altech Advanced Materials AG (AAM).
• Altech received the final €1,583,333 instalment from AAM, completing the €5.0 million deal, structured with an Initial Cash Consideration of €250,000 and Deferred Consideration in three equal parts.

Definitive Feasibility Study Highlights:

• Highly positive Definitive Feasibility Study for the 8,000tpa Silumina Anodes^TM project
• 8,000 tpa alumina-coated metallurgical silicon only
• Customers to blend coated silicon (10%) with their uncoated graphite source
• Means expansion from 15 gigawatt-hours (GWh) to 120 gigawatt-hours (GWh)
• Increase of battery energy density by at least 30%
• Capital cost estimated at €112 million with outstanding economics
• Pre-tax Net Present Value (NPV10) of €684 million
• Attractive Internal Rate of Return (IRR) of 34%
• Payback period is 2.4 years
• Forecast 18% CAGR growth of silicon in battery anodes till 2035
• Green accredited project using renewable energy
• Pilot plant construction in final stages for product qualification
• NDAs executed with two German automakers, two US automakers, one US battery materials supply company and one European battery maker