Altech Batteries Ltd (ASX:ATC, OTC:ALTHF) has launched a share purchase plan (SPP) to raise up to A$5 million in support of its working capital needs for the CERENERGY® battery and Silumina Anodes™ battery materials projects.
The company is offering shares at A$0.065 each with one free attaching option for every two shares subscribed for.
These options will be exercisable at $0.08 per share and expire on April 30, 2026.
Funds will be applied to the commissioning and equipping of the Silumina Anodes™ pilot plant as well as to fabricate two CERENERGY® ABS60 60KWh battery packs.
Highly competitive battery profile
"The results of the definitive feasibility study (DFS) reinforce the economic soundness and potential of our CERENERGY® project,” Altech Batteries CEO Iggy Tan said.
“We are excited about the positive trajectory and are fully committed to advancing to the funding phase to realise this innovative venture.
“The project's economics remain compelling, with an earnings before interest, tax, depreciation or amortisation (EBITDA) margin of around 47%, even at its initial production capacity.
“This aligns with the projected growth of the grid storage market, estimated at a remarkable 28% Compound Annual Growth Rate (CAGR).
“Additionally, the project offers a low lifetime levelised cost of storage at €0.06 per kilowatt-hour (kWh), compared to €0.149/kWh for lithium-ion batteries, further enhancing its competitive advantage.”
In real terms, that storage difference offers an almost 60% reduction in costs per kWh of stored energy, providing a sizable cost advantage when compared with lithium-ion batteries.
The company’s DFS also revealed a net present value (NPV9) of €169 million and free cash flow of €48 million per year, the equivalent of about A$280 million NPV and A$80 million free cash flow.
Altech says it is continuing to move forward with finance and offtake agreements for the CERENERGY® project, where the company plans to build a 120-megawatt-hour production facility in Germany to produce CERENERGY® battery modules.