Altech Batteries Ltd (ASX:ATC) has received a bull-case valuation of A$0.39 per share, according to a study by Pitt Street Research.
The company’s pipeline includes two key battery technology projects which are:
- CERENERGY® - sodium chloride solid-state batteries for grid energy storage (solar, wind etc.); and
- Silumina AnodesTM - an EV battery anode material that increases battery capacity by utilising high-purity alumina coating.
Shares today on the ASX have been as much as $0.095 and the company's market cap is approximately A$134.12 million.
Following are the excerpts from Pitt Street’s report:
CERENERGY: a game-changing battery pack
CERENERGY is a solid-state sodium chloride (SAS) battery developed and patented by the Fraunhofer Institute for Ceramic Technologies & Systems, the world-leading German government-owned scientific research organisation.
CERENERGY is a serious alternative to lithium-ion batteries for several reasons, including that they are fire- and explosion-proof, have a far longer-life span and can operate in extreme climates.
In September 2022, Fraunhofer and Altech announced a JV to commercialise the CERENERGY® battery - 75% owned by Altech and associated entity Altech Advanced Materials AG, with Fraunhofer owning 25%.
The JV is commercialising a 100 MWh battery plant in Germany on Altech’s land.
Silumina Anodes pilot plant nearing completion
Silumina Anodes is a composite silicon-graphite anode material, that uses patented high-purity alumina coating technology.
The resultant product has been tested and shown to increase capacity of the conventional EV lithium-ion battery by ~30%.
By Q4 of 2023, Altech anticipates having completed construction of a pilot plant in Germany, that will produce 120 kilograms per day of the Silumina Anodes product.
The product will be provided to potential end users for their internal test work.
Concurrently, Altech is preparing a definitive feasibility study (DFS) for a 100% green energy plant in the Schwarze Pumpe district of Germany that will be able to produce 10,000 tonnes per annum of Silumina Anodes.
A PFS has already been completed, reflecting an NPV of US$507 million.
Valuation range of A$0.28-0.39 per share
Using a DCF methodology, we value ATC at A$0.28 per share in our base-case scenario and A$0.39 per share in our bull-case scenario.
We expect ATC to re-rate after concluding an offtake agreement for CERENERGY® batteries and completing a DFS for the Silumina Anodes project.