Altech Chemicals Ltd (ASX:ATC) is trading higher after executing a Joint Venture Shareholders’ Agreement with leading German battery institute Fraunhofer IKTS to commercialise IKTS’ revolutionary CERENERGY® Sodium Alumina Solid State (SAS) Battery that is free of lithium, graphite, copper and cobalt.
The SAS CERENERGY® battery uses common table salt and ceramic solid-state technology and Altech believes that these batteries are the “game-changing” grid storage alternative to lithium-ion batteries.
CERENERGY® batteries are fire and explosion-proof, have a life span of more than 15 years and operate in extreme cold and desert climates.
Shares have been as much as 23.8% higher to A$0.099 and have risen from A$0.044 at the market close on June 23.
Altech involvement
Altech and associated entity Altech Advanced Materials AG will hold 75% of the joint venture company, which will commercialise a 100 MWh project to be constructed on Altech’s land in Schwarze Pumpe, Germany.
The battery technology uses table salt and nickel - is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns.
SAS technology has been developed by Fraunhofer IKTS over the last eight years and has revolutionised previous technology, allowing higher energy capacity and lower production costs.
Commercialisation comes next
SAS-type batteries, in terms of capacity, have already been successfully tested in stationary battery modules. The IKTS SAS batteries are in the final phase of product testing and ready to commercialise.
IKTS has spent in the region of EUR 35 million on research & development and operates a EUR 25 million pilot plant in Hermsdorf, Germany.
Ceramic solid-state electrolyte at IKTS pilot facility.
The final CERENERGY® battery modules, at 10 KWh each, are specially designed for the grid storage market and have been undergoing extensive performance testing in Germany.
These modules are designed to fit in racks housed in sea containers that can be deployed for grid storage.
Altech fits criteria
IKTS has been looking for an entrepreneurial partner that has German land available, has access to funding, is a builder of projects, has battery background and has technology in alumina used in ceramics.
Altech fitted the criteria and a Joint Venture Shareholders’ Agreement was executed. Altech group will own 75% of the project with IKTS 25% free carried. The intellectual property will be licensed exclusively to the JV.
Altech and IKTS have elected to develop a 100 MWh SAS battery plant (train 1) on Altech’s site in Saxony, Germany.
Market growth
The target market for this project will specifically focus on the grid (stationary) energy storage market which is expected to grow by 28% Compound Annual Growth Rate in the coming decades.
Other market positives are that the global grid energy storage market is expected to grow from US$4.4 billion in 2022 to US$15.1 billion by 2027 while the market is expected to grow from 20 GW in 2020 to more than 3,000 GW by 2050.
Altech believes that SAS batteries can provide high security, at low acquisition and operating costs, for the stationary energy storage market.
Production plan
The proposed battery plant will produce 10,000 SAS battery modules annually, rated at 10 KWh each. These SAS battery modules are expected to sell for between EUR 7,000-9,000 per module, or EUR 700-900 per KWh, at final pack costs.
SAS cells in battery module.
IKTS has estimated that the total cost of production for CERENERGY® batteries will be 40%-50% cheaper than lithium-ion batteries.
The JV partners have started the planning process for a bankable feasibility study required for the commercialisation process.
Once train 1 is built and operating, the longer-term vision for the joint venture is to construct additional trains or a Gigawatt battery facility.
What is a CERENERGY® battery?
A CERENERGY® battery consists of a ceramic tube (conductive to sodium ions but insulator for electrons) with a positive terminal in the centre of it.
The solid ceramic tube (solid state technology) performs the same function as a liquid electrolyte in a lithium-ion battery, allowing sodium ions to transfer through it.
IKTS has developed solid-state technology to produce these large solid ceramic tubes with micro-structures that allow fast sodium ion transfer.
The ceramic tube is filled with cathode granules consisting of common table salt and nickel. To ensure contact between the solid cathode granules and the ceramic electrolyte tube, the tube is flooded with a sodium aluminium chloride medium.
The ceramic tube is housed in a steel canister which acts as the negative terminal. The positive and negative terminal tabs are installed at the top of the cell for electrons transfer and connection to other cells.
SAS cell with positive and negative terminal.
Each cell operates at 2.58V and a collection of 40 cells are installed in a refractory insulated module casing. Each module is rated at 10KWh and 100 Ah.
The technology highlights for CERENERGY® batteries are high specific energy; excellent performance and cycle life in harsh operating environments; ultra-long battery life span and low environmental impact.
The advantages
Advantages of the SAS batteries are:
- They are fire and explosion proof;
- They have a large operating temperature range for use in cold and desert climates;
- They have a longer battery life span of beyond 15 years compared to 7-10 years;
- SAS batteries are lithium-free and use common salt;
- There are no cobalt supply chain and ethical concerns; and
- No graphite and copper supply risks.