Altech Batteries funding progresses for German battery project

Altech Batteries has provided an update on funding for its CERENERGY sodium-chloride solid-state battery project in Saxony, Germany, according to a statement on Wednesday.

The company said a large European bank was in the process of being mandated to provide debt funding, with the bank's technical due diligence team conducting a final site visit. The bank's teams have visited Dresden and the Fraunhofer testing facilities, with plans to visit Hermsdorf, Germany, where prototype production is located.

Altech said it had engaged ten commercial banks and two venture debt funds in initial financing discussions and selected a preferred financial institution based on feedback received. The company said the chosen bank had a track record in providing debt funding for technology-driven projects in the innovation sector.

The company is also progressing discussions for a federal government guarantee to strengthen its ability to secure debt funding. Officials from the Ministry of Finance have been briefed on the initiative, with the due diligence process for the application underway.

In parallel with debt financing efforts, Altech said it had engaged equity advisers to secure the equity component of the project's funding package. The company plans to divest a minority interest in the project to strategic investors who can contribute capital and strategic value.

Altech said it was targeting large utility companies, data centre operators, investment funds, and corporations committed to the green energy transition, as well as industrial partners with relevant know-how and resources. Several non-disclosure agreements have been signed, with draft term sheets circulated to interested parties.

The company has also applied for grants from the State of Saxony, Federal Government of Germany, and the European Union. These grants support renewable energy projects, including those aimed at converting lignite coal to renewable energy sources.

Altech has secured three offtake letters of intent for 100 per cent of its CERENERGY production for the first five years. Zweckverband Industriepark Schwarze Pumpe will purchase 30 MWh of energy storage capacity annually, whilst Referenzkraftwerk Lausitz will buy 30 MWh in the first year, increasing to 32 MWh annually for the following four years. Axsol will exclusively distribute CERENERGY batteries to the Western defence industry.

The CERENERGY battery technology uses table salt and is lithium-free, cobalt-free, graphite-free, and copper-free. The batteries are described as fire and explosion-proof with a lifespan of more than 15 years and can operate in extreme climates.

Picture: credit Altech Batteries