AnteoTech’s strong 1H FY2025 performance setting the stage for future growth

AnteoTech growing revenues with its commercial focus
Progress on Ultranode silicon-dominant anodes, with an opportunity for sales agreement with Mercedes-Benz
Five-year agreement with India’s Serum Institute guarantees revenue of $1.8m

Special Report: AnteoTech has described the first half of its 2025 financial year as representing “a period of advancement” of the commercialisation initiatives for its proprietary technologies.

Highlighting this, the company’s revenue from ordinary activities increased by 74% compared to the previous corresponding period to $660,000.

AnteoTech (ASX:ADO) attributed the revenue growth to the company’s marketing-led and customer centric approach gaining traction.

ADO has continued to expand its database of results with the validated performance improvements from its products attracting increasing interest from prospective commercial partners and customers.

Within its Clean Energy Technology business, targeted opportunities have been identified with prospective customers across the battery value chain, including consumer electronics manufacturers, electric vehicle manufacturers, battery manufacturers and specialist chemical groups.

Its expertise in developing high-silicon anodes is also being increasingly recognised – a point reinforced by the company receiving its first commercial order for Ultranode battery anodes from German luxury car manufacturer Mercedes-Benz in October 2024.

The company is working on progressing towards the targeted anode benchmark of 1000 charge cycles – the full discharge and accompanying recharge of the battery’s energy – and 80% energy retention that is the milestone standard for EVs.

The silicon-dominant Ultranode anodes are currently capable of 900 cycles at 70% energy retention which enables the company to target consumer electronics batteries and a wide range of advanced chemical companies with the performance improvements arising from increasing silicon.

These anodes are already proven to deliver a significant improvement in energy density, which increases the time between charging and, for EVs increases the range of travel.

ADO added that its lead product, Anteo X is now production ready after the production facility was validated. Anteo X has been validated to produce an increase of more than 30% in energy density and a decreased cost of manufacture when used across a range of anode formulations.

It has held discussions with separator material companies, specialty chemical companies and carbon nanotube manufacturers to demonstrate the value of integrating Anteo X into existing technologies to enhance battery performance and reduce cost of the anodes.

Initial results from both separator material and carbon nano-tube manufacturers have been promising.

Life sciences and corporate

Within its Life Sciences business, the company is focusing on progressing sales in India.

This country has been identified as a key growth market, given its significant population and the focus of the Indian government to deliver ‘Healthcare to all’.

During H1 FY2025, ADO entered into a five-year commercial supply agreement with the Serum Institute of India with minimum guaranteed revenues of ~$1.8m over the five-year term.

The Serum Institute is the world’s largest vaccine manufacturer, and the company said it is pleased to work with it on existing and future opportunities.

On the corporate side, the company reduced overheads by 25% to $4.2m due to its commercial focus.

It also secured a $3.99m matched funding grant from Australian Renewable Energy Agency – adding to a $1.4m Queensland government grant – to fund development of its second generation Ultranode battery anodes.

Accelerating programs

ADO is actively working to accelerate programs with opportunities across the battery value chain and those most likely to deliver commercial outcomes in the near term.

Most of these opportunities are in the consumer battery sectors, where the path to adoption may be quicker than the current EV evaluations underway.

It is also working with Mercedes-Benz to continue evaluation of Anteo X and Ultranode with the goal to reach an agreement on Ultranode sales this year, along with sales of Anteo X for next generation batteries, contingent on continued positive results from evaluations.

Discussions are also underway with other EV manufacturers as they focus on next generation battery developments with high performance and lowest delivered cost per kilowatt hour.

Additionally, the company is targeting commercial agreements in the US for mobile phone batteries and a development agreement with a high-performance battery company.

For Anteo X, the company is awaiting confirmation from a separator manufacturer, that it reduces shrinkage, which in turn leads to safer batteries, optimising the formulation, and is targeting a commercial agreement.

ADO is also looking to expand usage of its products beyond the current vaccine development program with the Serum Institute, expand into new vaccine programs and other related areas.

This article was developed in collaboration with AnteoTech, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.