Altech Batteries raises $6m to establish UPS battery sales, advance commercialisation of German facility

• Altech Batteries raises $6m through share placement at 4.5c each with free options attached
• Funds to drive UPS battery sales across Europe, Australia and US infrastructure markets
• Proceeds will progress funding to commercialise 120MWh CERENERGY battery plant in Germany

Special Report: Strong market interest in Altech Batteries’ initiatives have crystallised in the form of a $6 million placement of shares priced at 4.5c each.

Binding commitments were made for the placement of 133.3m shares which includes one free attaching option exercisable at 6.5c and expiring on October 31, 2028.

“We are encouraged by the strong market interest in our current initiatives,” Altech Batteries (ASX:ATC) managing director Iggy Tan said.

“This capital raise comes at an exciting time for Altech as it establishes its selling, distribution and installation infrastructure for AMPower produced Altech branded sodium nickel chloride (SNC) batteries, and advances the commercialisation of its 120MWh CERENERGY® battery project.

“With the operation of the Silumina Anodes™ pilot plant completed and NDAs signed with major US and European car manufacturers, Altech is readying itself to provide commercial samples of the product,” Tan said.

“A portion of the funds will also be allocated to a preliminary study for a larger 4 GWh battery facility, marking the next significant step towards commercialisation.”

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Near-term milestones

ATC recently launched – in conjunction with AMPower – a new 15-kilowatt-hour SNC uninterruptible power supply battery system for Europe’s gas and hydrogen pipeline infrastructure.

The system is intended to be a drop-in replacement for lead-acid battery systems which ensure that safety equipment, emergency lighting, fire and gas detection, communication systems and critical control systems continue to function under all circumstances – including grid outages or external shocks.

Funding from the placement will help the company execute initial sales of these UPS batteries targeting critical infrastructure customers across Europe, Australia and the US.

Increased balance sheet flexibility will also allow ATC to source project financing for the 120MWh CERENERGY® production facility in Germany, which will support large-scale rollout of the solid-state sodium chloride batteries.

The company will also be able to complete the larger 90kWh battery pack prototype for the CERENERGY® project and carry out a preliminary assessment for the establishment of a 4GWh Giga factory for large-scale production.

This article was developed in collaboration with Altech Batteries, 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.