Battery developer Altech Chemicals [ASX:ATC] surged on Wednesday on plans to commercialise the 100MWh Sodium Alumina Solid State (SAS) battery project for grid storage.
Altech executed a joint venture agreement with German battery institute Fraunhofer IKTS (IKTS) to commercialise IKTS’s CERENERGY battery.
Altech believes CERENERGY batteries are the ‘game changing grid storage alternative to lithium-ion batteries’.
ATC shares rose more than 25% on Wednesday, bucking a steep sell-off in the wider market.
Year to date, ATC shares are down 15%.
Source: www.tradingview.com
Altech’s JV with German company to commercialise ‘revolutionary’ batteries
ATC has announced a Joint Venture (JV) with ‘world-leading’ German battery company, Fraunhofer (IKTS) to commercialise the institute’s Sodium Alumina Solid State Battery (CERENERGY batteries).
Altech will be the majority owner of the JV, at 75%.
The proposed 100 MWh project facility is to be constructed on Altech’s existing land in Schwarze Pumpe, Germany.
ATC estimates the plant will produce 10,000 SAS battery modules a year, rated at 10 KWh each.
Altech said it anticipates the modules to fetch between €7,000 and €9,000 per module, or €700–900 per KWh, at final pack costs.
Altech’s new JV partner — IKTS — has reportedly spent around €35 million on R&D and currently operates a pilot plant in Hermsdorf worth €25 million.
Having been in the game for the past eight years, IKTS has estimated total cost of production for CERENERGY® batteries will be 40–50% cheaper than for lithium batteries.
What about these ‘revolutionary’ batteries?
Going by the name CERENERGY®, these batteries are reportedly fire and explosion proof, can operate in extreme climate conditions, and have twice the endurance of regular lithium-ion batteries (more than 15 years battery life).
The batteries are said to be made of common table salt and nickel, cheaper and easier to obtain than critical lithium-ion battery materials, such as lithium, graphite, copper, or cobalt, limiting ‘exposure to critical metal price rises and supply chain concerns’.
Similar batteries have already been tested by IKTS, and the latest version is now in the final phases of product testing.
This means that the final CERENERGY® battery modules, at 10 KWh each, are nearly ready to be released into the commercial world.
The partners have already begun planning for a Bankable Feasibility Study on their JV commercialisation. After this is complete, further construction plans can also get underway.
Source: ATC
ATC claims lithium alternatives are the way to go
Altech is speculating that the grid energy storage market is expected to grow 28% in CAGR in the next few decades, and to go from US$4.4 billion in 2022 to US$15.1 billion by 2027.
Source: ATC
The alternative-battery developer says that the SAS battery can ‘provide high security, at low acquisition and operating costs’.
Clearly Altech is banking on a strong future in lithium alternative batteries, citing some of the challenges with lithium batteries (the fire hazard aspect, the temperature sensitivities costs, and availability and supply chain issues — even geopolitical risks) that alternative can avoid.
With EV markets scrambling to find the most innovative, cost-effective ways to power our net-zero future, we will have to see what advancements surface next.
The race is on
The electric vehicle (EV) market is rapidly expanding, boosted further by government initiatives and funding programs supporting production worldwide.
But our energy expert, Selva Freigedo, says the global transition to EVs means the industry faces a supply crunch, sending battery materials into a new type of frenzy.
If you’d like to know more, and ensure you’re prepared for the inevitable, checking out Selva’s report here.
Regards,
Kiryll Prakapenka,
For Money Morning
