Altech sodium battery eligible for €46.7M German grant

Altech Batteries has been approved as eligible for a proposed €46.725 million (A$83.55 million) German government grant to further develop its groundbreaking CERENERGY sodium-chloride solid-state battery project in Saxony.

Today’s reveal propels Altech closer to revolutionising grid-scale energy storage with its fireproof, eco-friendly battery technology. The company says it was approved by Germany’s Ministry of Economic Affairs and Energy as eligible to receive the grant under the STARK economic development program to support green energy technologies.

The endorsement recognises Altech’s vision to redefine energy storage with a sustainable alternative to lithium-ion batteries, using the humble power of table salt, and aligns with Europe’s transition towards sustainable, renewable energy sources.

The €46.7 million grant would cover a significant portion of the €156 million capital cost for Altech’s 120MWh CERENERGY battery production facility in Schwarze Pumpe, Saxony. 

A grant approved under the STARK program covers up to 30 per cent of the project’s capital expenditure. For Altech’s project, a total grant of €46,725,802 would be payable, excluding working capital, financing costs and interest during the construction period. 

It is not yet final and conditionally subject to Altech obtaining financial close on its project, as well as German parliamentary approval for it to join the STARK program and funds being available in the nation’s 2026 budget. 

A program grant would underscore the German Government’s confidence in CERENERGY’s potential to deliver safe, durable and environmentally friendly energy storage solutions for the renewable energy grid. 

The STARK program supports projects working towards transitioning regions dependent on fossil fuels to more environmentally friendly renewable energy sources. The program is supported by the European Union.

The financial injection clears the runway for Altech to finalise project financing and break ground in 2025. With a definitive feasibility study projecting a pre-tax net present value of €169 million, annual revenue of €106 million and a 3.7-year payback, the project’s economic credentials are as compelling as its green credentials.

Altech’s CERENERGY batteries, developed in partnership with the prestigious German Government’s Fraunhofer Gesellschaft battery institute, are a game-changer. Unlike lithium-ion batteries, which rely on scarce and pricey minerals such as lithium, cobalt and copper, CERENERGY leverages sodium chloride - common table salt - making it a cost-effective and sustainable alternative. 

These solid-state batteries are fire and explosion-proof, have a lifespan exceeding 15 years and thrive in extreme climates ranging from minus-20°C to more than 60°C. 

With a carbon footprint considerably less than that of lithium-ion batteries, CERENERGY has earned the coveted “Dark Green” rating from Standard & Poor’s, cementing its status as a leader in low-emission energy storage.

The grant bolsters Altech’s strategic push to secure the remaining financing through a mix of debt, equity and offtake agreements. The company has selected a preferred financial institution, a European bank with a track record in providing debt funding for technology projects. No agreement has been locked in as yet, with Altech intending to reveal the agreed details when completed. 

Altech is on the lookout for one or two strategic investors to grab a minority interest in the project, as part of an overall strategy to secure sufficient equity to form part of the funding package. It is sounding out utility companies, data centre operators and investment funds, which hold a deep commitment to the green energy transition.

The company’s streamlined ownership structure, with Altech now holding 75 per cent of the CERENERGY project and all of its Silumina Anodes project, optimises its ability to attract strategic partners.

With plans to scale to gigawatt capacity, Altech is not just building a battery plant - it’s laying the foundation for a global energy storage revolution.

The company is also exploring additional grants on offer from the State of Saxony, the German Government and the European Union.

As the company moves toward construction and final financing, the CERENERGY project stands poised to deliver a safer, greener and more resilient energy future. It proves that sometimes the simplest ingredients - like table salt - can fuel the mightiest transformations.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au