Its decision to pivot its core focus to battery technology over the past year, involving a name change from Altech Chemicals, has now reached the point where it needs a capital infusion.

 

The company has just launched a plan to raise almost A$16 million, split between a $3 million placement and a $12.8 million pro-rata entitlement offer.

 

Altech's largest shareholders, Germany's Deutsche Balaton and Delphi Aktiengesellschaft will underwrite the entitlement offer for $6.7 million.

 

The raisings are both priced at 7c per share, below its last traded price of 9.6c.

 

Tan, the company's long-standing managing director, said the cash would help it progress with the commercialisation of the 100 megawatt hour CerEnergy battery project, including the fabrication of two 60kWh battery prototypes and joint venture payments, and completion of the Silumina Anodes pilot plant that is due for commissioning later this quarter.

 

The funding will support feasibility studies for each project. 

 

The CerEnergy sodium alumina solid-state battery has been developed by Germany's Fraunhofer IKTS and has been the focus of €60 million of investment over eight years of development.

 

The 1MW shipping container battery packs are designed to be plug-and-play and modular.

 

The battery is free of lithium, copper, and cobalt, using the company's Silumina Anodes product as a replacement for the graphite anode. 

 

Its stalled plans for a circa A$300 million Johor high purity alumina project in Malaysia that were greenlit in 2017 and saw construction begin the following year remain contingent on raising a further US$244 million in funding.  It would be fed from kaolin from its Meckering mine in Western Australia.

 

Altech started the quarter with A$7.3 million, following a $5.12 million payment for the sale of 25% of its German business interests. A further $2.5 million is due in December.

 

Altech's last major funding round was in November 2021 when $10.3 million was raised pricing new shares at 10.7c each.

 

At 9.6c per share, Altech was capitalised at $137 million. It has traded at 5.1-13c.