Altech Batteries Ltd Stock Market Press Releases and Company Profile
$12m of Grant Support from Saxony State Government
$12m of Grant Support from Saxony State Government

Perth, Oct 13, 2020 AEST (ABN Newswire) - Altech Chemicals Limited (googlechartASX:ATC) (googlechartA3Y:FRA) is pleased to announce that it has received a commitment letter from State Ministry for Economic, Labour and Transport, Saxony, Germany for a grant of EUR7,380,000 (~A$12.2 million). The grant would be available to Altech to support a total investment for construction of a high purity alumina (HPA) plant at the Schwarze Pumpe Industrial Park, Spreetal municipality in the State of Saxony, Germany.

The grant offer follows the July 2020 signing of an option to purchase agreement by Altech's wholly owned German subsidiary Altech Industries Germany Gmbh, for a ~10 hectare industrial site in the Schwarze Pumpe Industrial Park, Saxony (refer ASX announcement 14 July 2020) and a recent joint site visit to the industrial park by Altech alternate director Mr Uwe Ahrens accompanied by various Altech consultants, Saxony State Government officials, Spreetal Municipality officials, and Industrial Park senior management (see figure 1 below). The site visit also marked the commencement of a detailed due diligence and feasibility study process by Altech, to determine the viability of a second HPA plant in Germany.

In its letter to the Company, the Saxony state government has pledged its continued fullest support for possible construction of a HPA plant by the Company, and advised that the State Ministry for Economics, Labour and Transport (SMWA) and the Saxony Development Bank (SAB) are able to assist in the development of the proposed project. The letter further stated that: "from an industrial policy point of view, Altech's project is very much welcomed in the Region, Lausitz. Against the background of the developing electro mobility and the companies already having been established in this industry segment of electric vehicle construction and battery production in this region, synergy effects are expected. Saxony has industrial experience in battery production, especially in nearby Kamenz area, and has advantageous prerequisites as an industrial and research location".

Altech managing director, Mr Iggy Tan said that the support letter from the Saxony State Ministry is very encouraging. "In essence, the grant means that if we were to determine that it was commercially viable to construct a second HPA plant in Germany, an amount of ~A$12.2 million would be available. Altech however remains focussed on delivering the close of funding for our first HPA plant in Johor, Malaysia and the re-commencement of construction. However, by evaluating this opportunity in Germany we are quickly responding to Europe's push to bring its supply chains closer to home and to increase its self-reliance for critical raw materials - such as those that are used in the manufacture of lithium-ion batteries. We see this as a potential opportunity that cannot be ignored, especially given Altech's strong established links to Germany - both on our share register, our board, and the relationships we have built with SMS group and German Government owned KfW IPEX-Bank", he said.


About Altech Batteries Ltd

Altech Chemical Ltd ASX:ATCAltech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns. 

The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market.

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Contact

Corporate
Iggy Tan
Managing Director
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com

Martin Stein
Chief Financial Officer
Altech Batteries Limited
Tel: +61-8-6168-1555
Email: info@altechgroup.com



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