Altech Batteries Ltd Stock Market Press Releases and Company Profile
Altech Invitation Received to Construct HPA Plant in Germany
Altech Invitation Received to Construct HPA Plant in Germany

Perth, Sep 18, 2019 AEST (ABN Newswire) - Altech Chemicals Limited (googlechartASX:ATC) (googlechartA3Y:FRA) is pleased to announce that it has received an invitation letter from the state government of Saxony, Germany, proposing that Altech consider the construction of a second high purity alumina (HPA) plant in the state.

In the letter, the state government of Saxony led by Minister-President, Mr Michael Kretschmer proposed to Altech that it should consider locating its next HPA plant in the industrial area of Schwarze Pumpe, which is located 100km north-east of Dresden, Saxony. As HPA is recognised as a critical component in the lithium-ion battery materials supply chain, an Altech HPA plant in Saxony would be well positioned to support the regions push to create a major electric vehicle battery industry, with a secure materials supply chain.

The German state of Saxony is located in the east of the country and borders both the Czech Republic and Poland. Saxony is the sixth most populous of Germany's sixteen states (population ~4 million) and tenth in terms of land area. The automobile industry has again become one of the pillars of Saxon industry, as it was in the early 20th century; the state hosts production sites for Volkswagen, BMW, Porsche and Daimler. Saxony is a leading engineer training ground and has excellent research facilities like the Fraunhofer Institute for Electronic Nano-systems, which is researching ceramic Nano technology in energy storage (HPA). Saxony's road network counts as the best developed in Germany and rail transport is one of the state's traditional strengths. Three efficient Elbe River inland ports have been developed connecting to the North German seaports and international maritime trade.

Altech's German advisers recently met with Minister-President of Saxony, Mr Michael Kretschmer to discuss its invitation. Based on these positive initial discussions, Altech intends to undertake further evaluation, which will include research on various government grants that the Company has been advised may be available in support of the establishment of a HPA plant in eastern Germany.

Whilst the Company remains focused on the close of funding and the construction of its Malaysian HPA plant, it also recognises the forecast significant deficit of HPA supply commencing in 2020 and the opportunity that this may present in terms of a 2nd HPA plant. Specifically, CRU Consulting in its most recent HPA market outlook report, identified a HPA 4N+ supply shortfall of approximately 20,000tpa in 2021 (equivalent to ~4 of Altech's 4,500tpa plants), which it forecast would expand to a shortfall of ~50,000tpa by 2028 (refer ASX Announcement of 3 July 2019 for further details). To this extent, the Company is of the view that there is merit in commencing early stage planning for additional future HPA plants, now. Considering the invitation letter from the Saxony state government and the strong signals from the European Union (EU) on its desire to foster a rapid transition to electric vehicles, and to establish a fully integrated materials supply chain to underpin the transition, the Company's current strategic thinking is for its next HPA plant to be located in Europe.

Altech recognises that Saxony would be well positioned to support Europe's push to create a major electric vehicle (EV) battery industry and associated materials supply chain. Stringent EU 2020 CO2 emission standards (95g per kilometre) are paving the way for the rapid displacement of internal combustion engine vehicles with EVs. To meet the new standards, European automotive manufacturers have announced plans for new EV model releases - both fully electric and/or hybrids. Also, a range of companies have recently committed to constructing or expanding battery cell plants in the EU, consequently by 2023/24 it is expected that EV battery manufacturing capacity will be 147GWh for the EU and global battery capacity is likely to be greater than 800GWh. Europe has correctly identified risks along the EV supply chain and has outlined the need for regional integration of the battery/EV production process. The current reliance on Asian suppliers has been identified as a concern. Importantly, the EU has a co-ordinated strategy - offering incentives to buyers, setting strict CO2 emission standards, revealing new grants and subsidies for battery companies to secure production facilities and raw materials within Europe. Volkswagen has publicly stated that it would like to see all of its EV manufacturing supply chain steps established in Europe.

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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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