Altech Batteries receives final payment for 25pc interest in EU subsidiary

• Altech Batteries (ASX:ATC) receives the final tranche of payments for the sale of a 25 per cent interest in its German subsidiary
• The company has been progressing with the deal since December 2020
• Altech’s Silumina Anodes battery tech falls under the subsidiary, AIG
• The Silumina Anodes project recently saw a DFS inked which boasts a value of more than A$1 billion
• Shares last traded at 6.8 cents

Battery tech disruptor Altech Batteries (ASX:ATC) has received €1.583 million (A$2.580 million) from Frankfurt-listed AAM for a 25 per cent stake in the former’s German subsidiary.

AAM now boasts a 25 per cent share of Altech Industries Germany (AIG).

The deal has been underway since December 2020, with the payments being made to ATC in three instalments since that time.

Silumina Anode rights

Altech Managing Director Iggy Tan noted AAM now hold partial rights to AIG’s patent Silumina Anodes technology – a keystone piece of Altech’s overall business case.

Altech’s Silumina Anodes battery materials project most recently saw a definitive feasibility study (DFS) published in December last year.

“Altech already has non-disclosure agreements in place with some of the world’s biggest automobile manufacturers,” Mr Tan said.

“The receipt of the deferred consideration for €1,583,333 is well received and will be used for advancing Altech’s Silumina AnodesTM battery materials project.”

ASX’s presence in Saxony

Altech’s Silumina Anodes project is located in the EU jurisdiction of Germany, specifically, Saxony.

The DFS for that project foresees a first stage 8000 tonnes per annum (tpa) plant with an NPV of €684 million (A$1.1 billion) with a payback period of 2.4 years.

This equals out to about 120 kilograms of product, per day – which Altech intends to “assist in securing an offtake agreement with an end-user”.

Shares last traded at 6.8 cents.