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- Altech Batteries (ASX:ATC) shares have surged more than nine per cent today following the release of its DFS
- The DFS is for its 8000tpa alumina-coated metallurgical silicon plant in Saxony, Germany.
- AIG and AAM are producing patented alumina-coated silicon battery anode materials called Silumina Anodes
- Because the plant uses graphite-silicon anode material, the potential for a reduction in CO2 emissions could reach between 35 and 52 per cent
- Altech calculates the capital cost for the project to be A$182 million, and pre-tax NPV to be A$1.11 billion, attracting an IRR of 34 per cent
- ATC shares are up 9.38 per cent, trading at 7 cents at 12:33 pm AEDT
Altech Batteries (ASX:ATC) shares surged more than nine per cent today following the release of its highly anticipated definitive feasibility study (DFS) for an 8000-tonne per annum (tpa) alumina-coated metallurgical silicon plant in Saxony, Germany.
Altech Industries Germany GmbH (AIG) and Altech Advanced Materials AG (AAM) are preparing to produce patented alumina-coated silicon battery anode materials known as Silumina Anodes.
This product, manufactured exclusively under license from Altech, is aimed to meet the rapidly increasing demand in the European and US electric vehicle and grid storage battery market.
What did the DFS reveal?
The DFS has enabled Altech to expand the plant from an initial 15 gigawatt-hours (GWh) to 120 gigawatt-hours (GWh), increasing the battery energy density by at least 30 per cent.
Altech has calculated the capital cost for the project to be €112 million (A$182 million) and pre-tax net present value to be €684 million (A$1.11 billion), with an internal rate of return of 34 per cent.
The payback period for the plant finances is 2.4 years, and Altech predicts an 18 per cent CAGR growth during that time for silicon in battery anodes until 2035.
The project has been assessed for its CO2 footprint, and due to its use of graphite-silicon anode material, the potential for a reduction in CO2 emissions could range between 35 and 52 per cent.
The pilot plant is now in its final stages for product qualification.
Altech has executed NDAs with two German automakers, two US automakers, one US battery materials supply company, and one European battery maker, all involved in the process.
ATC shares were up 9.38 per cent, trading at 7 cents at 12:33 pm AEDT.
