Perth, Dec 21, 2023 AEST (ABN Newswire) - Altech Batteries Limited (
ASX:ATC) (A3Y:FRA) is pleased to announce the exceptional results from a Definitive Feasibility Study (DFS) conducted for an 8,000tpa (120 GWh) aluminacoated metallurgical silicon plant planned for Saxony, Germany. This facility, spearheaded by Altech Industries Germany GmbH (AIG) with ownership split of 75% Altech and 25% Frankfurt stock exchange listed Altech Advanced Materials AG (AAM), is set to produce cutting-edge and patented alumina-coated silicon battery anode materials known as "Silumina AnodesTM." This product, manufactured exclusively under license from Altech, is strategically aimed at meeting the escalating demand in the European and US electric vehicle and grid storage battery market.
Highlights
- Highly positive Definitive Feasibility Study (DFS) - 8,000tpa Silumina AnodesTM project
- 8,000 tpa alumina-coated metallurgical silicon only
- Customers to blend coated silicon (10%) with their uncoated graphite source
- Means expansion from 15 gigawatt-hours (GWh) to 120 gigawatt-hours (GWh)
- Increase of battery energy density by at least 30%
- Capital cost estimated at EUR112 million with outstanding economics
- Pre-tax Net Present Value (NPV10) of EUR684 million
- Attractive Internal Rate of Return (IRR) of 34%
- Payback period is 2.4 years
- Forecast 18% CAGR growth of silicon in battery anodes till 2035
- Green accredited project using renewable energy
- Pilot plant construction in final stages for product qualification
- NDAs executed with two German automakers, two US automakers, one US battery materials supply company and one European battery maker
Project Economics
With a capital investment of EUR112 million, Altech's DFS projects a net present value of EUR684 million (NPV10), with net cash of EUR105 million per annum generated from operations. The internal rate of return is estimated at 34%, with investment capital paid back in 2.4 years. Total annual revenue at the 8,000tpa full rate of production is estimated EUR328 million per annum.
All Alumina-Coated Silicon Project
A Preliminary Feasibility Study (PFS) was completed in April 2022 based on production of 10,000 tons per annum (tpa) of Silumina Anodes TM product, comprising 1,000 tpa of high-purity alumina-coated metallurgical silicon incorporated into 9,000 tpa of similarly coated graphite (10% silicon mix). Since then, during the preparation of the Silumina Anodes TM project DFS, Altech has expanded the project's output by eightfold, increasing the capacity from 15 gigawatt-hours (GWh) to 120 GWh, all with the same plant and equipment. According to feedback from potential customers, utilising their existing qualified graphite source is a priority. Furthermore, although there is a marginal advantage in using alumina-coated graphite, the primary appeal for potential customers lies in integrating Altech-coated silicon into their battery products.
Despite initial considerations regarding the benefits of coating graphite with alumina, such as the reduction of first-cycle loss, Altech's research has demonstrated that the cost-to-reward ratio for graphite is relatively minimal. Consequently, Altech's Silumina AnodesTM plant is now solely focused on producing 8,000 tpa of alumina-coated metallurgical silicon product. This product will be integrated into the graphite by the customers within their battery plants, rather than at Altech's facility.
See the Silumina AnodeTM Plant Design at:
https://youtu.be/F15UzyoYC8I
Silicon in Anodes is the Future
Tesla, a global leader in the electric vehicle and lithium-ion battery industry, has declared that the required step change to increase lithium-ion battery energy density and reduce costs is to introduce silicon in battery anodes, as silicon has ~ ten times the energy retention capacity compared to graphite. Metallurgical silicon has been identified as the most promising anode material for the next generation of lithium-ion batteries.
However, until now, silicon was unable to be used in commercial lithium-ion batteries due to two critical drawbacks. Firstly, silicon particles expand by up to 300% in volume during battery charge, causing particle swelling, fracturing and ultimately battery failure. The second challenge is that silicon deactivates a high percentage of the lithium ions in a battery (first cycle loss). Lithium ions are rendered inactive by the silicon, immediately reducing battery performance and life. The battery industry has been in a race to crack the silicon barrier. One of the main barriers limiting future Li-ion battery improvements in the areas of vehicle range, battery weight, charging speed, and cost, is the inherent energy capacity and performance of graphite as the anode material. Graphite anode material has a theoretical capacity of 372 mAh/g, and a volumetric capacity of approximately 700 mAh/cc, and takes up more space than any other component inthe battery cell. As a result, many believe The next breakthrough in Li-ion battery technology will relate to anode performance, specifically, the replacement of graphite with ultra-high-capacity silicon metal.
Metallurgical silicon anodes have a theoretical capacity of 3,579 mAh/g, and a volumetric capacity of approximately 2,100 mAh/cc, meaning the mass and volume of anode material required to construct an equivalent kWh battery pack is significantly reduced. This equates to important reductions in the $/kWh costs of the Li-ion battery, reduced battery weight, or extended vehicle range capability. Another major benefit is that thinner silicon anodes will enable much faster charging; thinner electrodes enable lithium ions to reach anode particles much faster. This decrease in the ion diffusion time results in significant improvements in charge speed.
Despite the significant performance improvements offered by high-capacity silicon anodes, Li-ion battery manufacturers are yet to adopt their use in large volumes due to a number of critical technical challenges.
Silicon anodes undergo volumetric expansion of 300% when reacting with lithium ions during charging, and a corresponding 300% contraction during battery discharge. In contrast, graphite expansion/contraction is in the order of 7%. Such changes in the anode volume result in fracture and pulverisation of the large silicon particles typically used, and damage to the passivating nature of the SEI layer, increasing lithium-ion loss and resulting in a rapid loss of battery capacity. Most of the development in silicon anodes to date has focussed on high cost nano-sized particles which do not build up sufficient mechanical stress to fracture, and also the blending of relatively small amounts of silicon into existing graphite anode products to achieve relatively modest capacity increases.
*To view the study with tables and figures, please visit:
https://abnnewswire.net/lnk/30F31D56
About Altech Batteries Ltd
Altech 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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