Third Offtake Heads of Agreement for CERENERGY
Perth, Dec 18, 2024 AEST (ABN Newswire) - Altech Batteries Limited (
ASX:ATC) (A3Y:FRA) (ALTHF:OTCMKTS) is pleased to announce the execution of a third offtake Heads of Agreement (HOA) between Axsol GmbH (Axsol) and Altech Batteries GmbH.
- Strategic Heads of Agreement
- Executed with Axsol GmbH (Axsol)
- Certified supplier to NATO
- Offtake for 10MWh in first year, then rising to 30MWh in subsequent years
- Option to increase to 120MWh per subject to availability
- For the first five (5) years of production
- Exclusive Distribution Agreement for Western Defence Industries
- Cooperation for multisystem battery management system (BMS)
Axsol is a leading, award-winning provider of integrated renewable energy solutions and is based in Germany. Axsol leverages its expertise in diverse battery technologies and systems, alongside specialised equipment, to seamlessly integrate solar, wind, hydrogen energy and fuel cell solutions. These advanced energy systems ensure safe and reliable energy supply across multiple industries.
Altech has entered into an exclusive distribution agreement with Axsol to supply the western defence industry with CERENERGY(R) battery technology. As a certified supplier to NATO and select western allied forces, Axsol's involvement will streamline qualification procedures, enabling early market entry and sales of CERENERGY(R) batteries. These highly robust, durable and non-flammable batteries are ideally suited for defence applications and government agencies.
Additionally, Altech will collaborate with Axsol to leverage its expertise and know-how in efficiently managing and integrating various battery technologies with multiple energy supply sources using its advanced energy management system, "AXOS." Future Battery Energy Storage Systems (BESS) are expected to incorporate multiple battery technologies tailored for different applications. As such, smart integration is essential to ensure their efficient, reliable and cost-effective operation.
Key Terms of the Agreement
- Deliveries are expected to commence in Q1 2027 at the earliest, following the commissioning of Altech's production plant.
- Technical specifications and guarantees will align with the provided data sheet.
- A confidential price per GridPack has been agreed upon.
- Minimum purchase targets are set at:
o 10 MWh in 2027; and
o 20 MWh in 2028; and
o 30 MWh annually from 2029 to 2031.
- Subject to availability, maximum purchase targets are:
o 30 MWh in 2027; and
o 60 MWh in 2028; and
o 120 MWh annually from 2029 to 2031.
- Axsol is the exclusive distribution partner for Altech CERENERGY(R) batteries to western defence industries.
- Altech and Axsol will collaborate on the development of a multisystem battery management system.
Management Comment - CEO Iggy Tan
"We are delighted to have secured such a competent partner in Axsol, enabling Altech to enter the highly attractive defence-related market segment with our CERENERGY(R) GridPack Battery Energy Storage System. Axsol's strong interest in our technology highlights the unique advantages of Altech's CERENERGY(R) Sodium Chloride Solid State Battery technology and the exceptional unique selling points we bring to the market."
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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