How Altech’s AMPower Deal Fast-Tracks Its Battery Market Breakthrough

Strategic Market Entry with AMPower

Altech Batteries Limited has taken a decisive step towards commercialising its sodium nickel chloride (SNC) battery technology by entering a strategic collaboration with AMPower, a subsidiary of China's Chilwee Group. This partnership allows Altech to immediately sell AMPower-manufactured SNC batteries under the Altech brand across Europe, Australia, and the United States. Initially targeting the Uninterrupted Power Supply (UPS) market, the collaboration also plans to expand into small and medium-sized energy storage systems (BESS), leveraging AMPower's existing production capacity and Altech's technical specifications and branding.

This approach provides Altech with a faster route to revenue generation and market presence, complementing rather than competing with its own CERENERGY 120 MWh grid-scale battery project in Germany. The collaboration safeguards Altech's proprietary CERENERGY cell technology, ensuring intellectual property protection while benefiting from AMPower's manufacturing expertise.

Ownership Consolidation and Project Funding

In a significant corporate development, Altech has acquired an additional 18.75% stake in the CERENERGY project and 25% in the Silumina Anodes project, now holding 75% and 100% ownership respectively. This consolidation streamlines decision-making and enhances Altech's ability to attract strategic partners and financiers. Fraunhofer IKTS remains a 25% joint venture partner in CERENERGY.

Financially, the CERENERGY battery project has received preliminary approval for a €46.7 million grant from the German Federal Government under the STARK program, supporting the transition from coal-dependent regions to sustainable energy. While this grant is conditional on parliamentary budget approval, it marks a strong endorsement of Altech's technology and project viability.

Altech is progressing well with debt financing, having selected a preferred European bank for project funding, with technical due diligence underway. Concurrently, equity funding discussions are advancing, targeting strategic investors to take up to 49% equity in the project. Offtake agreements covering 100% of the project's initial five years of production have been secured with key industrial and renewable energy partners, underpinning the project's commercial foundation.

Technology Validation and R&D Milestones

Altech's CERENERGY battery prototypes have demonstrated exceptional performance metrics, including over 650 charge-discharge cycles without capacity loss, near 100% Coulombic efficiency, and energy efficiency up to 92%. The batteries have proven safe under extreme conditions, including thermal cycling up to 300°C, with no signs of gassing or rupture, highlighting their suitability for large-scale grid and renewable energy storage applications.

Further research and development have yielded a next-generation battery pack design increasing capacity from 60 kWh to 90 kWh per pack without altering existing manufacturing infrastructure. This innovation promises a 30% cost reduction at module and pack levels, improved thermal management, and enhanced scalability towards industrial production.

Financial Position and Capital Raising

To support ongoing operations and project development, Altech has drawn down €2 million from a bearer bond facility secured against its Australian land assets and shares in its Malaysian subsidiary. Additionally, the company completed a $6 million capital raising in October 2025, issuing shares and attaching options to strengthen its balance sheet. These funds will facilitate further trials and sales of UPS batteries, advance the CERENERGY project, and assess plans for a potential 4 GWh gigafactory for large-scale production.

Despite current cash outflows related to development and administrative costs, Altech's strategic partnerships, funding progress, and technology milestones position it well to transition from development to commercialisation in the rapidly evolving energy storage market.