- Altech Batteries (ASX:ATC) provides an update on the DFS for its Silumina Anodes plant in Saxony, Germany
- The company has outlined which grants it currently has access to and debt information
- The company has been awarded green bond certification
- Altech has also provided the total cost of product per kilogram
- Shares last traded at 7.1 cents
Altech Batteries (ASX:ATC) has revealed the cost of its Silumina Anodes product per kilogram from its future plant in Saxony, Germany – coming in at €27.75 (A$45.39/kg).
The Silumina Anode feedstock, Silicon, will be the biggest price driver.
An anode is the part of the battery that allows electricity to ‘flow’ through the asset and Altech is banking on science that shows silicon can greatly improve heavy-duty battery performance.
The company also outlined which grants it has received or has access to in the EU in its update this morning.
Breaking it down
All in all – Altech is the beneficiary of grants from the state government of Saxony for A$12.23 million, two Federal German government grants worth a combined A$106 million, and an in-situ application to the EU for A$81.7 million, according to Altech.
In total, this is nearly A$200 million if the third grant application is successful.
When considering that a lithium-ion battery anode containing 20 per cent silicon could reduce overall emissions associated with a graphite anode battery by 51.8 per cent, that could be a small cost for big momentum.
Capital costs and catalysts
Overall capital costs for the Silumina Anodes project are expected to come in at $180 million, and this morning the company said it “believes the project could be funded by pure equity”.
“Any offtake with a name auto company will make equity funding quite achievable,” the company added.
Key risks facing the plant across its 30-year life are feedstock supply risks; failing to realise total plant capacity, production bottlenecks, performance of a crucial component known as a calciner, and, any changes to silicon purity.
Shares last traded at 7.1 cents.