Altech Chemicals (ASX:ATC) has executed a joint venture (JV) shareholders agreement with German battery institute Fraunhofer IKTS to commercialise its CERENERGY Sodium Alumina Solid State Battery (SAS).
The JV plans to commercialise the battery as a grid storage alternative to lithium-ion batteries, with Altech being the majority owner at 75% of the JV vehicle.
The battery technology uses table salt and nickel, and it is lithium free, cobalt free, graphite free and copper free, eliminating exposure to critical metal price rises and supply chain concerns.
Altech plans to commercialise a 100MWh plant (Train 1) to be constructed on Altech’s land in Schwarze Pumpe, Germany, and they believe that SAS CERENERGY batteries are explosion-proof, have a lifespan of over 15 years, and operate in extreme cold and desert climates.
The proposed plant will produce 10,000 SAS battery modules per year rated at 10Kwh each.
It is expected these modules will sell for EUR$7,000 to $9,000 per module.
IKTS has estimated its SAS batteries will be 40% to 50% cheaper to produce compared to lithium-ion batteries.
It has spent EUR$35 million on research and development and operates a EUR$25 million pilot plant in Hermsdorf, Germany.
The JV partners have started the planning process for the Bankable Feasibility Study (BFS) required for the commercialisation process, and once the Train 1 plant is built and operating, the longer-term vision for the JV is to be constructed with additional trains or a Gigawatt battery facility.
The JV partners have started the planning process for the Bankable Feasibility Study required for the commercialisation process
Altech reports that the target market for this project will specifically focus on the grid energy storage market which is expected to grow by 28% compound annual growth rate (CAGR) in the coming decades.
The global energy grid storage market is expected to grow from US$4.4 billion in 2022 to US$15.1 billion by 2027. It is also believed to grow from 20GW in 2020 to over 3,000GW by 2050.
The SAS technology has been developed by Fraunhofer IKTS over the last 8 years and has ‘revolutionised’ previous technology, allowing higher energy capacity and lower production costs.
Altech reports the SAS-type batteries have already been tested in stationary battery modules and are currently in the final phase of product testing.
The final battery modules at 10KWh each, are specially designed for the grid storage market and have been undergoing extensive performance testing in Germany, and they are designed to fit in racks housed in sea containers that can be deployed for grid storage.
Altech reports that the SAS battery overcomes the challenges faced by lithium-ion batteries such as fire and explosion risks, short lifespans, small range of operating temperatures, and the use of metals affected by price rises, supply chain issues and geo-political risks.
It is pitching SAS batteries as an alternative to lithium-ion batteries in the stationary storage market.
Fraunhofer Institute for Ceramic Technologies and Systems IKTS is one of the 76 institutes which conducts applied research on high-performance ceramics.
Its three sites in Dresden and Hermsdorf, Germany collectively represent Europe’s largest R&D institute dedicated to the study of ceramics.
It has 800 employees and a budget of EUR$83 million, and it develops ‘advanced high-performance’ ceramic materials, industrial manufacturing processes as well as prototype components and systems in complete production lines up to the pilot plant scale.
Altech is a specialty battery materials technology company that has licensed its proprietary high purity alumina coating technology to 75% owned subsidiary Altech Industries Germany.
It recently announced its ‘game changing’ technology of incorporating high-capacity silicon in lithium-ion batteries and through in-house R&D, it has cracked the “silicon code” and successfully achieved a 30% higher energy battery with improved battery life.
Higher density batteries result in smaller, lighter batteries and substantially less greenhouse gases, and is the future for the EV market.
Images: Altech Chemicals Ltd
