Altech Batteries (ASX:ATC) has signed a strategic collaboration and distribution agreement with AMPower for early market entry into Australia, Europe, and the US.
In the initial phase of the agreement, AMPower will produce sodium nickel chloride solid state uninterruptible power supply (UPS) batteries for Altech which will be under Altech brand, supervision, and specification for distribution.
The sodium nickel chloride solid state UPS batteries are fireproof, feature a long cycle life, and operate reliably in extreme heat and cold.
During the second phase, AMPower plans to manufacture sodium nickel chloride batteries for the household, industrial, and grid-scale energy storage markets. AMPower has a production capacity of 100 megawatt per hour per year, with the ability to scale up to 200 megawatts per hour per year.
Both companies will cooperate on small and medium size battery energy storage system (BESS) development. Each partner will have authority to distribute the co-developed BESS under its own brand.
Next wave of innovation
Altech, which has a market capitalisation of $83.66 million, says this strategy provides a faster pathway to cashflow for the company.
The company notes it will also strengthen the market presence and branding of Altech while the company advances and secures funding for its CERENERGY 120 megawatt per hour energy storage project in Germany.
Managing Director Iggy Tan says the collaboration enables immediate production, and the company’s offtake customers are eager to secure supply.
“With special focus of UPS as well as small and medium size energy storage this early market entry strategy is augmenting and not competing with the large-scale grid energy storage CERENERGY battery strategy,” Tan says.
“By moving quickly to meet this demand, Altech is positioning itself as a leader in what we see as the next major wave in battery storage innovation.”
A key advantage of these batteries is their capacity to stay fully charged, idle, and instantly ready for discharge for more than 10 years. The batteries do not need regular maintenance or the frequent replacements, which is required by lead-acid, lithium-ion, or nickel-cadmium batteries.
AMPower is a subsidiary of the Chilwee Group – which is the third largest e-mobility battery manufacturer in China with an annual turnover of US$20 billion ($30.36 billion), 23,000 employees, and production capabilities spanning lead-acid, lithium-ion, sodium-ion, and next-generation battery technologies.
AMPower’s Zebra-type batteries use the same chemistry as CERENERGY but are mainly for the small UPS industrial market.
Write to Aaliyah Rogan at Mining.com.au
Images: Altech Batteries
