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Date : 14/10/2022

Altech Chemicals (ASX: ATC) shares are Rising after the company announced a Joint Venture.

Altech Chemicals (ASX: ATC) uses advanced technology to make innovative battery materials and solid-state sodium-alumina batteries for grid storage.

Altech Chemicals shares is making a 100 MWh solid-state sodium alumina battery production facility available to the market. It is also at the forefront of producing battery materials for the future of lithium-ion batteries by successfully adding silicon to graphite anodes to make batteries with more energy density.

After the announcement of forming a joint venture with the German battery research organisation Fraunhofer IKTS, shares of Altech Chemicals (ASX: ATC) jumped in the third and fourth week of September. The company announced a joint venture aimed to bring Altech’s proprietary Sodium Alumina Solid State (SAS) batteries to market.

ATC: FY22 Results Highlights

ATC stock trades at $0.11 and has gained 75% in the previous month. The market cap of the company is around 149.6 million AUD.

altech chemicals shares asx

  1. The company had no revenue in 2022.
  2. The net loss of the company was around $5.73 million.
  3. The EBITDA of the company was $5.73 million.
  4. The company had $10.91 million in cash and cash equivalents at the end of fiscal 2022.

ATC: The Sodium Alumina Solid State (SAS) battery has a longer life.

In their press release, Altech Chemicals (ASX: ATC) shares are rising highlights the various ways in which SAS batteries outperform lithium-ion batteries, especially when it comes to grid storage.

The solid ceramics used in SAS batteries replace the traditional battery’s liquid electrolyte, making them safe from fire and explosion. Comparatively, lithium-ion batteries’ optimal operating temperature range is between +15 and +35 degrees Celsius. In contrast, SAS batteries may function well in temperatures ranging from -20 to 60 degrees Celsius.

Since ceramics were used instead of liquid electrolytes, the SAS batteries don’t lose sodium with each charge and discharge. This makes the SAS batteries last longer than 15 years, much longer than Lithium-ion batteries.

Instead of lithium, the sodium ions found in table salt are used in SAS batteries, and the cathode is made of sodium chloride and nickel. Altech Chemicals (ASX: ATC) estimates that the production cost of these batteries is 10–50% lower than that of lithium-ion batteries due to eliminating the requirement for cobalt, graphite, and copper.

Despite their larger weight and poorer power density, SAS batteries are preferable for grid power storage. However, they are not suitable for car batteries or other applications.

ATC: Utilising its own kaolin resource to create ultra-pure alumina

Before the announcement of the JV, Altech’s greatest claim to fame was its ability to manufacture HPAs. In addition to creating scratch-resistant glass and high-strength ceramic tools, HPA has numerous other industrial uses.

However, HPA’s advantage in manufacturing separator coating for lithium-ion batteries sparked the market’s interest. Laboratory tests conducted by Altech demonstrated that using HPA-coated silicon and graphite enhanced the energy capacity of lithium-ion batteries by 30% and prolonged their useful life.

ATC: Malaysian manufacturing facility

After completing phases 1 and 2, Altech is building a 4,500tpa HPA processing facility in Johor, Malaysia. The plant’s feedstock will come from the firm’s 100%-owned kaolin resource in Mechering, Washington, which will be transported to Malaysia. At a discount rate of 7.5%, Altech estimates the pre-tax NPV of this project to be US$505m. The company intends to use proceeds from the sale of green bonds and the finding of joint-venture partners to fund its implementation.

The most recent information on the WA kaolin deposit indicates an inferred resource of 125 million tons and a mining life of 250 years for the enterprise. The deposit currently supplies all of the feedstock needed for the HPA facility. However, Altech Chemicals ASX-ATC Forecast & Guidance has indicated that it may consider selling the kaolin project if a sufficiently high offer were to be made. It’s hardly surprising that it’s dropping some of its less critical work to concentrate on its more essential responsibilities.

Conclusion

ATC stock has broken the downward trend after the company announced the joint venture. The upcoming months are expected to positively affect the ATC stock price. Investors should play this wisely to get the maximum benefit of the rising battery maker stock.

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