Debt process
As mentioned earlier, Altech has engaged ten commercial banks and two venture debt funds in the first round of financing discussions, so that largely received positive initial feedback. Based on this feedback, the company has selected a desired financial institution- a European bank with a proven track record in providing debt financing for technology-driven projects, in particular within the innovation sector.
Although the mandate has not yet been formally executed, Altech plans to make an official announcement once this step is completed.
In the meantime, the commercial and technical teams of the bank have diligently carried out an extensive overview of the Cerenergy projects and its technology. The Technical Due Diligence process is crucial to ensure that the project meets the bank’s financing and risk drums. As part of this process, the on -site Altech experts are in detailed discussions with the bank’s representative. The banks have visited Dresden and the Fraunhofer test facilities and visit Hermsdorf, Germany, where the prototype production is located in the coming weeks, which will be an important step to close the technical evaluation.
In parallel to these efforts, Altech stems from discussions for securing a federal government guarantee, which would further strengthen its ability to guarantee the necessary debt financing for the project. Officials of the Ministry of Finance have already been informed about the initiative and the Due Diligence process for the application is actively underway. This federal warranty will serve as an underwriter and therefore considerable all debt financing for the project.
Stock -financing
Parallel with continuous efforts for debt financing, the group has engaged different share advisers to help secure the equity of the project financing package. As part of this strategy, Altech intends to divert a minority interest in the project to one or two strategic investors. This partial rejection is intended to attract investors who can not only contribute capital, but also strategic value, in accordance with the long -term goals of the Cerenergy (R) project of growth and sustainability.
The group on the one hand is specifically aimed at large utilities, data center operators, investment funds and companies that are deeply committed to the Green Energy Transition and on the other hand industrial partners with access and know-how and resources relevant to the production, implementation or market access of the Cer energy. These potential partners are seen as ideal because of their strong coordination with the sustainable energy focus of the project and their ability to offer considerable financial support. The progress in sharing discussions is promising, signed with different non-dismantling agreements (NDAs), making it possible to deeper involvement with potential investors. In addition, design periods are distributed to interested parties, with the most important conditions for investments. These documents provide a basis for negotiations and facilitate more detailed discussions about the share interest and partnership structure.
The decision to ward off part of the project is strategically focused on relieving the financial burden of the company and at the same time bringing in experienced partners who can contribute to the success of the project. By securing both stock and debt financing, Altech wants to close the full financing package, so that the timely construction and commissioning of the battery plant of the Cerenergy (R). In the future, the focus will be on promoting these discussions and converting interest into formal obligations that are crucial for the progress of the project.
Subsidy applications
Altech has actively asked for various subsidies offered by the state of Saxony, the federal government of Germany and the European Union. The state of Saxony and Brandenburg, together with the European Union, offer substantial support for renewable energy projects, including subsidies aimed at converting brown coal into renewable energy sources. These subsidies are part of broader efforts to switch regions that depend on fossil fuels in the direction of solutions for sustainable energy. The Altech site, based in these areas, benefits from various financing programs that are designed to support clean energy projects, including EU subsidies for energy transformation and innovation. Altech has requested several of these subsidies to promote its Cerenergy (R) project, which gives essential financial support for technology development, high -tech industry, employment work and upgrades of infrastructure.
Decrease -schemes
Altech has protected three important repayment letters from Intent (LOIS) for 100% of its production of Cer Energy (R).
1. Zweckverband Industriepark Schwarze Pompe (ZISP): An agreement was signed on 13 September 2024 for Zisp to buy 30 MWH energy storage capacity annually, consisting of 1MWH Gridpacks, for the first five years of production. The purchase depends on performance tests and battery specifications that meet the customer’s requirements.
2. Referzkraftwerk Lausitz GmbH (Rorolau): A second LOI was performed with Refolau, a joint venture between Bertrag SE and EnergieVelle GmbH. In the first year, ROLAU will buy 30 MWh van Cerenergy (R) Storage N and will increase to 32 MWh per year for the next four years. In addition, Altech will buy green electricity for its planned production plant.
3. AXSol GmbH: A third LOI was signed with AXSol, a leading provider of renewable energy solutions. AXSol will excluding batteries of Cerenergy (R) distribute to the Western defense industry, which facilitates early market input and sale. These agreements are crucial for financing and promoting the Cerenergy (R) project.
About Altech Batteries Ltd:
Altech Battery’s Limited (ASX: ATC, OTC: ALTHF) (FRA: A3Y) is a special battery technology company that has a joint venture agreement with the world leading German battery institute Fraunhofer Ikts (“Fraunhofer”) to the revolutionary Cerergary (Sodergekalumy Cerergyalumy) (SAS) battery (SAS) battery (SAS) battery to commercialize. Cerenergy (r) batteries are the game-changing alternative to lithium ion batteries. Cerenergy (r) batteries are fire and explosion resistant; Have a lifespan of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium -free; Cobalt -free; Graphite -free; And copper -free, eliminating exposure to critical metal price increases and ensuring supply chain.
The joint venture commercializes its battery from Cerenergy (R), with plans to build a 100mWH production facility at Altech’s Land in Saxony, Germany. The facility is intended to produce battery modules of the Cer energy (R) to offer solutions for schedule storage on the market.
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