Researchanalyst
17.04.2023, Author: Stefan Feulner

Stock news: Altech Advanced Materials- New opportunities after the fireworks — With two innovations in the billion-dollar market

  • technology
  • energy storage
  • battery
  • electromobility

After a brilliant first quarter and a share price performance of over 210%, the share of the Heidelberg-based portfolio company Altech Advanced Materials is consolidating at a high level. The current correction offers attractive long-term entry opportunities. The Company is considered an innovation leader in anode composite materials for lithium-ion batteries and environmentally friendly stationary energy storage systems based on solid-state sodium aluminum oxide batteries. In the age of the energy transition, which is still in its infancy, the newcomer thus has double game-changer potential.


Gigantic market potential

The market volume for stationary grid storage is almost unstoppable due to the demand expected in the future. It is expected to grow by around 28% per year in the coming years. The global battery energy storage systems market is expected to explode from USD 4.4 billion in 2022 to USD 15.1 billion in 2027. It is also forecast to grow from 20 GW in 2020 to over 3,000 GW by 2050.

In this context, the revolutionary CERENERGY batteries, which represent an innovation compared to existing technologies, could set a new standard, as the benefits are clearly evident. CERENERGY batteries are non-flammable and therefore fire and explosion-proof, have a life span of more than 15 years and operate in extremely cold and hot climates. The battery technology uses boiled salt and small amounts of nickel. In addition, neither lithium, cobalt, graphite, nor copper are required and thus function independently of critical supply shortages and price increases of raw materials. The manufacturing costs of CERENERGY batteries are also expected to be about 40% lower than those of comparable lithium-ion batteries, according to Fraunhofer.

The CEO of Altech Advanced Materials, Uwe Ahrens, believes the Company is well on its way to establishing itself as an innovation leader in the upcoming era of the energy transition. Source: Altech Advanced Materials AG

Clear advantages

To develop the CERENERGY project, Altech Batteries GmbH was founded with the Australian partner Altech Batteries (share: 56.25%) and the Fraunhofer Institute for Ceramic Technologies and Systems IKTS (share: 25%), the leading battery institute in Germany. The joint venture, in which the Heidelberg-based company holds an 18.75% stake, is focused on industrially producing and commercially marketing a sodium-aluminum oxide solid-state battery. The revolutionary batteries are to be produced at Altech's Schwarze Pumpe site in Saxony, Germany. The plant is expected to have an initial annual production capacity of 100-MWh, corresponding to an initial standardized production line that can then be quickly scaled up. According to the Company, detailed planning for this line and further scaling is currently being implemented. It is expected to be completed with the detailed economic feasibility study before the end of the third quarter of the current fiscal year.

Stationary energy storage systems for regenerative energy sources such as wind, solar and hydro have been identified as the target market for CERENERGY batteries. In addition, the technology could be used as a temporary storage solution for the generation of green hydrogen and CO2 reduction in steel production and cement manufacture.

Silicon as a lever

Silumina Anodes, the second innovation, which is also being driven forward with technology partner Altech Batteries Ltd. and in which Altech Advanced Materials owns 25%, has no less potential. Here, batteries are provided with a special nano-coating of high-purity aluminum oxide and an enrichment of silicon, which is intended to prevent the deposition of lithium particles on the electrodes. A loss of capacity, as seen in lithium-ion batteries, is hugely reduced with the coating method. In addition, laboratory tests have shown performance increases of over 30% in lithium-ion batteries using the Silumina Anodes technology.

The graph shows the expected performance increase of lithium-ion batteries with a higher proportion of silicon. Source: Altech Advanced Materials AG

In addition to the significantly increased energy capacity, improved energy density, chargeability and lifetime with increased safety were also achieved. The significantly increased energy density lowers storage costs and thus reduces battery cost per charge capacity. Silicon can store ten times more energy than the commonly used graphite, making it one of the most promising anode materials for future development and application in electromobility and lithium-ion batteries.

The result of the pre-feasibility study for the planned ceramic coating plant for anode composite material in Schwarze Pumpe, south of Cottbus, showed clear potential. The project's pre-tax net present value (NPV) was around EUR 420 million. Assuming full capacity utilization of 10,000t p.a. at the production facility still to be built, this would result in an EBITDA of EUR 52.00 million.

After a sharp rise to EUR 11.60, the Altech share consolidated at a high level. Quelle: Refinitiv Eikon, as of 04-14-2023

Interim conclusion

Altech Advanced Materials could be the new innovation driver,"Made in Germany". Both the novel Silumina Anodes coating technology and the CERENERGY battery storage technology, which is being developed together with the Fraunhofer Institute for Ceramic Technologies and Systems, have enormous potential. Altech Advanced Materials currently has a stock market value of EUR 62.86 million. Due to the price fireworks of the past weeks, the share is in consolidation. However, should the start of the pilot plant go ahead as planned, this should boost the share again. As an interested market participant, however, the value should be limited when buying due to its market narrowness.

The update is based on the initial report 02/2022


Conflict of interest

Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

For this reason, there is a concrete conflict of interest.

The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

Risk notice

Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on researchanalyst.com. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.