Altech Batteries sharpens CERENERGY focus after securing grant extension in June quarter

Altech Batteries Ltd (ASX:ATC, OTC:ALTHF, FRA:A3Y) used the June 2026 quarter to concentrate its resources on commercialising the CERENERGY® sodium-chloride solid-state battery project, securing an extension to a conditional €46.7 million German Government grant while discontinuing its Silumina Anodes™ development program.

The German Federal Ministry for Economic Affairs and Energy extended the deadline for Altech to achieve full financial close for CERENERGY from June 30 to September 30, 2026.

The funding approval, provided through Germany’s federal STARK economic development program, could cover around 30% of eligible capital expenditure for the planned battery project in Saxony.

Altech said it remained focused on completing the project’s financing and was continuing advanced discussions with potential joint venture partners.

CERENERGY grant deadline extended

The €46.7 million grant remains conditional on Altech achieving full project financial close and securing parliamentary approval for the funding under Germany’s 2026 Federal Budget.

CERENERGY is being developed in collaboration with Germany’s Fraunhofer Society as a long-duration stationary energy storage alternative to conventional lithium-ion batteries.

The sodium-chloride solid-state technology is designed to offer a safer and more sustainable storage solution without relying on lithium, cobalt, graphite or copper.

Altech is targeting the European stationary energy storage market, where greater renewable energy penetration is increasing demand for durable battery systems capable of storing electricity over extended periods.

The company said the grant extension reflected the strategic importance of the technology and provided additional time to complete the required financing arrangements.

Silumina Anodes project discontinued

As part of its sharper strategic focus, Altech decided to discontinue the Silumina Anodes battery materials project after around six years of development.

The board concluded that ongoing partner discussions had not delivered the strategic funding support required to justify further expenditure.

Non-disclosure agreements with battery and automotive companies had also failed to generate sales or sufficiently positive commercial feedback, while the project’s pilot plant had not operated at nameplate capacity.

Altech Industries Germany GmbH, which holds the Silumina Anodes assets, was placed into liquidation on June 30, 2026.

Its assets, including German land, pilot plant equipment and research and development facilities, will be monetised, with net proceeds returned to Altech Batteries as the sole shareholder.

The German land is expected to be sold back to the local government for gross proceeds of about €389,000.

Altech said the closure would reduce operating costs and allow all available funds to be directed toward CERENERGY.

Meckering sale adds working capital

Altech also completed the sale of non-core land at Meckering in Western Australia for gross proceeds of $950,000.

The company retained its 100% interest in Mining Lease M70/1334 and entered an agreement with the new landowner covering exploration, mining access, compensation and an option to purchase.

The arrangement preserves Altech’s ability — or that of any future owner of the mining lease — to develop a mining operation on the property.

As part of the transaction, major shareholder Deutsche Balaton AG discharged its mortgage over the land and received security over $500,000 held in an Altech bank account.

The security relates to €2 million of bearer bonds owed to Deutsche Balaton, which mature on October 31, 2026.

Altech is seeking to sell land in Johor, Malaysia, to repay the bonds. Should repayment not occur by the due date, Deutsche Balaton may claim the $500,000 as partial repayment.

Cash position and funding strategy

Altech ended the quarter with $548,000 in unrestricted cash, down from $1.38 million at the beginning of the period, as operating activities used $1.27 million.

A further $500,000 was held as restricted cash in escrow as security for the Deutsche Balaton bearer bonds.

The company reported estimated available funding equivalent to 0.43 quarters of expenditure at its current operating cash flow rate.

Altech said it expected to source additional capital to continue operations, with the board focused on securing strategic partners capable of contributing funding, technical expertise and market access to advance CERENERGY toward commercial production.

The company is also continuing to liquidate non-core assets as part of its broader funding strategy.