Altech Batteries secured €46.11 million (A$80.4 million) in German government funding for its CERENERGY sodium-chloride solid-state battery project. The conditional binding approval covers approximately 30% of eligible capital costs for a planned 120 MWh manufacturing facility in Saxony.
The funding comes from Germany's federal STARK economic development program, which supports structural change in regions affected by the country's coal phase-out. Altech must achieve full project financial close by June 30, 2026 and secure parliamentary budget approval to access the funds.
Altech's shares surged on the January 6 announcement, with 76 million shares traded at prices up to 3.8 cents - more than 50% higher than the previous day's close. The trading volume represented the company's largest in over a year.
The CERENERGY technology, developed in partnership with Fraunhofer Institute for Ceramic Technologies and Systems, uses sodium-chloride solid-state chemistry instead of lithium-ion. The batteries are fire-proof, operate in extreme climates, and have a lifespan exceeding 15 years.
Germany's STARK program expanded in 2024 to include direct investment grants for transformative technologies like battery production. The initiative aims to transition former coal mining regions toward sustainable economic development while supporting energy storage manufacturing capabilities.
Altech managing director Daniel Raihani called the funding a "major milestone" that materially de-risks the project's capital structure. The company's joint venture with Fraunhofer holds a 25% stake in the technology development.
The sodium-chloride solid-state design eliminates lithium, cobalt, graphite, and copper from battery production. This addresses supply chain concerns and critical metal price volatility while positioning the technology as a strategic alternative for European energy storage markets.
Altech's refreshed executive team now focuses on securing strategic partners who can contribute capital, technical resources, and market access. The company also plans to reassess distribution arrangements for sodium-nickel-chloride UPS batteries produced by AMPower.
The 120 MWh facility would position Altech to construct what could become Europe's first grid-scale solid-state sodium-chloride battery manufacturing plant. Production would target stationary energy storage applications where enhanced safety and sustainability offer competitive advantages over conventional lithium-ion systems.
Germany aims to phase out coal-fired power generation by 2038, creating demand for alternative energy storage solutions. The CERENERGY project aligns with broader European efforts to establish non-lithium battery manufacturing capabilities independent of Asian supply chains.
