Altech partners to sell salt batteries in key global markets

Altech Batteries has secured immediate access to the sodium nickel chloride battery market in Australia, Europe and the United States through a strategic collaboration and distribution agreement with major Chinese battery producer AMPower, a subsidiary of China's third-largest e-mobility battery maker, Chilwee Group. 

Chilwee has significant scale with a US$20 billion (A$30.3 billion) annual turnover, 23,000 employees and expertise across lead-acid, lithium-ion, sodium-ion and advanced battery technologies.

AMPower was originally a joint venture with General Electric for its Durathon-branded uninterruptible power supply sodium nickel chloride batteries. 

AMPower currently produces conventional sodium nickel chloride solid-state batteries, which share the same chemistry as Altech's proprietary CERENERGY battery. CERENERGY is primarily for industrial, uninterrupted power supply applications. 

The batteries are fireproof, offer a long cycle life and perform reliably in extreme temperatures. They have a singular standout feature: they remain fully charged and ready for instant discharge for more than 10 years without maintenance or frequent replacements, unlike lead-acid, lithium-ion, or nickel-cadmium alternatives. 

They also excel in explosion-proof environments where lithium-ion battery use is restricted. 

In the initial phase of the deal, AMPower will manufacture SNC solid-state batteries to Altech's specifications under Altech’s branding, with Altech overseeing production, certification, marketing and distribution in the target markets. 

The deal provides Altech with a rapid cash flow pathway while building brand presence and credibility ahead of the construction of its flagship 120 Megawatt-hour (MWh) CERENERGY energy storage in Saxony, Germany. Building work remains on track, thanks to a preliminary €46.7 million (A$83.08 million) in funding approved by the German government.

To drive sales, Altech has assembled a team of seasoned marketing experts targeting niche sectors, such as data centres and industrial sites. 

Various uninterrupted power supply models, ranging from modules to cabinets, will launch immediately. They will comply with mandatory European Union and International Electrotechnical Commission standards. 

Altech Group managing director Iggy Tan said: “Altech is experiencing exceptional interest in our sodium nickel chloride solid-state battery technology, especially from customers seeking safer, more reliable alternatives to lithium-ion. These batteries are inherently fireproof, perform reliably in extreme temperatures and offer strong environmental credentials - making them an ideal fit for the needs of the stationary energy storage market.” 

Tan said growing concerns over battery fire risks, particularly in data centres and artificial intelligence facilities, are further accelerating demand. The company’s collaboration with AMPower will enable immediate production, and Altech’s offtake customers are eager to secure supply, he said. 

Under the second phase of the deal, energy storage systems will be expanded using AMPower's 100MWh annual capacity, which is scalable to 200MWh with minimal capital expenditure. 

AMPower will handle cell production, battery management, thermal integration, assembly and warranties, while Altech defines specifications, operational modes, installation – either directly or via partners - and maintenance.

The partners will co-develop small and medium-sized sodium nickel battery energy storage systems for household, industrial and grid-scale use, which each company can distribute under its own brand. 

Battery energy storage systems capture surplus energy from sources such as renewable energy farms or the grid during times of low demand, and can then release that energy to power loads, stabilise the grid, provide backup power during outages and manage energy costs.

Crucially, the deal safeguards intellectual property. Altech's advanced CERENERGY cell technology, developed with German partners Fraunhofer IKTS, remains proprietary, as does AMPower's Durathon battery design. 

This mutual protection ensures focused innovation without overlap. For AMPower, partnering with Altech boosts cell production volumes beyond its current 20-30 kilowatt-hour (kWh) uninterrupted power supply focus, achieving economies of scale and cost reductions through expanded sales.

For Altech, the strategy accelerates commercialisation, generates early revenue to offset costs and reduces funding dependency during the plant ramp-up in Germany.

It will foster real-world experience in storage system assembly and energy management and refine Altech’s CERENERGY packs. 

Early entry will build a customer base, mitigate lithium-ion risks and position Altech as a leader in non-flammable, sustainable storage.

Altech’s CERENERGY tubular architecture boosts capacity 2.6-fold from 38 to 100 ampere hours, enhances thermal management, efficiency and density, reduces the amount of inactive materials to lower costs and simplifies manufacturing for grid-scale reliability. 

Altech produces CERENERGY solid-state batteries – powered by sodium chloride or common table salt- via a joint venture with Germany’s Fraunhofer IKTS. The fireproof CERENERGY packs are free of lithium, cobalt, graphite and copper and can last for at least 15 years in harsh climates. 

Separately, its 75 per cent-owned subsidiary Altech Industries Germany is advancing an 8000-tonne per annum silumina anodes plant for silicon-enhanced lithium-ion electric vehicle batteries. Pilot construction is underway and Altech has signed non-disclosure agreements with carmakers.

Altech's tie-up with AMPower marks a pivotal step towards bridging the gap between innovative research and development and market reality, potentially reshaping energy storage with safer, more durable salt battery solutions. 

As global demand surges for an array of safe, high-capacity electrical storage systems, new sales traction and CERENERGY milestones should propel this Australian innovator forward.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au