Altech Batteries (ASX:ATC) secures market entry with sodium nickel chloride battery collaboration

Altech Batteries (ASX:ATC) has taken a decisive step towards commercialisation, announcing a collaboration with AMPower, a subsidiary of Chinese battery group Chilwee, to distribute sodium nickel chloride batteries across Australia, Europe and the United States.

The agreement provides Altech with immediate market entry while its flagship CERENERGY® project in Germany advances through development and funding processes.

Highlights

• Strategic collaboration with AMPower to distribute sodium nickel chloride batteries in Australia, Europe and the US.

• Initial focus on Uninterrupted Power Supply (UPS) batteries, with further cooperation on small and medium-scale energy storage systems.

• AMPower manufactures to Altech’s specifications under Altech branding, ensuring product quality and brand positioning.

• CERENERGY® 120 MWh project in Germany remains on track, with preliminary €46.7 million funding approval from the German Government.

• Early market entry designed to generate cash flow, establish brand presence and support the transition to grid-scale energy storage.

Building scale through collaboration

AMPower, originally established as a joint venture with General Electric to produce sodium nickel chloride batteries under the Durathon brand, currently manufactures Zebra-type batteries for the industrial UPS sector.

With an annual production capacity of 100 megawatt hours and the ability to expand this to 200 megawatt hours with relatively minimal investment, the group is positioned to supply Altech-branded batteries for both existing UPS markets and the broader energy storage sector.

In the first phase of the collaboration, AMPower will produce UPS batteries under Altech’s supervision and specifications, which will then be distributed under the Altech brand into the company’s target markets.

These units are marketed as fireproof, long-life and maintenance-free, with the capability to remain fully charged and ready for use for more than a decade, offering customers a strong alternative to lead-acid or lithium-ion systems that require frequent replacement.

This combination of features makes the batteries particularly suitable for critical data centres, explosion-prone environments and other locations where the use of lithium-ion technology may be restricted.

Strategic implications for CERENERGY®

Altech’s strategy is to use this arrangement as a pathway to early revenue generation and brand recognition, while simultaneously progressing the CERENERGY® 120 megawatt hour energy storage project in Saxony, Germany.

That facility is being developed in partnership with Fraunhofer IKTS and is focused on producing next-generation sodium nickel chloride cells designed for large-scale grid applications.

The new CERENERGY® tubular cell design represents an evolution of the Zebra model and is intended to deliver higher energy density, improved electrochemical efficiency and a reduction in inactive materials, resulting in lower system costs and enhanced reliability.

With capacity increased from 38 amp hours to 100 amp hours, the technology is positioned as a substantial advancement over the earlier Zebra batteries, combining material improvements and a simplified architecture that supports scalability and consistent performance.

Altech Managing Director Iggy Tan described the collaboration as both timely and strategically important, stating: “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.”

By entering the UPS and smaller energy storage markets under its own brand, Altech Batteries is positioning itself to generate early sales, strengthen customer relationships and establish market presence ahead of commissioning its German production facility.

The arrangement allows the company to retain full control of its intellectual property while gaining valuable experience in commercial deployment and systems integration of sodium nickel chloride technology.

For AMPower, the partnership offers a chance to increase cell production volumes and reduce unit costs through greater economies of scale, while for Altech it represents an avenue to accelerate commercial readiness, generate early cash flow and lessen reliance on external funding during the transition to grid-scale operations.

As concerns regarding lithium-ion fire safety and supply chain vulnerabilities intensify, sodium nickel chloride batteries are likely to attract further industry attention.

Altech’s collaboration with AMPower provides a bridge between immediate demand in specialised sectors such as UPS and the longer-term deployment of CERENERGY® technology at industrial scale, aligning the company with a growing emphasis on safer, more sustainable and regionally diversified energy storage solutions.

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