Altech Batteries (ASX:ATC) Takes CERENERGY® to Defence with Strategic Axsol Deal
December 18, 2024Australia’s Altech Batteries (ASX:ATC) has scored another milestone, securing its third major offtake Heads of Agreement (HOA) for its CERENERGY® GridPack battery technology.
Partnering with Germany’s Axsol GmbH, a certified supplier to NATO and a leader in renewable energy integration, this move places Altech Batteries firmly on the map for the lucrative western defence market.
Defence-Ready Batteries for a Critical Sector
Axsol’s agreement includes initial offtake for 10MWh of CERENERGY® batteries in the first year, with volumes projected to triple to 30MWh annually in subsequent years.
The deal comes with an option to increase deliveries to a substantial 120MWh annually, subject to capacity.
For a technology largely free from supply chain challenges plaguing traditional lithium-ion batteries, this is no small feat.
Altech’s CERENERGY® Sodium Chloride Solid State Batteries tick the boxes defence sectors care about most: fire and explosion-proof safety, robust durability, and operability in harsh environments—from icy extremes to searing deserts.
As Altech Managing Director Iggy Tan states:
“We are delighted to have secured such a competent partner in Axsol, enabling Altech to enter the highly attractive defence-related market segment with our CERENERGY® GridPack Battery Energy Storage System”
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A Strategic Advantage in a Shifting Landscape
While lithium-ion batteries dominate headlines, Altech’s technology differentiates itself with non-flammability and a supply chain that eschews lithium, cobalt, graphite, and copper—metals increasingly fraught with price volatility and geopolitical tension.
Instead, CERENERGY® relies on abundant table salt, reducing exposure to the critical minerals crunch
The broader context is clear: governments and military bodies globally are ramping up efforts to secure sustainable, cost-effective, and resilient energy solutions.
Axsol, with its established NATO credentials, smooths the path for Altech’s CERENERGY® to gain rapid defence adoption.
Smart Energy Integration on the Horizon
Beyond distribution, Axsol brings to the table its advanced energy management platform, AXOS.
The collaboration aims to integrate CERENERGY® technology into multisystem battery solutions tailored for diverse applications.
As defence and government entities explore hybrid energy systems—including hydrogen and solar—this capability positions Altech for a broader role in energy resilience.
Next Steps: Scaling Up in Saxony
Altech’s upcoming production plant in Saxony, Germany, scheduled for commissioning in 2027, will be the linchpin for these deliveries. The agreement’s minimum purchase targets—rising from 10MWh to 30MWh over the first five years—provide a clear roadmap for revenue growth
For investors and stakeholders alike, Altech’s latest deal underscores the growing confidence in CERENERGY® as a game-changing alternative in the global energy storage market.
As Iggy Tan puts it:
“Axsol’s strong interest in our technology highlights the unique advantages of Altech’s CERENERGY® Sodium Chloride Solid State Battery technology”
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In a world looking for sustainable answers, Altech might just have found its niche—durable, safe, and defence-grade.
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