{"id":5986,"date":"2024-02-18T18:00:24","date_gmt":"2024-02-18T18:00:24","guid":{"rendered":"https:\/\/economicherald.net\/?p=5986"},"modified":"2024-02-18T18:00:24","modified_gmt":"2024-02-18T18:00:24","slug":"east-coast-research-says-altech-is-undervalued-and-thats-just-based-on-one-of-its-two-battery-projects","status":"publish","type":"post","link":"https:\/\/economicherald.net\/?p=5986","title":{"rendered":"East Coast Research says Altech is undervalued \u2013 and that\u2019s just based on one of its two battery projects"},"content":{"rendered":"

East Coast Research values Altech Batteries at 15-21c, substantially higher than its current share price of 8.7c
\nValuation is based solely on Silumina Anodes and does not include the CERENERGY\u00ae battery project
\nDFS for CERENERGY\u00ae is expected in the short to medium term, which will add substantially to company\u2019s value<\/p>\n

\u00a0<\/p>\n

Special Report:<\/em> With two revolutionary battery technology projects progressing towards commercialisation in Germany, East Coast Research believes Altech Batteries is among the pioneers as decarbonisation of the world\u2019s economy continues.<\/strong><\/p>\n

The first of the company\u2019s two technologies is Silumina Anodes<\/strong>, which combines high purity alumina (HPA) coated silicon and graphite to produce a lithium-ion battery anode that promises to increase energy capacity by ~30%.<\/p>\n

While silicon has long being known to increase the energy capacity of lithium-ion batteries, developers had previously struggled to account for silicon particle swelling, which could see silicon particles expand by almost 300% in volume when they react with lithium.<\/p>\n

Altech Batteries\u2019 (ASX:ATC)<\/strong><\/a> alumina coating technology appears to have addressed this and other concerns by coating silicon particles with a nano layer of HPA.<\/p>\n

This resolves the expansion defragmentation, as well as curbing the significant first-cycle loss associated with silicon, paving the way for smaller, lighter batteries that are ideally suited for use by battery electric vehicles.<\/p>\n

Research has indicated that demand for silicon-based anodes could experience compound annual growth rate of ~48% from 2024 to 2036.<\/p>\n

A DFS for a 8,000tpa (120GWh) alumina coated metallurgical silicon plant<\/a> in Saxony, Germany, outlined a project capable of delivering net present value of \u20ac684m and internal rate of return (IRR) of 34%.<\/p>\n

Capex is estimated at \u20ac112m with payback in 2.4 years.<\/p>\n

\u00a0<\/p>\n

Targeting grid storage<\/strong><\/h2>\n

ATC\u2019s other battery initiative is its unique CERENERGY\u00ae solid-state batteries, which are ideally suited for grid energy storage use and require just common table salt (sodium chloride) and nickel, with no need for lithium, cobalt, graphite and copper, thus limiting exposure to critical metal price rises and supply chain concerns.<\/p>\n

These batteries are capable of operating at a very wide temperature range (-40 degrees Celsius to +60 degrees Celsius), are fire and explosion-proof, and have a life span of more than 15 years.<\/p>\n

Over their life, they are estimated to be capable of reducing costs by up to 40% compared to regular lithium-ion batteries and boast an\u00a0emissions footprint<\/strong><\/a>\u00a0at least 50% lower than that of lithium-ion batteries.<\/p>\n

ATC has already developed battery packs with capacities of 5kWh and 10kWh\u00a0and is currently manufacturing prototypes<\/strong><\/a> of its 60kWh CERENERGY\u00ae\u00a0battery pack grid storage use.<\/p>\n

It is also in a joint venture with German government owned Fraunhofer IKTS to commercialise a 120MWh battery plant on ATCs land in Schwarze Pumpe, in the German state of Saxony.<\/p>\n

\u00a0<\/p>\n

Plenty of upside potential<\/strong><\/h2>\n

East Coast Research notes that while ATC\u2019s battery projects are still speculative from an investing point of view, their revolutionary nature puts the company at the forefront of players commercialising innovative battery technologies.<\/p>\n

Based on the strengths of ATC\u2019s Silumina Anodes<\/strong> project, the research firm valued the company at 15c in a base case scenario and 21c using a discounted cash flow approach, well above its current share price of 8.7c.<\/p>\n

This assumed a modest discount rate of 9.3% using a cost of equity of 11.5%, a cost of debt of 12% and a tax rate of 30%.<\/p>\n

East Coast Research noted that the modest discount rate is due to the tax savings of the assumed 70% debt potion of the capital required to build the plant.<\/p>\n

\u201cWe think this is a safe assumption given that the Silumina project has been assessed as a green project and is eligible for green bond financing and various government grants,\u201d it added.<\/p>\n

Adding interest, the estimate does not include any valuation from the CERENERGY\u00ae project, which East Coast Research says offers substantial upside potential to its current valuation range.<\/p>\n

\u201cWe expect Altech to release a DFS for the CERENERGY\u00ae batteries project in the short to medium term, which will potentially add substantial sums to the company\u2019s valuation,\u201d East Coast said.<\/p>\n

\u00a0<\/p>\n\n

\ufeff<\/span>\u00a0<\/p>\n

\u00a0<\/p>\n

This article was developed in collaboration with Altech Batteries, a Stockhead advertiser at the time of publishing. <\/em><\/p>\n

\u00a0<\/em><\/p>\n

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.<\/em><\/p>\n

<\/span><\/p>\n

The post East Coast Research says Altech is undervalued \u2013 and that\u2019s just based on one of its two battery projects<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

East Coast Research values Altech Batteries at 15-21c, substantially higher than its current share price of 8.7c Valuation is based solely on Silumina Anodes and [more…]<\/a><\/p>\n","protected":false},"author":0,"featured_media":5987,"comment_status":"","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-5986","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"\nEast Coast Research says Altech is undervalued \u2013 and that\u2019s just based on one of its two battery projects - Economic Herald<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/economicherald.net\/?p=5986\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"East Coast Research says Altech is undervalued \u2013 and that\u2019s just based on one of its two battery projects - Economic Herald\" \/>\n<meta property=\"og:description\" content=\"East Coast Research values Altech Batteries at 15-21c, substantially higher than its current share price of 8.7c Valuation is based solely on Silumina Anodes and [more...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/economicherald.net\/?p=5986\" \/>\n<meta property=\"og:site_name\" content=\"Economic Herald\" \/>\n<meta property=\"article:published_time\" content=\"2024-02-18T18:00:24+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=5986#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=5986\"},\"author\":{\"name\":\"\",\"@id\":\"\"},\"headline\":\"East Coast Research says Altech is undervalued \u2013 and that\u2019s just based on one of its two battery projects\",\"datePublished\":\"2024-02-18T18:00:24+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=5986\"},\"wordCount\":746,\"publisher\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=5986#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/economicherald.net\\\/wp-content\\\/uploads\\\/2024\\\/02\\\/GettyImages-resized-eFTCTK.jpeg\",\"articleSection\":[\"Finance\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=5986\",\"url\":\"https:\\\/\\\/economicherald.net\\\/?p=5986\",\"name\":\"East Coast Research says Altech is undervalued \u2013 and that\u2019s just based on one of its two battery projects - Economic Herald\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=5986#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=5986#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/economicherald.net\\\/wp-content\\\/uploads\\\/2024\\\/02\\\/GettyImages-resized-eFTCTK.jpeg\",\"datePublished\":\"2024-02-18T18:00:24+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=5986#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/economicherald.net\\\/?p=5986\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=5986#primaryimage\",\"url\":\"https:\\\/\\\/economicherald.net\\\/wp-content\\\/uploads\\\/2024\\\/02\\\/GettyImages-resized-eFTCTK.jpeg\",\"contentUrl\":\"https:\\\/\\\/economicherald.net\\\/wp-content\\\/uploads\\\/2024\\\/02\\\/GettyImages-resized-eFTCTK.jpeg\",\"width\":1200,\"height\":675},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/?p=5986#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/economicherald.net\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"East Coast Research says Altech is undervalued \u2013 and that\u2019s just based on one of its two battery projects\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/#website\",\"url\":\"https:\\\/\\\/economicherald.net\\\/\",\"name\":\"Economic Herald\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/economicherald.net\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/#organization\",\"name\":\"Economic Herald\",\"url\":\"https:\\\/\\\/economicherald.net\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/economicherald.net\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/economicherald.net\\\/wp-content\\\/uploads\\\/2023\\\/10\\\/cropped-cropped-economicheraldlogo-1.png\",\"contentUrl\":\"https:\\\/\\\/economicherald.net\\\/wp-content\\\/uploads\\\/2023\\\/10\\\/cropped-cropped-economicheraldlogo-1.png\",\"width\":850,\"height\":760,\"caption\":\"Economic Herald\"},\"image\":{\"@id\":\"https:\\\/\\\/economicherald.net\\\/#\\\/schema\\\/logo\\\/image\\\/\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"East Coast Research says Altech is undervalued \u2013 and that\u2019s just based on one of its two battery projects - Economic Herald","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/economicherald.net\/?p=5986","og_locale":"en_US","og_type":"article","og_title":"East Coast Research says Altech is undervalued \u2013 and that\u2019s just based on one of its two battery projects - Economic Herald","og_description":"East Coast Research values Altech Batteries at 15-21c, substantially higher than its current share price of 8.7c Valuation is based solely on Silumina Anodes and [more...]","og_url":"https:\/\/economicherald.net\/?p=5986","og_site_name":"Economic Herald","article_published_time":"2024-02-18T18:00:24+00:00","twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/economicherald.net\/?p=5986#article","isPartOf":{"@id":"https:\/\/economicherald.net\/?p=5986"},"author":{"name":"","@id":""},"headline":"East Coast Research says Altech is undervalued \u2013 and that\u2019s just based on one of its two battery projects","datePublished":"2024-02-18T18:00:24+00:00","mainEntityOfPage":{"@id":"https:\/\/economicherald.net\/?p=5986"},"wordCount":746,"publisher":{"@id":"https:\/\/economicherald.net\/#organization"},"image":{"@id":"https:\/\/economicherald.net\/?p=5986#primaryimage"},"thumbnailUrl":"https:\/\/economicherald.net\/wp-content\/uploads\/2024\/02\/GettyImages-resized-eFTCTK.jpeg","articleSection":["Finance"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/economicherald.net\/?p=5986","url":"https:\/\/economicherald.net\/?p=5986","name":"East Coast Research says Altech is undervalued \u2013 and that\u2019s just based on one of its two battery projects - Economic Herald","isPartOf":{"@id":"https:\/\/economicherald.net\/#website"},"primaryImageOfPage":{"@id":"https:\/\/economicherald.net\/?p=5986#primaryimage"},"image":{"@id":"https:\/\/economicherald.net\/?p=5986#primaryimage"},"thumbnailUrl":"https:\/\/economicherald.net\/wp-content\/uploads\/2024\/02\/GettyImages-resized-eFTCTK.jpeg","datePublished":"2024-02-18T18:00:24+00:00","breadcrumb":{"@id":"https:\/\/economicherald.net\/?p=5986#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/economicherald.net\/?p=5986"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/economicherald.net\/?p=5986#primaryimage","url":"https:\/\/economicherald.net\/wp-content\/uploads\/2024\/02\/GettyImages-resized-eFTCTK.jpeg","contentUrl":"https:\/\/economicherald.net\/wp-content\/uploads\/2024\/02\/GettyImages-resized-eFTCTK.jpeg","width":1200,"height":675},{"@type":"BreadcrumbList","@id":"https:\/\/economicherald.net\/?p=5986#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/economicherald.net\/"},{"@type":"ListItem","position":2,"name":"East Coast Research says Altech is undervalued \u2013 and that\u2019s just based on one of its two battery projects"}]},{"@type":"WebSite","@id":"https:\/\/economicherald.net\/#website","url":"https:\/\/economicherald.net\/","name":"Economic Herald","description":"","publisher":{"@id":"https:\/\/economicherald.net\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/economicherald.net\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/economicherald.net\/#organization","name":"Economic Herald","url":"https:\/\/economicherald.net\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/economicherald.net\/#\/schema\/logo\/image\/","url":"https:\/\/economicherald.net\/wp-content\/uploads\/2023\/10\/cropped-cropped-economicheraldlogo-1.png","contentUrl":"https:\/\/economicherald.net\/wp-content\/uploads\/2023\/10\/cropped-cropped-economicheraldlogo-1.png","width":850,"height":760,"caption":"Economic Herald"},"image":{"@id":"https:\/\/economicherald.net\/#\/schema\/logo\/image\/"}}]}},"_links":{"self":[{"href":"https:\/\/economicherald.net\/index.php?rest_route=\/wp\/v2\/posts\/5986","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/economicherald.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/economicherald.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/economicherald.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5986"}],"version-history":[{"count":0,"href":"https:\/\/economicherald.net\/index.php?rest_route=\/wp\/v2\/posts\/5986\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/economicherald.net\/index.php?rest_route=\/wp\/v2\/media\/5987"}],"wp:attachment":[{"href":"https:\/\/economicherald.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/economicherald.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/economicherald.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}