Altech Chemicals (ASX: ATC) was up 2% at noon after battery metals tech company announced the implementation of a final construction contract for the Silumina Anodes pilot plant with Küttner GmbH & Co. KG (Küttner) in Saxony, Germany.
Küttner has completed the final plant engineering design and cost estimation.
Management notes with the Basic Engineering phase having locked in key equipment capacities and validating operational criteria, Küttner will now proceed with procurement process.
To the uninitiated, Küttner is an industrial plant engineering and EPC contractor with a track-record in metallurgical plant, water and off-gas treatment projects in Germany.
Management believes Küttner brings valuable local knowledge to the execution of the Silumina Anodes pilot plant project.
The pilot plant – which will commence late in 2022 - is designed to produce 120kg per day of Silumina Anodes coated battery anode material, which will be made available to selected European battery manufacturers and auto-makers.
The pilot plant will be established in Dock3 (leased warehouse space), next door to Altech’s land in Schwarze Pumpe Industrial Park, Saxony.
With a cash position at the end of March 2022 of $11.571m, Altech is well funded for the pilot plant completion, which is estimated to cost $7.177m.
It’s understood $5.382m will be funded by Altech (75% owner) and $1.794m will be funded by Altech Advanced Materials AG (25% owner).
Today’s announcement follows news early June that Altech has further patent fillings to protect its intellectual property for its Silumina Anodes battery materials technology and alumina coating process.
Earlier this year, the company filed an international patent application that preserves the right to file national applications in up to 156 countries.
Altech’s share price is up 2.04% over the last year, and year-to-date has more than halved from $0.12 early January.
The top 20 Shareholders of Altech hold 51.32% of shares on issue.
Consensus does not cover this stock.
Based on Morningstar’s value of $0.11 the stock is undervalued.
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