Altech Batteries (ASX:ATC) has signed its third offtake Heads of Agreement for its CERENERGY GridPack battery technology, this time with German-based renewable energy provider Axsol GmbH.
The agreement will see Axsol, a certified NATO supplier, exclusively distribute Altech's CERENERGY batteries to western defence industries. The deal includes an initial offtake for 10MWh in 2027, increasing to 30MWh annually from 2029 to 2031. There is also an option to expand to 120MWh annually, subject to availability.
Altech’s CERENERGY battery technology uses a sodium chloride solid-state system as an alternative to lithium-ion batteries. The batteries are non-flammable, fire-resistant, and designed to operate in extreme environments, making them suitable for defence and government use.
Altech and Axsol will also collaborate on a multisystem battery management system to integrate various battery technologies and energy sources. This aligns with the growing trend of using hybrid energy storage systems for increased flexibility and resilience.
Altech plans to begin production of its CERENERGY batteries at its facility in Saxony, Germany, with deliveries to Axsol expected to commence in early 2027.
Shares in Altech are trading 2.33% higher at 4.4 cents.
