Altech Batteries Surges 44% as €46m German Grant De-Risks CERENERGY Battery Project

Key Highlights

• Altech shares jump 44% after securing conditional approval for a €46.11 million German government grant
• Funding covers around 30% of eligible capital costs for the CERENERGY battery plant
• Grant significantly de-risks financing for a planned 120 MWh sodium battery facility in Germany
• Management targets full financial close by June 2026
  
   

A Breakout Session for Altech Batteries

Altech Batteries (ASX: ATC) delivered one of the strongest performances on the ASX on Tuesday after announcing a major funding milestone for its flagship CERENERGY sodium-chloride solid-state battery project in Germany.

Shares in the battery technology developer surged 44% to $0.036, with trading volumes swelling to more than 41.8 million shares as investors reacted to confirmation that the project has secured conditional binding approval for up to €46.11 million in German government funding.

At current levels, Altech carries a market capitalisation of around $96 million, a sharp rebound on the day despite the stock still sitting lower on a one-year view. The scale of the move reflects the market’s view that the announcement materially changes the project’s risk profile.

Source: Altech Batteries Ltd ASX announcement, 6 January 2026 

What the Funding Approval Means

The grant approval falls under Germany’s federal STARK economic development program, which is supported by the German Federal Ministry for Economic Affairs and Energy in cooperation with the European Union.

In practical terms, the funding:

• Covers approximately 30% of eligible project capital expenditure
• Provides up to €46.11 million toward construction costs
• Applies to Altech’s planned 120 MWh CERENERGY battery manufacturing facility in Saxony, Germany
  
   

The approval is conditional, with funding subject to:

• Full project financial close by 30 June 2026
• Parliamentary approval under Germany’s 2026 Federal Budget
  
   

Even with these conditions, the funding commitment represents a decisive step forward.

The company confirmed the approval marks completion of the second and final stage of the grant assessment process, significantly reducing financing uncertainty as the project moves toward construction.

Why the Market Cares About CERENERGY

To understand the reaction, it helps to understand what makes CERENERGY different.

Unlike conventional lithium-ion batteries, Altech’s CERENERGY technology uses sodium chloride, essentially table salt, as a core input. The battery chemistry is:

• Lithium-free
• Cobalt-free
• Graphite-free
• Copper-free
  
   

This eliminates exposure to volatile critical mineral supply chains while addressing safety concerns that continue to surround lithium-ion systems.

CERENERGY batteries are designed specifically for stationary energy storage, such as grid-scale storage and industrial applications. According to the company, the batteries are:

• Fire and explosion-proof
• Designed to operate in extreme cold and high-temperature environments
• Engineered for a lifespan of more than 15 years
  
   

The project is being developed in collaboration with Fraunhofer IKTS, one of Europe’s leading battery research institutes.

Management Commentary: Why This Matters Now

Source: ATC ASX Announcement

Source: ATC ASX Announcement

Germany’s Strategic Backing

The German government’s involvement is not incidental.

The STARK program is designed to support regions undergoing structural change, particularly those transitioning away from coal-based industries. Battery manufacturing, grid storage, and energy resilience are central to Germany’s broader energy transition strategy.

By supporting CERENERGY, Germany is effectively backing:

• Domestic battery manufacturing capability
• Non-lithium alternatives aligned with supply security goals
• Long-duration storage solutions for renewable energy grids
  
   

For Altech, this alignment with national and EU-level priorities strengthens the project’s strategic credibility.

What Still Needs to Happen

Despite the strong market reaction, several milestones remain.

The funding commitment is conditional, meaning Altech must:

• Finalise full project financing by June 2026
• Secure final budget approval through Germany’s federal parliament
  
   

As is typical for projects of this scale, these steps involve coordination with lenders, equity partners, and government bodies.

The company has not disclosed final project economics in this announcement, but confirmation that nearly one-third of capital costs are covered by grant funding significantly improves the project’s financial profile.

Beyond CERENERGY: A Broader Technology Platform

While CERENERGY grabbed the headlines, Altech is also advancing its Silumina Anodes battery materials project, which targets the electric vehicle market.

Through its German subsidiary, Altech has completed a definitive feasibility study for an 8,000 tonne per annum silicon-alumina anode coating plant in Saxony. The technology aims to increase lithium-ion battery energy density by around 30%, while improving battery life.

A pilot plant is already under construction, and the company has executed non-disclosure agreements with European and North American automakers and battery supply chain groups.

Together, the two projects position Altech across both stationary storage and EV battery materials, offering diversification within the energy storage value chain.

How Investors Are Reading the News

Tuesday’s sharp share price move suggests investors are reassessing Altech’s risk-reward profile.

While the company remains pre-revenue and loss-making, the German funding approval:

• Reduces funding uncertainty
• Validates the technology at a government level
• Improves visibility toward construction
  
   

The stock’s 44% rally reflects this repricing, though longer-term performance will depend on execution milestones over the next six to twelve months.

Across Europe, demand for long-duration energy storage continues to grow as renewable generation expands and grid stability becomes a priority.

By focusing on non-lithium, safe, and scalable battery technology, Altech is positioning itself within a niche that governments and utilities are increasingly willing to support.