The ASX small cap battery tech company announced it has formed a joint venture (JV) with Germany battery institute Fraunhofer IKTS (IKTS).

The JV will commercialise IKTS' Cerenergy Sodium Alumina Solid State (SAS) battery. The technology uses table salt instead of lithium.

How the Altech share price compares to ASX lithium shares

The news sent the Altech share price surging 31.3% to 11 cents in afternoon trade. In contrast, the All Ordinaries (ASX: XAO) tumbled 2.35% as inflation fears trigger a sell-off in global share markets.

Even popular ASX lithium shares could not withstand the negative sentiment. The Allkem Ltd (ASX: AKE) share price has lost 2.1% to $15.66, IGO Ltd (ASX: IGO) has fallen 1.84% to $14.68 and Pilbara Minerals Ltd (ASX: PLS) dropped 2.2% to $4.64 at the time of writing.

Large market opportunity

But the Altech share price is powering ahead as the company tabled the JV agreement. The ASX minnow will own 75% of the entity, which will commercialise a 100MWh project on Altech's land in Germany.

The company thinks the SAS battery is perfect for grid storage as it is fire- and explosion-proof. The battery can also operate in extreme cold and desert conditions and has a lifespan of more than 15 years.

Altech claims that the global grid energy storage market is expected to grow to US$15.1 billion by 2027, from US$4.4 billion in 2022.

New battery technology powers the Altech share price

As the battery only uses sodium and nickel, the surging price of lithium won't impact on costs of the battery. It also doesn't use cobalt, graphite or copper.

IKTS spent eight years and 35 million euros on the SAS technology, which is undergoing final testing.  

The JV entity, Altech Batteries GmbH (ABG), will own the exclusive global rights to the SAS technology and the Cerenergy trademark. IKTS will not receive a royalty but will be awarded 25% ownership of the JV as a "free carry".

Details of the JV

IKTS will also give Altech access to its pilot plant and expertise associated with the technology. The German partner has the right, but not the obligation, to maintain its 25% interest if the JV expands the project.

IKTS also has the right to convert its 25% interest in the expanded project to a 1.5% royalty of all future battery module sales.

Altech said in its ASX statement:

IKTS has been looking for an entrepreneurial partner that has German land available, has access to funding, is a builder of projects, has battery background, and has technology in alumina used in ceramics. Altech fitted the criteria.

The Altech share price snapshot

The Altech share price was trading flat over the past year before today's surge. In contrast, the All Ordinaries dropped 8.5% over the period.

ASX tech shares have also not been performing well since interest rates and bond yields came off their historic lows.

Higher rates hit ASX growth shares harder and tech is seen as the quintessential growth sector.

Luckily for Altech, its link to batteries is shielding it from the sell-off as the world moves towards a decarbonised future.

The post Altech share price explodes 31% on battery news appeared first on The Motley Fool Australia.

On Monday, Altech announced its 75%-owned German Battery Materials Coating Plant project was deemed 'green' by Norway's independent Centre of International Climate and Environmental Research (CICERO).

Additionally, the company successfully completed a share purchase plan last week and released the results on Monday.

At the time of writing, the Altech Chemicals share price is 10.75 cents. That's 7.5% higher than its previous close and 2.3% higher than it was at the end of last week.

For context, the broader market is in the red today. The All Ordinaries Index (ASX: XAO) is currently down 0.1% while the S&P/ASX 200 Index (ASX: XJO) has slipped 0.18%.

Let's take a closer look at all that's been going on with the alumina developer.

What might be driving the Altech Chemicals share price this week?

Battery materials plant dubbed 'green'

The Altech Chemicals share price is in the green this week amid news its battery material project's sustainability has been endorsed by a prestigious entity.

CICERO found the company's coated silicon anode material could reduce the carbon footprint of lithium-ion batteries by between 19% and 52%.

The company believes this could have a large impact on the burgeoning electric vehicle industry.

Its proposed Battery Materials Coating Plant will be located at the Schwarze Pumpe Industrial Park in Saxony, Germany.

CICERO has slapped the project with a 'medium green' rating. That confirms the project is eligible to receive green bond financing.  

To award the rating, CICERO looked at the project's proposed governance procedures and transparency, labelling them 'good'. It commented:

The plant has near zero scope 1 and 2 emissions as the plant's processes, including steam generation, are fully electrified, and it will use renewable electricity sourced from on-site solar panels and renewable energy certificates.

The body also encouraged Altech Chemicals to implement a supply chain sustainability policy and encourage suppliers to address sustainability impacts.

That's particularly important as more than 90% of the plant's carbon footprint comes from its feedstock materials.

Successful share purchase plan

The Altech Chemicals share price might also be being boosted by the success of the company's recent $2.2 million share purchase plan.

More than 250 shareholders bought new shares for 10.7 cents apiece through the plan.

The company also recently raised $8.1 million through a placement.

The funds will go towards purchasing land at the battery materials coating plant's home industrial park, as well as its construction, preliminary feasibility study, and definitive feasibility study.

The post Own Altech Chemicals (ASX:ATC) shares? Here's why the company is making headlines this week appeared first on The Motley Fool Australia.

During mid-afternoon trade, Altech Chemicals shares are down 14.29% to 12 cents apiece. In comparison, the All Ordinaries (ASX: XAO) is 0.78% lower to 7,498.9 points.

What's dragging Altech Chemicals shares lower?

Investors are scrambling to sell the Altech Chemicals share price as the company prepares to dilute existing shareholder value.

According to its release, Altech Chemicals advised it has successfully completed an $8.1 million share placement.

The offer received strong support from an array of investors, picking up Altech Chemicals shares at 10.7 cents each. This represented a 24% discount to the last closing price of 14 cents apiece on 29 November.

In addition, the company will undertake a share purchase plan (SPP) whereby existing shareholders can apply. The terms and conditions of the offer are the same as the placement.

The shares will be issued in a single tranche under the company's listing rule 7.1. In total, 76 million shares will be created and allotted to investor accounts on 23 December.

Proceeds of the placement will be used to accelerate the construction of a battery materials coating pilot plant in Germany. Altech Chemicals is funding 75% of the costs to build the facility.

Furthermore, the remaining monies will be allocated towards a number of smaller initiatives. This includes purchasing land at the Schwarze Pumpe Industrial Park, completing the preliminary feasibility study, and commencing a definitive feasibility study.

About the Altech Chemicals share price

Since this time last year, Altech Chemicals shares have posted a gain of 200%, reflecting positive investor sentiment. The company's share price reached a multi-year high of 15 cents late last month.

On valuation grounds, Altech Chemicals commands a market capitalisation of around $154.70 million, with 1.29 billion shares on issue.

The post Here's why the Altech Chemicals (ASX:ATC) share price is plunging 14% today appeared first on The Motley Fool Australia.

Altech shares are well ahead of the S&P/ASX 300 Metals and Mining Index (AXMM), which has slipped into the red.

Shares in the alumina producer are on the move despite there being no market sensitive news today. In light of this, let's investigate further.

Why are Altech Chemicals shares soaring today?

In the absence of any specific news, one has to look immediately to the commodity markets for an explanation.

Foolish investors will likely know that we are in the midst of a commodities supercycle reminiscent of the commodities boom of the 2000s, which peaked around 2007.

Consequently, the entire commodities basket is fetching multiyear highs.

Altech is a leading producer of alumina. Alumina is a key ingredient that is smelted in the primary production process to form aluminium.

As such, the company has exposure to the price of aluminium and the price it commands in the spot and futures markets.

Given this situation, the company is considered a price taker. That means it must work with what prices are on offer in the commodities markets, instead of bargaining or looking for alternative places to sell into.

Aluminium has been on a stairway headed straight north over the last 12 months. It has increased 46% from US$1,998/tonne to now trade at US$2,915 per tonne.

Strong demand and supply shortages, in addition to a military coup in Guinea, a major exporter of alumina's key ingredient bauxite, have sent prices soaring this year.

In the short term, aluminium has made another move from 30 September, jumping US$65/tonne.

It appears the relationship has carried through to the Altech Chemicals share price, as it has popped over 31% from 6.2 cents on 1 October.

As a result of the recent moves, Altech Chemicals shares are now trading above their previous 52-week high.

Altech Chemicals share price snapshot

The Altech Chemicals share price has climbed 105% this year to date, well ahead of the S&P/ASX 200 Index (ASX: XJO) return of just 7.7%.

Altech shares have gained 64% in the past year. And they have rallied 17.14% just this past month.

The post Why is the Altech Chemicals (ASX:ATC) share price soaring 22% today? appeared first on The Motley Fool Australia.

We take a look at the tech share's twin announcements to the ASX below.

Battery performance

First, Altech reports that it has completed its phase 1 testing of battery performance of "graphite particles coated with high purity alumina (HPA)". The coating was done with Altech's proprietary technology. The trial included 100 cycle battery tests.

The company said that the performance met its expectations, and it plans additional tests to demonstrate repeatability. The graphite particle coating has the potential to increase the capacity, chargeability and life of lithium-ion batteries.

Commenting on the initial results, Altech general manager operations Jingyuan Liu said:

We now have to optimise the testing conditions and conduct additional tests to demonstrate repeatability and consistency. The performance of the alumina coated graphite is meeting our expectations so far.

Silica alumina coating breakthrough

In Altech's second announcement, the company reported a breakthrough in its silicon alumina coating development.

The company said it had successfully applied its "alumina nanolayer coating technology to the coating of silicon particles, typical of those used in anode applications within lithium-ion batteries".

Altech noted silicon has 10 times more energy capacity than graphite and pointed to Tesla Inc's (NASDAQ: TSLA) recently announced intent to increase the amount of silicon in its batteries to improve battery life and energy density.

Addressing the breakthrough, Jingyuan Liu said:

We are very encouraged by the excellent coating results achieved from the application of our technology, it has the potential to significantly increase the use of silicon in lithium-ion battery anode and consequently the potential to increase battery energy density, overall performance and longevity.

The next step is to further optimise the coating process.

Altech share price snapshot

Over the past full year, the Altech share price is up 3%. That compares to a 38% gain on the All Ordinaries Index (ASX: XAO).

Year-to-date Altech shares have gained 55%.

The post Here's why the Altech (ASX:ATC) share price is rocketing 11% appeared first on The Motley Fool Australia.