Altech Batteries Ltd has inked an agreement with major shareholder Deutsche Balaton AG to draw down up to €2.5 million in cash funding – subject to shareholder approval – in the form of bearer bonds. The company is also selling its land in Johor, Malaysia, to secure repayment of the bonds, which will be provided with interest payable at 7% per year. ATC intends to hold a general meeting in late April to secure shareholder approval for the repayment and land sale. The available funding from the new agreement will go to the ongoing development of the CERENERGY® battery project and the Silumina Anodes™ battery materials project, as well as to support general working capital requirements. The agreement terms are as follows: The company is positioning CERENERGY® batteries as an alternative to lithium-ion batteries, being fire and explosion proof, with a life span of more than 15 years and the ability to operate in extreme environments. Altech’s commercialisation strategy includes a joint venture with German government battery institute Fraunhofer IKTS, and plans to construct a 120 megawatt-hour (MWh) production facility in Germany for its CERENERGY® batteries. Altech and its subsidiaries have also completed a definitive feasibility study for the Silumina Anodes™ battery materials project, involving an 8,000-tonne-per-annum silicon alumina coating plant in Germany to supply its Silumina Anodes product to the burgeoning European electric vehicle market. Using high-capacity silicon in lithium-ion batteries, the company has achieved a 30% higher energy battery with improved cyclability and battery life, resulting in in smaller, lighter batteries with a smaller greenhouse gas footprint. Episode 203 of Noel Ong's Coffee with Samso introduces what could become one of the most compelling Australian Securities Exchange (ASX) small-cap resource stories of 2025 – Cyclone Metals Ltd – a largely overlooked company with a significant asset in magnetite iron ore. This episode focuses on the pedigree of Cyclone’s Iron Bear magnetite project. In the Australian market, iron ore is traditionally associated with haematite grading above 62% iron (Fe). However, the industry is shifting. Magnetite is emerging as a key player – and Cyclone Metals holds a project with the potential to deliver premium-grade iron pellets. “Where can you find a mineral resource business owned by a small-cap junior with a market capitalisation of under A$50 million that has secured funding all the way through to mining and processing?” asks Paul Berend, Executive Director and Chief Executive Officer of Cyclone Metals. “Cyclone began this journey with a market cap of just A$10 million.” Berend notes that the shift from haematite to magnetite is being driven by the depletion of high-grade haematite deposits. Cyclone’s strategy aligns with this trend, bolstered by a strategic partnership with global iron ore major VALE, which is providing funding support through to production – a rare position for a junior company. The steel industry’s move towards low-emission production through Direct Reduction (DR) requires high-purity iron pellets. “Not all magnetite deposits are suitable for Direct Reduction Pellets, which is why the Iron Bear deposit is perfectly aligned to allow this process to be achieved,” says Berend. Cyclone’s recent technical work indicates that iron ore from Iron Bear can be upgraded into pellets exceeding 71% Fe – a distinctive characteristic not commonly found, even among larger producers such as Champion Iron.

03/25/2025

Altech Batteries Ltd (ASX:ATC, OTC:ALTHF) has executed a second offtake letter of intent (LOI) with Referenzkraftwerk Lausitz GmbH (RefLau), under which RefLau will purchase 30 MWh of CERENERGY® energy storage capacity in the first year, then 32 MWh per year thereafter for the next four years of production. As part of the LOI, it was further agreed that Altech will purchase green electricity at competitive prices directly from the partners in the region for the planned production plant. “The interest shown by RefLau in Altech’s technology is a clear signal of growing demand for innovative energy storage solutions, particularly as industries shift toward 100% renewable energy,” Altech CEO Iggy Tan said. “It's encouraging to see potential customers like RefLau recognising the value of our scalable and reliable battery systems. “This second letter of intent marks a significant milestone for Altech Batteries as it represents our second offtake agreement for the CERENERGY® GridPack Battery Energy Storage System and more so means that the first two years of production is spoken for and 50% of the three following years.” RefLau is a joint venture between utility companies Enertrag SE and Energiequelle GmbH. Altech, Enertrag and Energiequelle plan to collaborate by using green electricity for Altech’s battery plant and potentially acquiring Altech’s CERENERGY® storage systems. This would stabilise renewable energy output, ensuring continuous power and enabling hybrid power islands. In 2020, Germany's Bundestag and Bundesrat passed laws to phase out coal, compensating the lignite industry and supporting structural changes. The partners are focusing on developing the Schwarze Pumpe industrial park as a pilot for standardised clean energy projects across Europe and beyond. They aim to negotiate electricity contracts to power Altech’s planned battery plant with green energy from Enertrag and Energiequelle’s facilities. The partnership aims to develop a standard hybrid power island using 80MW of solar and wind energy, incorporating 32 Altech CERENERGY® 1MWh GridPacks, with Enertrag and Energiequelle purchasing the storage units. This then standardised solution is to be applied all over Europe for decentralised energy solutions. These decentralised standalone energy solutions, referred to as an 'Energy Island', are capable to support — and be integrated into — the existing power grid and therefore are considered as the preferred, cost-effective solution. Enertrag & Energiequelle, being leading utility and energy solution providers in Europe, plan to purchase CERENERGY® GridPack batteries from Altech, with deliveries anticipated to begin in Q4 2026. The purchase includes a 30MWh target for 2027 and discounts based on electricity supply agreements, with performance guarantees. Preliminary purchase targets are 30MWh in 2027, 32MWh in 2028, 32MWh in 2029-2031. RefLau, a joint venture involving Enertrag, Energiequelle and research institutions, aims to develop a reference power plant powered solely by renewable energy, including green hydrogen. RefLau seeks to mitigate supply gaps from solar and wind intermittency, enhancing grid stability with sector coupling and battery storage solutions. Enertrag SE is part of the Uckerwerk Energietechnik GmbH group and is a leader in renewable energy, specialising in wind turbines, solar power, and Power-to-Gas systems. Headquartered in Brandenburg, Germany, Enertrag SE operates across Germany, France, Ghana, Namibia, Poland, Spain, South Africa, Uruguay, the UK and Vietnam, integrating battery storage solutions. Energiequelle GmbH, headquartered in Zossen, Germany, with branches in multiple countries, focuses on renewable energy projects like wind, biomass and solar power. The company aims to produce and market green hydrogen, partially converting it back to electricity. It plans a facility near Altech with wind, solar systems and a direct power line to RefLau. Scott Bessent’s appointment as Treasury Secretary suggests a balanced approach to Trump’s controversial trade policies, analysts at Deutsche Bank believe. While supportive of tariffs as a negotiating tool, Bessent advocates for a measured and gradual implementation strategy, potentially tempering the administration’s more aggressive trade stances. For instance, he has proposed increasing tariffs on China incrementally to mitigate economic disruptions. Bessent supports using tariffs strategically to boost Treasury revenue, revitalize domestic production, and reduce reliance on industrial output from strategic rivals, aligning with Trump's reshoring priorities. A proponent of reducing federal budget deficits, Bessent has outlined a vision to cut deficits to 3% of GDP, primarily through economic growth driven by deregulation and expanded oil production. However, his support for extending the Tax Cuts and Jobs Act (TCJA) and opposition to cuts in mandatory spending, such as Medicare and Social Security, pose challenges to achieving those targets. Bessent has also criticized current Treasury debt management practices, particularly former Treasury Secretary Janet Yellen’s strategy of issuing shorter-duration debt to lower borrowing costs. Bessent’s stance on the Federal Reserve could also shape economic policy. While he has expressed concerns about undermining Fed independence, Deutsche Bank noted he has floated ideas such as early Fed chair nominations or creating a “shadow” chair to influence market expectations. Despite these remarks, his extensive experience in global markets may lead him to advocate for a lighter touch, particularly to avoid destabilizing bond markets. “With inflation still elevated and deficits projected to remain large, challenging Fed independence would risk a return of bond market vigilantes,” Deutsche Bank analysts noted, adding that such a scenario could complicate Bessent’s goals of reducing debt issuance costs. Bessent’s nomination is expected to reassure markets of a pragmatic approach to economic policy, analysts believe, balancing Trump’s bold campaign promises with strategic implementation. While challenges remain, including managing elevated inflation and historically high budget deficits, analysts anticipate that Bessent’s expertise will provide steadiness during a period of significant policy shifts.

11/26/2024