Altech Batteries (ASX: ATC & FSE: A3Y) has received conditional approval for up to €46.11 million in German government funding for its CERENERGY® sodium-chloride battery project in Saxony.
The approval was granted under Germany’s federal STARK economic development program and is structured as a non-dilutive grant covering about 30% of eligible project capital expenditure.
The funding relates to the planned construction of a 120-megawatt-hour CERENERGY® battery manufacturing facility in eastern Germany.
Conditions attached to funding approval
The grant approval is conditional but binding, subject to two final requirements. First, the project must reach full financial close by 30 June 2026. Second, the funding must receive final parliamentary approval under Germany’s 2026 federal budget.
If those conditions are met, the grant will materially reduce the equity and debt required to fund construction of the facility. Management said the project has now completed the second and decisive stage of the STARK approval process.
Technology focus and European strategy
CERENERGY® is a sodium-chloride solid-state battery developed in collaboration with Fraunhofer IKTS.
The technology is lithium-free and uses table salt as a core input. It is designed for stationary energy storage applications rather than electric vehicles.
According to the company, the batteries are fire- and explosion-proof, operate in extreme temperatures, and are expected to have operating lives exceeding 15 years.
The project aligns with European efforts to localise battery manufacturing and reduce reliance on lithium, cobalt, graphite, and copper supply chains.
Management commentary
Managing Director and Chief Executive Officer Daniel Raihani said the grant materially alters the project’s funding profile.
“Securing conditional binding funding approval of up to €46.11 million under Germany’s STARK program is a major milestone for the CERENERGY® project,” Raihani said.
“The grant materially de-risks the project’s capital structure by covering approximately 30% of eligible investment costs.”
He added that the company remains focused on completing financing and advancing toward construction in Saxony.
Why the location matters?
The proposed plant will be built in Saxony, a region targeted for industrial transition support following Germany’s coal phase-out.
The STARK program is designed to attract advanced manufacturing projects that deliver long-term economic activity in those regions.
For Altech, the grant support lowers execution risk while anchoring its CERENERGY® technology inside the European energy storage market.
The company said the facility is intended to supply grid-scale storage solutions across Europe once operational.
