Quarterly Activities/Appendix 5B Cash Flow Report

Altech Batteries Limited (Altech/the Company) (ASX: ATC and FRA: A3Y) is pleased to present its Quarterly Activities and Cash Flow Report.

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Funds Received for Sale of 25% of Altech Industries Germany

• Final instalment received of €1,583,333 of Deferred Consideration from Altech Advanced Materials AG (AAM), in relation to the sale of 25% of Altech's subsidiary Altech Industries Germany GmbH (AIG)

Outstanding DFS Silumina Anodes^TM Battery Materials Project

• Highly positive Definitive Feasibility Study (DFS) - 8,000tpa Silumina Anodes^TM project
• 8,000 tpa alumina-coated metallurgical silicon only
• Customers to blend coated silicon (10%) with their uncoated graphite source
• Means expansion from 15 gigawatt-hours (GWh) to 120 gigawatt-hours (GWh)
• Increase of battery energy density by at least 30%
• Capital cost estimated at €112 million with outstanding economics
• Pre-tax Net Present Value (NPV10) of €684 million
• Attractive Internal Rate of Return (IRR) of 34%
• Payback period is 2.4 years
• Forecast 18% CAGR growth of silicon in battery anodes till 2035
• Green accredited project using renewable energy
• Pilot plant construction in final stages for product qualification
• NDAs executed with two German automakers, two US automakers, one US battery materials supply company and one European battery maker

Silumina Anodes^TM Project DFS Expands Output 8-Fold to 120GWH

• Expanded the Silumina Project DFS output by eightfold
• 15 gigawatt-hours (GWh) to 120 GWh
• To produce 8,000 tpa alumina-coated metallurgical silicon only
• No change to plant and equipment used
• Customers to blend coated silicon (10%) with their uncoated graphite source
• Increase of battery energy density by at least 30%
• Potential reduction of graphite usage for potential customers
• China graphite export restrictions causing concerns
• Increased output meets long-term silicon anode demands

CERENERGY^® Battery Project Upgraded to 120MWh

• Annual output will now reach 120 1MWh GridPacks per annum
• GridPack stacking allows triple stacking with a simple electrical connection
• Small footprint conserving valuable land area
• Minimal maintenance required for GridPacks

Optimised Design of CERENERGY^® Battery Packs Completed for DFS

• Optimised design of 60 KWh battery pack completed
• Sleek stainless-steel exterior – maintains finish in all weather conditions
• Battery base incorporates high-temperature-resistant electrical cables
• Upgraded design to cell connector plates using mica insulation
• Two working prototype 60 KWh batteries in full production
• First stainless-steel battery case delivered – undergoing heat loss testing

Funds Received for Sale of 25% of Altech Industries Germany

Altech received the final instalment of Deferred Consideration from Altech Advanced Materials AG (AAM), in relation to the sale of 25% of Altech's subsidiary Altech Industries Germany GmbH (AIG). The amount received was €1,583,333.

On 23 December 2020, Altech announced that it had finalised the sale of 25% of its German subsidiary AIG for €5.0 million, with the Company to retain ownership of the remaining 75%. The Initial Cash Consideration of €250,000 was received upon the signing of the Share Sale and Purchase Agreement, with Deferred Consideration amounting to €4.75 million, payable in three equal instalments of €1.583 million. Altech had previously received the first two instalments, with the final instalment of €1.583 million now also received.

Managing Director Iggy Tan commented that “We are very pleased with the support of AAM in relation to the acquisition of the 25% of AIG, with AIG being the holder of Altech's Silumina Anodes^TM battery materials project. Altech continues with the construction of the Silumina Anodes^TM pilot plant on Altech's land in Saxony, Germany, and has recently announced the Definitive Feasibility Study for the full-scale 8,000tpa plant, that includes an impressive NPV(10) of €684 million and a payback period of 2.4 years. Altech intends to produce 120kg per day of the Silumina Anodes^TM product from the pilot plant, which will then be used to assist in securing an offtake agreement with an end user. Altech already has Non-Disclosure Agreements in place with some of the world's biggest automobile manufacturers. The receipt of the Deferred Consideration for €1,583,333 is well received and will be used for advancing Altech's Silumina Anodes^TM battery materials project as well as the CERENERGY ^® sodium-chloride solid state battery project”.

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