Altech Advanced Materials (AAM) has agreed to acquire a 25pc interest in Altech Chemicals’ German subsidiary, Altech Industries, Dresden for €5mn ($5.9mn).
AAM’s acquisition will help the specialty materials company to gain access to Altech Chemicals’ high-purity alumina (HPA) for use in lithium-ion batteries, the company indicated on Monday. The HPA will be manufactured by Altech industries.
Moreover, Altech Industries will apply for the right to use patents related to the production of the material at its second facility that is being set up by Altech Chemicals.
Prior to the construction of the second plant, Altech Industries will begin to produce anode quality product developed by Altech Chemicals with purchased HPA raw materials for the European lithium-ion battery market.
One of the plants will be in Saxony, Germany where the government has committed €7.38mn ($8.72mn) to Altech Industries.
Under the agreement, AAM will pay the amount to Altech Chemicals in four installments over a three-year period, with an initial €250,000 payment transferred at signing and the remaining thirds paid annually. Thus, the sale allows Altech Industries to apply for European Union and German manufacturing incentives based on employment increases, technology development, environmental sustainability, and a closer supply chain.