AMTE Power PLC share price, company news, analysis and interviews
AMTE Power plc (LON:AMTE), is a recognised brand in the production of high-quality lithium-ion batteries across a range of markets including automotive, aerospace, defence, oil & gas and energy storage.
The business has traditionally supplied both lithium cobalt oxide and lithium manganese oxide cells which can endure in the toughest environments and meet exacting standards.
Product Development and Commercialisation
AMTE Power helps our clients in the development of new battery cell technology, with a focus on design for manufacture. The team has extensive experience in electro-chemistry, cell technology development, manufacturing process development and simplification, quality control, scaling for manufacture and bringing new product to market.
Small Scale Manufacture and Supply
AMTE Power manufacture advanced Lithium battery cells, develop and supply rechargeable Li-ion and non-rechargeable Lithium cells. We also provide a manufacturing service for client companies, producing cells on their behalf.
They have the flexibility to manufacture a broad range of chemistries and cell types in pouch or cylindrical formats for our clients under sub-contract or as a Licensee.
Module and Pack Build
AMTE Power work with a design and manufacturing facility who have a team of engineering professionals with extensive experience who draw on traditional engineering practices whilst applying state of the art technologies to create and supply batteries for Automotive, E-mobility, Energy storage and Industrial portable applications. Whether you already have a battery design concept or are working to develop a product that requires a bespoke battery system, we are capable of supporting projects with an end-to-end design and manufacturing solution.
Don’t miss our latest interview for AMTE Power
AMTE Power expected to be key beneficiary of ATF in Gigafactory plans (Analyst Interview)
AMTE Power Plc (LON:AMTE), a leading developer and manufacturer of lithium-ion and sodium-ion battery cells for specialist markets, has announced that it has conditionally placed 124,476,380 new ordinary shares of 0.5 pence each in the capital of the Company at a price of 1.7 pence per Placing Share to raise approximately £2.1 million (before expenses).
Furthermore, to enable existing shareholders of the Company to participate in the equity fundraising, the Company is proposing to raise up to a further £0.25 million (before expenses) by way of a retail offer to be made to existing Shareholders of up to 14,705,880 new Ordinary Shares at the Issue Price via the Bookbuild Platform. The Retail Offer will be launched following Conditional Admission (as defined below) becoming effective. A separate announcement will be made in due course regarding the Retail Offer and its terms. For the avoidance of doubt, the Retail Offer is not part of the Placing.
WH Ireland Limited (LON:WHI) is acting as nominated adviser, joint bookrunner and joint broker in connection with the Placing. SI Capital Limited is acting as joint bookrunner and joint broker in connection with the Placing.
The Initial Recapitalisation Plan
Further to the announcement of the Initial Recapitalisation Plan on 25 July 2023, the net proceeds of the Placing will be used to provide further time for the Company and the potential new equity investor (the “Potential Equity Investor”, referred to as the Equity Investor in the Previous Announcement) to complete the proposed initial equity investment of £2.5 million.
During the course of its due diligence, the Potential Equity Investor has advised that it can, where suitable, introduce companies in which it has an equity interest to AMTE Power with the view to generating offtake agreements for sodium-ion battery cells. It would also provide similar introductions to other companies with which it has strategic relationships, where battery technology is currently being deployed at large scale in various industries, for example in renewable energy.
Given the potential for revenue growth that, in the Directors’ view, can be realised through these arrangements, AMTE Power intends to issue the Potential Equity Investor with compensatory warrants in recognition of the value of such offtake agreements. If required, shareholder approval for the issue of any such warrants will be sought in due course.
The board of directors of the Company has been informed by the Potential Equity Investor that its due diligence is progressing; that significant strategic work has been undertaken; that further confirmatory and technical due diligence is its current focus; and that this work is now anticipated to complete by the end of October 2023.
Arena Loan
The Company has, to date, drawn £0.5 million under the loan facility announced in the Previous Announcement with the remaining balance of £0.5 million available for drawdown upon agreement between Arena Investors LP and AMTE Power.
Pursuant to the terms of the Arena Loan, AMTE Power shall be obliged to repay Arena an amount equal to 50 per cent. of the amount which the aggregate net proceeds of the Placing and the Retail Offer received by AMTE Power exceeds £1.5 million, up to a maximum repayment amount of £0.6 million, based on the amount currently drawn.
The Placing
The Placing will be conducted in two tranches, with the first tranche of 11,879,770 Placing Shares being issued and allotted under AMTE Power’s existing shareholder authorities and the second tranche of 112,596,610 Placing Shares being issued and allotted subject, among other things, to the necessary resolutions required to implement the Conditional Placing being duly passed by Shareholders at a general meeting of shareholders which is proposed to be held at Scotland House, 58 Victoria Embankment, London EC4Y 0DS at 10.00 a.m. on 25 September 2023.
Application has been made to the London Stock Exchange for the admission of the Firm Placing Shares to trading on the AIM market. It is anticipated that Firm Admission will take place on or before 8.00 a.m. on 11 September 2023. Application will be made to the London Stock Exchange for the admission of the Conditional Placing Shares to trading on the AIM market and Conditional Admission will take place, subject to the passing of the Resolutions, on or before 8.00 a.m. on 26 September 2023.
The Issue Price represents a discount of approximately 81.62% per cent. to the closing middle market price of 9.25 pence per Ordinary Share on 7 September 2023, being the latest practicable date prior to the publication of this announcement.
Following Firm Admission, AMTE Power will have 48,312,070 Ordinary Shares in issue and, following Conditional Admission, the Company will have 160,908,680 Ordinary Shares in issue. The Placing Shares, assuming Conditional Admission occurs, will represent approximately 77.4 per cent. of the current issued share capital as enlarged by the Placing, and will be issued fully paid and will rank pari passu in all respects with the Company’s existing Ordinary Shares, including the right to receive all dividends and other distributions declared, made or paid after the date of issue.
Assuming Conditional Admission occurs, the proceeds of the Placing, net of expenses, will provide the Company with working capital until early November 2023.
The Company will make a further announcement in due course with respect to the publication of the circular, containing further details of the Placing and convening the General Meeting (the “Circular”). Such announcement will also set out the expected timetable for the Conditional Placing. Once published, the Circular will also be made available on the Company’s website at
AMTE Power Plc (LON:AMTE), a leading developer and manufacturer of lithium-ion and sodium-ion battery cells for specialist markets, has announced that it has agreed a new secured £1.0 million loan facility with Arena Investors LP in order to provide sufficient time for the Company and a potential new equity investor to complete a proposed initial equity investment of £2.5 million.
Funds under the Facility will be made available to the Group in two equal tranches of £0.5 million each, the first of which will be drawn down within two business days. The second tranche will be available to be drawn down upon mutual written consent between Arena and the Company. The Facility, which bears no interest but is fully secured over the assets of the Company, is repayable in full at 110 percent of the total amount drawndown on the earlier of: (a) the completion of the Proposed Subscription; or (b) the date falling three months following entry into the Facility.
In addition to providing this Facility, Arena has agreed to relinquish the conversion rights attaching to its pre-existing convertible bond facility (the “CBF”), announced on 17 October 2022, of which £4.0 million has been drawn down to date, with £3.75 million outstanding. The Company and Arena are due to formalise an agreement to repay amounts drawn down under the CBF as to £1.0 million on the first anniversary of the bridge loan agreement, subject to available funds, with the balance due on the second anniversary. In consideration for this amendment, the Company and Arena will enter into documentation granting Arena warrants to subscribe for 2 percent of the share capital of the Company as enlarged by the Initial Recapitalisation Plan at a 100 percent premium to the issue price thereunder. The warrants will become exercisable 12 months following the subscription under the Initial Recapitalisation Plan with a duration of 24 months from issue. Additionally, the Company has granted Arena security over the Company’s assets for the full loan.
The Equity Investor has conditionally proposed to subscribe £2.5 million, at an indicative price, subject to due diligence and certain other conditions, of 1.7 pence per share for 147,058,823 new ordinary shares of 0.5p each in the capital of the Company, which would result in the Equity Investor holding 80 percent of the issued share capital of the Company, as enlarged by such subscription. The Proposed Subscription of £2.5 million will, if completed, provide the Company with sufficient financial resources to the end of September 2023. However the Equity Investor has indicated that, following its Proposed Subscription and at its own discretion, it intends to implement a financial solution for the Group, including providing for future funding requirements. The Equity Investor would also have the sole discretion to allow the investment in the Company under the terms of the Initial Recapitalisation Plan to be extended to other investors. The Company notes that the terms and quantum of the Initial Recapitalisation Plan and any funding beyond has yet to be agreed and remains uncertain at this stage.
At this stage, discussions on the Initial Recapitalisation Plan remain at an early stage and there can be no certainty that these discussions will be successfully concluded, nor the terms or timing thereof. The Initial Recapitalisation Plan would be subject to, amongst other things: (i) the Equity Investor satisfactorily concluding its internal procedures and due diligence; (ii) the Takeover Panel agreeing to waive the obligation under Rule 9 of the City Code on Takeovers and Mergers to make a mandatory offer for the entire issued share capital of the Company, subject to the approval of the independent shareholders; (iii) the Investment Security Unit of the Department for Business, Energy and Industrial Strategy approving the Proposed Subscription in accordance with the terms of the National Security and Investment Act 2021; and (iv) the Company obtaining the necessary shareholder authorities at a general meeting of shareholders of the Company to issue the Subscription Shares.
Further announcements will be made in due course.
Alan Hollis, CEO at AMTE Power, said:
“I am very pleased to announce the bridging loan to be provided by Arena, which buys AMTE Power the time and financial resources to allow the Equity Investor to complete its due diligence and internal procedures ahead of some much needed further investment in the business.”
AMTE Power plc (LON:AMTE), a leading UK developer and manufacturer of lithium-ion and sodium-ion battery cells for specialist applications in growing markets, has become the first European business to receive UN38.3 transportation testing certification for a sodium-ion cell.
The accreditation for its Ultra Safe sodium-ion product marks another important step forward in AMTE Power’s commercialisation plans, allowing it to access global markets. UN38.3 certification has been adopted by regulators and competent authorities around the world as an essential standard for the safe transportation of cells. The protocol includes identifying/classifying cells; testing/qualification requirements; design guidance/conditions and packaging/shipping obligations.
Alan Hollis, CEO at AMTE Power, said:
“Battery energy storage for homes and industry will play a fundamental role in helping the UK to deliver its decarbonisation goals and maximise the potential of renewables. Sodium-ion batteries are fast becoming an alternative to lithium counterparts, particularly for energy storage applications. Our sodium-ion cell has been specifically developed with these applications in mind, providing a safe, stable solution that doesn’t add to pressure on lithium stocks. We are seeing growing demand for our market leading technology used in the Ultra Safe product, and achieving UN38.3 certification marks a major milestone in our plans to scale up production to meet our customers’ needs.”
“Furthermore, I am delighted to announce that our Ultra Safe cells have now been incorporated into 12 and 43-volt battery packs developed by AceOn for mobile energy storage. These are believed to be the first UK-developed battery packs based on sodium-ion and their performance will be demonstrated powering an inverter system at the Renewable Energy Workshop and Mobile Solar Power Energy Storage System Demonstration (REWED) today.”
Mark Thompson, managing director at AceOn, said:
“Sodium-ion batteries are the next big development in battery technology. As far as I am aware we are the first company to have UK-developed sodium-ion battery packs in our hands. The fact that we are collaborating with a UK manufacturer in AMTE Power, and developing and building the packs in the UK ourselves, is vitally important for the country. It represents a real step-change in battery chemistry and offers huge opportunities across a range of industries and applications.”
AMTE Power (LON:AMTE), a leading UK developer and manufacturer of lithium-ion and sodium-ion battery cells for specialist applications in growing markets, has announced that it has signed a memorandum of understanding (“MOU”) with CalPac Resources Limited, which is developing novel technology derived from green hydrogen manufacturing to refine copper from industry scrap.
The MOU is intended to see AMTE Power explore the use of CalPac Resources’ recycled copper technology to produce the anode material in its Ultra High Power, Ultra Safe and Ultra Prime products, thereby contributing to delivering the UK’s net zero goals.
Copper resources are expected to come under increasing pressure as decarbonisation efforts ramp up, with a projected global deficit of up to 9.9m tonnes by 2035. The UK is the world’s fourth largest copper waste exporter and with no copper refineries in the country, millions of tonnes currently have to be imported for manufacturing each year.
The partnership marks a step forward in decarbonising UK battery production and establishing a homegrown supply chain that can underpin a wider British battery ecosystem.
Both AMTE Power and CalPac Resources are planning to build facilities at the Michelin Scotland Innovation Parc (MSIP) in Dundee. MSIP was announced last year as AMTE Power’s preferred location for its first Gigafactory.
Tom Anderson, Managing Director at CalPac Resources, said: “This move represents a solid shift towards a truly circular industrial economy. AMTE Power will be the first battery manufacturer to use 100% local and zero-process-emission copper in its batteries, a ground-breaking development in UK battery manufacturing.”
John Valentine, Supply Chain Director at AMTE Power, said: “We are making strong progress in securing the critical materials needed for our cells as we scale up production ahead of delivering our first Gigafactory. Working with UK-based, sustainable producers is absolutely a priority for us reflecting our wider ESG strategy, and that is why CalPac Resources is the ideal fit. Our partnership demonstrates the potential to create an end-to-end battery industry here in the UK, powering the net zero economy of the future and unlocking green collar jobs.”
AMTE Power plc (LON:AMTE), a developer and manufacturer of lithium-ion and sodium-ion battery cells for specialist markets, has today announced Final Results for the year to 30 June 2021.
Operational and Strategic Highlights
· All three of the Group’s highly differentiated battery cells in development made good progress during the year and remain on track for one to be released in each of the next three years.
· In June AMTE Power was selected as the lead in a new Government funded three-year project called ULTRA focused on bringing two AMTE Power lithium-ion batteries to automotive readiness alongside key brands. BMW and Arrival sit on the project steering group.
· Under a framework agreement with the publicly funded £130 million UK Battery Industrialisation Centre (“UKBIC”) AMTE Power is one of the first to take advantage of this facility as part of the scale up of its products in advance of commercialisation.
· As we move towards production the active engagement mix has moved away from development orientated engagements towards commercial supply engagements, up over the six months to 30 June 2021 from 9 to 19 out of a total of 68 active engagements.
Pathway to Volume Production
· Production expansion plans for a UK Gigafactory (initially 2GWh increasing to 10GWh and beyond over time) have made substantial progress. The Group has engaged with local authorities for regions with preferred sites and national funding sources to secure government grants and developed detailed designs.
· The Group expects to confirm the site of its UK based Gigafactory and government funding support in 2022.
· Constructive collaboration and dialogue with a wide range of commercial partners providing underlying confidence in the route to commercialisation for the Group’s portfolio of battery products.
· Post year end announced signing of shareholder agreement to formalise joint venture with InfraNomics in Australia, targeting the energy storage sector.
· The joint venture, called Bardan Cells, will operate from Australia’s “Lithium Valley” Kwinana Industrial Area, and has plans to build and fund a 200,000 cell micro production line as a forerunner to establishing a 1-2GWh per annum Gigafactory.
Financial Highlights
· UK and European grants plus income from commercial partners led to turnover increasing to £2.0 million (2020: £1.3 million).
· Completed a successful IPO with admission to AIM on 12 March 2021 alongside an oversubscribed placing to new and existing shareholders raising gross proceeds of £12.9 million.
· Additional funds have enabled the acceleration of investment into key people, the completion of first phases of both product development and the planning for an AMTE Power Gigafactory.
· Adjusted EBITDA of (£3.2m) (2020: (£2.0m)) and adjusted loss before tax of £3.1m (2020: (£2.0m)) following the adjustment for share based payments of £0.9m in 2021 and £0.1m in 2020.
· Cash and cash equivalents at 30 June 2021 of £9.3m (2020: £1.0m).
Financial Outlook
· Good visibility on securing additional grant funding in line with IPO expectations.
· Product releases will provide increasing visibility on scale and timing of prototype and product revenues.
CEO Kevin Brundish joins DirectorsTalk Interviews to discuss full year results for the year ended 30th June 2021. Kevin takes us through the key highlights for the year, explains where they are on the pathway to production, whether a JV in Australia is a side line to Uk activities or not, key milestones for the business investors should look out for over the next 12 months and a bit more detail on nature of the commercial agreements being seen now.
https://vimeo.com/622343382
Kevin Brundish, CEO of AMTE Power said:
“This has been a successful period for the business. While the IPO was a major focus and success for the Company, we have also made excellent progress towards commercialising our portfolio of battery products. We are collaborating well with Government funded organisations, tasked with accelerating the UK’s move away from fossil fuels to battery power, such as Automotive Propulsion Centre, the Faraday Institute and the UK BIC. Our products are being tested with these bodies and commercial partners for being suitable for large scale manufacture as well as being capable of meeting the commercial needs of our future customers.
The Government is actively driving the UK to become a leading centre for battery production and future innovation. Based on our direct conversations with government and their public statements, we believe they continue to be fully committed and this makes for an ideal backdrop for AMTE Power to deliver on our plans.
We continue to focus on the development of multiple cells for a variety of specialist markets, not just automotive, all with sufficient scale to make them highly commercially attractive.”
Chair’s statement
I am delighted to be making my first full year results statement for AMTE Power as a public company. The successful IPO earlier this year has placed the business in a strong position with the financial support to achieve its immediate commercial targets, and in the 12 months under review significant progress has already been made towards those targets.
Strategy
AMTE Power was created to focus on the requirements of specialist customers whose power, performance and endurance needs are outside the scope of the mainstream international battery manufacturers and also to not simply be a developer but have the manufacturing capability to deliver products. Despite being a specialist, the markets and customers being targeted are significant.
Currently, the Group has three highly differentiated battery cells in development, with one expected to be released in each of the next three years, and a pipeline of technologies for future development. Alongside proving the capabilities of the individual cells to be manufactured at scale and their ability to meet the needs of our commercial partners and future customers, the Group will need to build a new UK manufacturing facility to expand capacity, initially to approximately 2GWh per annum. The market will ultimately determine the speed and scale of our expansion, and we have not set an upper limit, with plans that include scale-up to 10GWh per annum and beyond. We are currently expecting to have our expanded volume manufacturing plant in place by 2024/25. Progress on product development and intellectual property, commercial partnerships and the building of the new manufacturing facility are the key elements of the Group’s focus.
Delivery
Despite completing a very successful IPO during the period under review, the management team also delivered against its operational targets. Product development continued apace throughout the year. We are currently evaluating at UKBIC the speed of manufacture of both the Ultra High Power and Ultra Energy cells, with early results being positive for both cells. At the year end, the Group was involved in 68 active engagements on a range of opportunities including commercial development and product request opportunities as well as advanced discussions to create consortia to secure grant funding for focused projects that support our cell development programmes. Next year the Group intends to identify its preferred site for building a new manufacturing facility. The Group expects to attract significant government support to help fund the building of the new site.
The Board
As part of the IPO, the Board was pleased to welcome Alyson Levett as a Non-Executive Director. Alyson joined the Board in January 2021 and brings significant public company experience. Adam Westcott, Chief Financial Officer, also joined the Board during the financial year (December 2020) but had been part of the senior management team since joining the Company in January 2018. In June 2021, Adam decided to leave the Company to take up a new role and will be stepping down as director at the upcoming Annual General Meeting and I would like to thank Adam for his significant contribution to the business.
I am also delighted to welcome James Hobson, an experienced AIM company finance director, who joined on 4th October 2021 to succeed Adam.
Employees
It would be remiss of me not to thank our employees for all of their efforts in this year of significant change and evolution in our company. We have had to deal with the impact of COVID across our business and our customers and suppliers. In addition, we have significantly grown the team as we look towards product release.
Outlook
AMTE Power is in a good position. There is a high level of commercial interest in our products. We remain on target with the plans to achieve commercialisation we set out at the time of our IPO and we can see new opportunities arising as we collaborate more fully with our range of partners. That said, our focus will remain on progressing our three core specialist battery cells into full scale production.
David Morgan
Independent Non-Executive Chair
CEO’s Review
Introduction
FY21 has been an important year for AMTE Power. Firstly, the Group completed a successful IPO in March 2021 raising new capital in an oversubscribed placing and, secondly, there was a step change in the Government’s commitment to making the UK a centre of excellence for battery innovation and production. Under the “Green Industrial Revolution” the Government set out its plans for decarbonisation with a flagship policy of switching the motor industry to electric vehicles by 2030.
For AMTE Power, becoming a public company is part of our progression towards the commercialisation of our portfolio of battery cells and the Government’s active involvement in our industry is fundamental to the success of the sector. As a result, we believe the Group is well placed to achieve its commercial targets.
Financial review
As a Group we grew turnover 55% to £2.0m compared to £1.3m for the previous period. This was driven by an increase in grant income of 176% compared to the previous period. Grant income accounted for 65% of turnover in the year (up from 37% in 2020). The Group continues to invest in its product development, resulting in operating losses of £3.8m for the year (2020: £1.9m).
The dominant event in the year was the raising of £12.9m of gross proceeds and the IPO for the business, resulting in a strong financial platform from which to finalise the product development and lay the groundwork for the building of our own Gigafactory.
Operational review
We made good progress on the four key elements which come together to progress the portfolio of battery cells towards commercialisation.
Product development
The Group’s most developed product for the automotive battery cell market is Ultra High Power, a rechargeable pouch format battery cell. Ultra High Power is being developed in conjunction with several specialist manufacturers in the automotive industry and has the ability to deliver power consistently at a very high rate, thereby enhancing acceleration in high performance vehicles. At first, the Ultra High Power solely targeted the high-performance motor industry but the potential is clear to also target mainstream performance cars and advanced interest from motor manufacturers reflects this.
The Group’s cell for the oil and gas market is Ultra Prime, a single use cylindrical battery cell. Ultra Prime is being designed with very high energy and high temperature performance for use in challenging environments. In addition to these features, the Ultra Prime cell is designed to have a very long standby life with no loss of performance, making it ideal for use not only where restricted access is a key consideration, but also where the battery needs to be in situ for an extended period.
We already have a development and supply agreement for our Ultra Prime cell with an equipment manufacturer within the oil and gas sector. Cells manufactured in low volume have already demonstrated that they meet the performance required for our client base, with growing evidence, as time passes, of the longevity of the cell. The manufacture of cells is now being transferred back to Thurso in readiness for higher volumes, with a target of up to 1 million cells per annum, for onward supply to the client for industry certification testing prior to supply commencing. Early interest is also being seen from other market sectors, in particular defence, due to its very high energy density.
Ultra Safe, aimed at the energy storage market, is based chemically on sodium, an element which is more readily available, and at a significantly lower price, than lithium. Good progress was made during the year towards product release and, whilst at an earlier stage than the other pipeline products, it has the greatest opportunity to be a transformational product in the battery market place, given the significant potential advantages it has over lithium-ion-based battery cells as a storage medium in terms of safety, efficacy and cost.
Earlier this year, AMTE Power signed a framework agreement with the publicly funded UK Battery Industrialisation Centre (“UKBIC”). UKBIC is now coming online and AMTE Power is one of the first to take advantage of this facility as it begins the scale-up of its Ultra High Power and Ultra Energy cells. This is an important step in demonstrating that AMTE Power’s products can be manufactured at a speed consistent with Gigafactory rates of production (“Gigapace”) and we are pleased to report that certain aspects of the manufacturing steps are already achieving the rate of production that will be required if we are to be able to meet the expected level of customer demand and we are not aware of any impediments in other aspects.
Intellectual Property
The cells under development have embedded innovation and intellectual property, which is licensed from third parties. AMTE Power has also generated its own intellectual property which is protected through patenting, registered designs and trade marks. The Ultra brand of products is now almost fully trade marked for use. Three patent applications have been submitted in the reported period to strengthen the IP base in the Group.
Key Performance Indicators (‘KPIs’)
The Board reviews a range of targeted KPIs, which measure the progress being made by the Company. Product KPI’s link development milestones and product performance to the product release dates. Intellectual Property KPI’s such as patent applications, product trademarks and registered designs, are monitored to ensure our products are protected. Commercial KPIs link the product development activities to the sales pipeline and engagement of commercialisation partners.
Operational KPIs ensure that overheads and cash resources are tightly controlled. Industrialisation KPI’s monitor our progress towards large scale manufacturing and link to our product development end user client engagements. The most important financial KPIs are the cash position, turnover and profitability of the Company, which remain under regular review by the management and board, the control of which is also reviewed by the Audit and Risk Committee.
Commercial collaboration
A key signal as to the future demand for our battery cells is the involvement of OEMs in key projects, such as ULTRA, a new government funded three-year project which AMTE Power is to lead and which focuses on bringing two AMTE Power lithium-ion batteries to automotive readiness alongside key industry brands. This project, and others like it to come, demonstrates the high level of interest in our battery cells both from government and commercial partners. Our objective is to secure long-term engagements with clients which are aligned with our timeline for when our products become accredited and ready for volume production. Vehicle OEMs including BMW and Arrival are part of the project’s steering group.
Gigafactory
Alongside the product development, we continued to progress our plans for a “Gigafactory” as part of the proposed expansion of our production capability, developing our ability to meet the expected customer demand for our products. Discussions with UK Government funding sources are well developed and we expect to gain financial support behind our expansion plans.
The Group has also continued to develop its relationship with InfraNomics, a leading Australian infrastructure provider, to create a new JV that will manufacture battery cells for use in power storage systems with initial plans for 2GWh per annum production levels in Australia. As recently announced, the new venture will operate from the “Lithium Valley” Kwinana Industrial zone in Western Australia, an area dedicated to the development of lithium-related products and which contains one of the largest raw material deposits in the world for li ion batteries.
Outlook
Electrification is happening and is driven by a global shift away from fossil fuels and in the UK by a government determined that the country plays a central role in battery production. AMTE Power is a specialist within a very large market and offers highly differentiated products to substantial corporations whose needs are different from the mainstream. In the trials and tests we are currently conducting we know we are meeting their varying requirements for additional power, durability and extended life, and as a consequence we are excited by the future potential of our business.
AMTE Power plc (LON:AMTE) CEO Kevin Brundish joins DirectorsTalk Interviews to give an overview of what the company does. Kevin explains who AMTE Power is, the market opportunity, timescales involved, how they combine working with the UK Government and commercial partners and how the company will meet the demand.
https://vimeo.com/592225318
AMTE Power plc, is a recognised brand in the production of high-quality lithium-ion batteries across a range of markets including automotive, aerospace, defence, oil & gas and energy storage.
The business has traditionally supplied both lithium cobalt oxide and lithium manganese oxide cells which can endure in the toughest environments and meet exacting standards.
AMTE Power plc (LON:AMTE) Chief Executive Officer Kevin Brundish caught up with DirectorsTalk for an exclusive interview to discuss what the company does, the market opportunity, timescale for achieving goals, working with the UK government and how they will meet demand.
AMTE Power are launching a series of next generation products based on new chemistries and cell structures that are designed to solve key problems in power delivery, energy performance and safety. Joining me today to discuss the company is CEO Kevin Brundish.
Q1: Just to start off, can you just tell us who is AMTE Power?
A1: The company is a developer and manufacturer of lithium-ion battery cells. The company was founded in 2013 with myself along with some ex-colleagues from QinetiQ.
We’ve really been focussing on bringing to market somewhat differentiated products, really that sit complimentary to the majority of lithium-ion batteries that have been manufactured to date.
Q2: So, can you tell us what is the market opportunity?
A2: We’re facing a very very large market opportunity, it’s a very exciting time to be in the battery world.
What we’re really seeing here is a huge global push on environmental change, climate change being the real key driver there. That has put electrification of vehicles and renewable energy and alongside that energy storage in the forefront so batteries form a fairly central part of that opportunity/requirement.
So, the opportunity that’s opened up, both with automotive moving to electrification and energy storage in renewable energy is over a $100 billion market, according to Bloomberg, and that’s seen worldwide. You can see the huge momentum that’s built up around Europe with a lot of new battery gigafactories coming online.
Q3: What is the timescale to achieving your goals?
A3: We are a long way through bringing those products to market, as I mentioned earlier.
We are looking at three products coming to market over the next three years, each of which have specialised performance features, a good example being the Ultra High-Power cell which is really us putting as much power into as smaller volume as possible.
Traditional cells have concentrated on energy which is equivalent to how much fuel you have in your tank and how far you’ll go, and we’ve been developing a cell which is all about power which is how fast that fuel goes. It’s really about acceleration rather than range.
So, that’s what we’ve been doing and we’re expected to release those products over the next couple of years.
Q4: How do you combine working with the UK government and commercial partners?
A4: So, the UK government has invested extensively within bringing a battery cell manufacturing market to the UK.
A great example of that is in June when we announced we had won some funding from the UK government alongside key industry partners to take our High-Power cell, in this case, through to volume manufacturing.
We’ve also recently announced that we expect to be appointed on another programme which will take that same cell into a cylindrical format and again, that is alongside partners including BMW and BP.
So, the UK government is extensively supporting the creation and development of this industry.
Q5: How will AMTE Power meet demand?
A5: We already have a manufacturing facility on the north coast of Scotland, I think that gives us a distinct advantage compared to other entities in the space who are not able to manufacture developing of the cells so we’re in good shape.
Demand is expected to exceed the capacity there so we’re using the knowledge of our products and the knowledge that we have in already being able to manufacture to look at expanding that manufacturing capacity.
So, we’re looking at a 2GWh plant to come online in 2024/2025, the substantial part of that design work has been done and we’re looking to choose a selected site over the next 6-12 months. That’ll really be focussed on the automotive programmes, we’ve also got expected expansion elsewhere, outside of the UK where we’ll be looking at our energy storage products.
So, this is all about expanding our manufacturing capacity to meet the demand.
AMTE Power Plc (LON:AMTE), a leading developer and manufacturer of lithium-ion and sodium-ion battery cells for specialist markets, announced on 17 October 2022 that it has signed non-binding heads of terms to enter into a proposed £5 million convertible bond facility with Arena Investors, LP. The bond is available for drawdown in three tranches. The company entered into Definitive Documents relating to the convertible bond facility following the passing of the Resolutions at the AGM held on 3 November. On 4 November, the Company issued a tranche 1 drawdown notice in respect of the first £3.0 million of the Facility.
DirectorsTalk caught up with Nick Spoliar, Research Director at WH Ireland Capital for his views. Nick noted:
“The funding will support AMTE in its key transition from pilot activities to industrial production. AMTE announced good progress in manufacturing trials for its high powered UHP battery cell at UKBIC, with strong performance as against target specifications on more scaled up (commercial scale equipment).”
In terms of AMTE’s future sales prospects, Nick added, “AMTE has numerous non-binding MOU’s which the company has previously announced that equate to a sales pipeline of £240m.”
AMTE Power’s share price is 69p and a Market Cap of £24.1m.
AMTE Power plc (LON:AMTE), is a recognised brand in the production of high-quality lithium-ion batteries across a range of markets including automotive, aerospace, defence, oil & gas and energy storage.
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