AMTE.L Share News (AMTE)

(Sharecast News) - Lithium- and sodium-ion battery technology company Amte Power said on Wednesday that it was making "excellent progress" in line with its planned pathway to production.
The AIM-traded firm, which was holding its annual general meeting, said its cells were moving towards certification and high-speed production rates, as the company advanced plans to build a 'gigafactory'.

Chairman David Morgan said the development of the company's 'Ultra Energy' cell for automotive and energy storage, and its 'Ultra High Power' cell for automotive and aerospace, were moving towards UN38.3 certification, expected in December for the Ultra Energy cell and by March for the Ultra High Power cell.

"Both cells have been transferred to the UK Battery Industrialisation Centre (UKBIC) to scale up production to speeds representative of a gigafactory, which will demonstrate that the cell designs are capable of mass manufacture," Morgan explained.

"Once certified, and being manufactured at high production rates, these cells will be available for release to potential customers which in some cases will be for extensive trials through inclusion in product development programmes."

The company said the Ultra Storage cell was being designed for manufacture in Australia through Amte's joint venture company Bardan Cells, with UN38.3 certification expected by June next year, and would be available for release to potential customers thereafter.

It said the Ultra Prime cell, designed for use in deep wells, was commencing manufacture at the Amte site in Thurso.

The cells would be for a tier-1 supplier to the oil and gas industry, which would certify the cell ahead of volume supply under an existing off-take agreement in 2023.

"We believe we are well placed to transition to volume production with over 79 active engagements in total, the majority of which are for supply of the Ultra Energy and Ultra High Power cells," David Morgan told shareholders.

"Target customers include BMW, Arrival, a number of other leading brands in performance and commercial vehicles, energy storage operators and the UK's largest integrator of electric power trains.

"The negotiation of commercial offtake agreements will take place throughout 2022 with target customers who have acquired our battery cells for testing or who have made one-off orders for batches of cells."

Amte said the planning of its UK 'gigafactory' was progressing well, with discussions continuing with the government funded Automotive Transformation Fund, and a site set to be selected during 2022 from three currently under evaluation.

"Meanwhile, our Australian joint venture is nearing the completion of negotiations with equipment suppliers, and expects to select a site, order equipment and break ground by September 2022," Morgan said.

"We are pleased that progress is being achieved in line with our expectations, and we expect 2022 to be another significant year for the business."

At 1456 GMT, shares in Amte Power were up 0.61% at 166p.