altec battery (ASX:ATC) has signed its third offtake master agreement for CERENERGY GridPack battery technology. This time, we have engaged Axsol GmbH, a renewable energy provider based in Germany.

The agreement will see Axsol, a NATO-certified supplier, exclusively distribute Altech’s CERENERGY batteries to the Western defense industry. The contract includes an initial 10MWh of generation in 2027, increasing to 30MWh per year from 2029 to 2031. There is also an option to expand up to 120MWh per year depending on availability.

Altech’s CERENERGY battery technology uses a sodium chloride solid state system as an alternative to lithium-ion batteries. The battery is non-flammable, fire-resistant, and designed to operate in extreme environments, making it suitable for defense and government use.

Altech and Axsol will also collaborate on a multi-system battery management system to integrate different battery technologies and energy sources. This is in line with the growing trend of using hybrid energy storage systems to increase flexibility and resilience.

Altech plans to begin producing CERENERGY batteries at its facility in Saxony, Germany, with deliveries to Axsol expected to begin in early 2027.

Altec shares were trading 2.33% higher at 4.4 cents.