What began as a company specialising in battery monitoring electronics has grown into a diverse engineering operation exploring battery innovation and the future of energy storage. At its Maltese facilities, Abertax is developing new technologies that span battery diagnostics, modular systems and emerging chemistries.
On the outskirts of Paola, Malta’s industrial landscape hides a company that has quietly influenced the battery industry for decades. Inside the Abertax facility, rows of CNC machines sit alongside circuit board assembly stations and battery testing equipment. Engineers move between workshops and laboratories, refining designs that range from battery sensors to experimental sodium-ion systems.
At the entrance to the factory stands an unusual sculpture made entirely from discarded industrial materials. Plastic sprues, rubber offcuts and metal components are woven into a piece of art that symbolises the philosophy guiding the company: waste should be reused, materials should be valued, and engineering should solve practical problems. This mindset has helped Abertax evolve from a supplier of lead-acid battery electronics into a company exploring some of the most pressing questions facing the energy storage sector: how batteries are monitored, reused and ultimately recycled.
A name with a maritime origin
The company’s origins are as unconventional as its artwork. Abertax traces its roots to its founder Werner Schmidt, together with its co-founder Dr. Martin Florin, a German ex-ambassador to Malta. While visiting Malta during his retirement, Schmidt spent time at a marina where his boat was moored at berth number fourteen – erbatax in Maltese. The word gradually evolved into the name Abertax.
Today the company is led by CEO Malcolm Tabone, while Professor Joseph Cilia serves as chairman of the group. The leadership structure reflects the firm’s engineering culture: many of the managers are technical specialists rather than purely business executives. “Most of our management team comes from engineering backgrounds,” Tabone explains. “So when we look at a project we consider not only the financial side but also the technology and where the market is heading.”
This combination of technical thinking and strategic flexibility has shaped the company’s development. Strong, continuous support is additionally provided by KD Merz, a well-known battery specialist, having accumulated over 40 years in the industry.
Engineering close to the factory floor
Abertax’s approach to innovation is rooted in the interaction between design and production. In many large organisations these activities are separated, but at Abertax the two are deliberately integrated. Engineers who design new products also spend time working alongside manufacturing teams.
“If you only design something on a computer and never see how it is built, you will create problems,” says Tabone. “Our engineers go into production and support the process. That feedback helps us improve designs much faster.”
The system allows the company to respond quickly to customer needs. Many products originate from problems observed in real-world applications – sensors for batteries operating in harsh environments, monitoring systems for remote installations or electronics designed to improve safety.
Diversification: the ‘octopus’ strategy
Abertax has survived several major economic disruptions in the past two decades, including the financial crisis, the COVID-19 pandemic and supply chain disruptions following geopolitical tensions.
One reason is its deliberately diversified business model. The company refers to this as the “octopus strategy” – the idea that having many legs allows the business to remain stable even if one market weakens. “We limit the exposure to any single customer,” Tabone explains. “If one sector slows down, another can keep the company going.”
Lead-acid batteries still represent a large portion of the global automotive battery market and remain an important area for Abertax. However, the company is increasingly expanding into new technologies including lithium and sodium-ion battery electronics, monitoring systems and energy storage solutions.
A vertically integrated operation
Walking through the Mosta facility reveals how much of Abertax’s technology is developed internally. The company maintains its own tool shop where engineers design and manufacture injection moulds, mechanical components and automation systems. Machines in the workshop include CNC milling machines and lathes, as well as electrical discharge machining (EDM) equipment used for extremely precise cutting.
Production often begins with digital CAD models. Engineers may produce prototypes using 3D printing before machining final components from metal.
Precision measurement equipment capable of micron-level accuracy ensures the tight tolerances required for battery components.
This level of vertical integration allows the company to move quickly from concept to production while maintaining control over quality.
Electronics built for hostile environments
Electronics manufacturing is another core activity at Abertax. Circuit boards for battery monitoring systems are assembled using both automated pick-and-place equipment and manual processes. After soldering, many electronic assemblies are sealed using epoxy potting.
Potting protects components from moisture, vibration and chemical exposure – conditions frequently encountered in battery environments. “Acid eventually finds its way everywhere,” one engineer explains during the factory tour. “If electronics are properly potted, they are protected from that environment.”
Every sensor undergoes several testing stages, including environmental checks and calibration across temperature and voltage ranges. The result is equipment designed to operate reliably in demanding industrial conditions.
Small team, more than battery innovation
Despite employing a relatively small research team, Abertax is involved in a wide range of development projects.
Much of the work focuses on battery electronics and monitoring systems. This includes battery management systems (BMS), communication software and algorithms for different battery chemistries.
The company is also collaborating with the University of Malta on several research initiatives. In these projects the university conducts laboratory research while Abertax contributes engineering expertise, hardware prototypes and testing facilities. The collaboration has produced experimental energy systems including solar-powered boats and hybrid propulsion concepts.
The challenge of second-life batteries
One of the company’s most recent research projects examines the potential reuse of electric vehicle batteries. Typically, EV batteries are considered to have reached the end of their automotive life when their capacity falls to around 70% state of health. Although they no longer deliver optimal vehicle range, they still contain significant energy storage capacity.
Second-life applications – particularly stationary storage – have been widely proposed as a solution. However, Abertax’s analysis highlights several practical challenges.
Disassembling EV battery packs and repurposing the modules requires extensive work. New electronics must be developed to manage the cells safely, and providing warranties for reused batteries introduces financial risk. “By the time you rebuild the electronics and provide a guarantee, the cost is not much less than a new battery,” Tabone says.
In many cases, the most realistic recycling route may remain the conversion of batteries into black mass – a material containing recoverable metals that can be processed further. Nevertheless, limited reuse may still be possible when individual modules replace failed modules in existing battery packs.
Designing batteries for reuse
Learning from these challenges, Abertax has developed a battery concept that allows electronics to be detached from the cells. The idea is simple but potentially powerful.
By separating electronics from the battery pack:
- cells can be replaced more easily
- electronics can be reused
- recycling becomes simpler
The design also improves cooling and maintenance access. Communication interfaces such as CAN bus and Bluetooth allow the batteries to interact with external systems or smartphone applications.
Safety has been enhanced through an electronically controlled fuse system that provides an additional protective layer beyond standard circuit protection.
Sodium-ion: opportunity from local resources
Another emerging focus for Abertax is sodium-ion battery technology. Compared with lithium-ion batteries, sodium-ion systems rely on more abundant materials. Sodium is widely available, and the chemistry can offer improved safety characteristics.
For Malta, this presents intriguing possibilities. Much of the island’s freshwater supply is produced through reverse-osmosis desalination. The process generates concentrated brine streams rich in salt.
Abertax and the University of Malta are exploring whether this brine could be processed to recover sodium compounds for battery production.
The company has also experimented with producing hard carbon anodes from olive residues, turning agricultural waste into a potential battery material.
“Malta does not have many natural resources,” says Tabone. “But we have seawater and agricultural by-products. We are investigating how these could contribute to battery materials.”
Sodium-ion battery research
Abertax is testing commercially available sodium-ion cells while developing electronics and battery packaging concepts.
Potential advantages
- abundant raw materials
- improved transport safety
- ability to store and ship fully discharged
Technical challenges
- reduced energy density compared with lithium
- charging limitations at low temperatures
Early testing suggests sodium batteries can discharge well at low temperatures but require carefully controlled charging to prevent degradation. Despite these limitations, the technology may be well suited to stationary storage, marine applications and other sectors where safety and resource availability are priorities.
Marine energy experiments
Abertax has already explored energy storage in marine environments through collaborations with the University of Malta.
One project involved a solar-powered research boat equipped with battery storage, monitoring electronics and renewable propulsion systems. The project allowed students and engineers to study how different battery chemistries perform in marine conditions.
The marine sector is particularly interesting because safety concerns have led some insurers to restrict lithium batteries on boats. This could create opportunities for alternative chemistries such as sodium-ion or advanced lead-acid systems.
Hybrid propulsion systems combining batteries with conventional engines may also offer practical solutions for marine applications where energy density remains a limitation.
Micro-CHP system
Abertax has developed a compact micro combined heat and power (micro-CHP) unit designed for domestic energy systems. The device integrates a small combustion engine, generator and battery storage. Key features include:
- 2 kW electrical output
- integrated battery storage
- heat recovery from engine and exhaust
- operation at 48 V DC
Waste heat from the engine is captured to heat water or buildings. When both electricity and thermal energy are utilised, total system efficiency can approach 90%.
The decision to limit the system to 48 volts was deliberate. Electrical systems above this voltage typically require certified technicians for maintenance. By remaining below that threshold, the micro-CHP unit can be serviced more easily and at lower cost.
Looking ahead
The battery industry is changing rapidly as electrification spreads across transportation, energy storage and industrial systems. For companies like Abertax, the challenge is to adapt while maintaining their core expertise.
From lead-acid monitoring systems to sodium-ion research and modular battery designs, the company continues to explore technologies that could shape the future of energy storage.
Standing beside the sculpture at the entrance of the factory, the message becomes clear. Innovation is not always about starting from scratch. Sometimes it begins with what already exists – and finding a better way to use it.
