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ALTECH CHEMICALS LTD - Corporate Spotlight

Altech Chemicals Limited (ATC) is aiming to become one of the world's leading suppliers... Altech Chemicals Limited (ATC) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3), leading the battery-minerals revolution.More

Corporate Spotlight

Altech Chemicals Limited (ATC) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3), leading the battery-minerals revolution.
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ATC making strides in the EV Battery industry

ATC FINDS HALLOYSITE AT KERRIGAN

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Altech Chemicals (ASX:ATC) finds halloysite at Kerrigan

Materials

ASX:ATC
Altech Chemicals (ASX:ATC) - Managing Director, Iggy Tan
Managing Director, Iggy Tan
Source: Altech Chemicals

  • Altech Chemicals (ATC) has found halloysite at its Kerrigan kaolin deposit in WA, opening up a potential new premium sales platform for the business
  • ATC explains halloysite nanotubes attract a significant premium above the average kaolin price and are suited to a range of applications
  • The company says it made the discovery after halloysite was observed during the recent processing of samples from its 2020 aircore drilling campaign
  • Altech will now carry out further test work on 31 samples to confirm and determine the significance of the initial halloysite results

Read the Full Article on The Market Herald here

ATC FURTHER PROGRESSES GERMAN HPA PLANT

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Altech Chemicals (ASX:ATC) further progresses German HPA plant PFS

Materials

ASX:ATC
Altech Chemicals (ASX:ATC) - Managing Director, Iggy Tan - The Market Herald
Managing Director, Iggy Tan
Source: Finance News Network

  • Altech Chemicals (ATC) says the Pre-Feasibility Study (PFS) for its battery materials high-purity alumina (HPA) coating plant is progressing well
  • ATC advises the process designs have been completed for the 10,000-tonne-per-annum plant, as well as the environmental due diligence and a permitting plan
  • The company says the pricing of equipment and construction packages is also underway, with the plant due to sit on a 14-hectare site in Germany
  • The demand for graphite anode materials is expected to grow rapidly in the coming years as electric vehicles become more popular

Altech Chemicals (ATC) has advanced the Pre-Feasibility Study (PFS) for its battery materials high-purity alumina (HPA) coating plant in Germany.


The HPA plant is designed to coat an initial 10,000 tonnes of anode graphite per year using Altech's alumina coating technology.


In an update released to the market on Monday, the company said the PFS for the wider project was progressing well.


ATC specified that the study was now focussed on the engineering design phase for the HPA coating plant.


The materials stock said it's begun reaching out to suppliers for equipment packages, while discussions over potential contractors for major works were underway.


The process designs for ATC's plant, which will likely be constructed on a 14-hectare site it has the option of purchasing in Saxony, have been completed.


Under the completed process, ATC said it should only take four steps to complete the coating process.


Meanwhile, along with the process design being finalised, Altech said the environmental due diligence and a permitting plan for the plant were close to being completed.


Commenting on the significance of the wider project, Altech said studies showed graphite demand in the lithium-ion battery industry was due to grow as electric vehicles rose in popularity.


Read the Full Article on The Market Herald here

ATC ESTABLISHES OWN RESEARCH AND DEV LAB

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Altech Chemicals (ASX:ATC) establishes own research and development lab

Materials

ASX:ATC
Altech Chemicals (ASX:ATC) - Managing Director, Iggy Tan - The Market Herald
Managing Director, Iggy Tan
Source: The Market Herald

  • Altech Chemicals (ATC) establishes a research and development lab in Perth, Western Australia
  • Altech is focused on developing its battery materials coating technology which was previously tested at Curtin University but there were availability issues
  • Having its own facility allows the company to conduct a full range of research, development and test work to refine its technology
  • The lab has been in the commissioning phase since May and is close to finalisation

Altech Chemicals (ATC) has established a research and development lab in Perth, Western Australia.


The lab was previously occupied by an environmental consulting business but has since been converted and customised for Altech to advance the development of its battery materials coating technology.


Prior to this, Altech relied on Curtin University to conduct the required work which faced availability issues.


Having its own facility, allows the company to conduct a full range of research, development and test work to refine its graphite and silicon particle battery materials high-purity alumina (HPA) coating technology.


Street view of the lab. Source: Altech Chemicals.


The first samples of battery materials have now arrived at the Subiaco-based lab and the company will start undertaking various rounds of development tests.


Another round of half-cell battery performance tests is also planned which will further test the performance of graphite and silicon particles that have been coated using Altech's alumina technology.


The newly established lab has been in the commissioning phase since May and is close to finalisation.


Read the Full Article on The Market Herald here

ATC SUBMITS ALUMNIA COATING PATENT

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Altech Chemicals (ASX:ATC) submits alumina coating patent

Materials

ASX:ATC
Altech Chemicals (ASX:ATC) - Managing Director, Iggy Tan - The Market Herald
Managing Director, Iggy Tan
Source: Finance News Network

  • Altech Chemicals (ATC) has submitted a patent with IP Australia for its alumina coating technology
  • According to ATC, the technology can improve the life of lithium-ion batteries and their performance
  • Last year, Altech began an independent verification phase for its method coating graphite particles with alumina
  • These particles were observed as thin and continuous with a regular coating of alumina — a result the company called encouraging

Altech Chemicals (ATC) has submitted a patent with IP Australia for its alumina coating technology.


According to ATC, the technology can extend the life of lithium-ion batteries and their performance.


Currently, graphite particles used in lithium-ion battery anodes are uncoated, but manufacturers are now looking to coat these particles with very thin layers of alumina.


When the alumina coating layer is applied to anode materials, such as graphite and silicon, it serves as an artificial solid electrolyte interface (SEI).


This is expected to reduce lithium-ion losses during each charge and discharge cycle of rechargeable lithium-ion batteries, which are used in electric vehicles.


Last year, Altech began an independent verification phase for its method coating graphite particles with alumina.


In the first phase of coating trials, the company applied the layers on graphite anode particles. These particles were observed with a thin and continuous coating of alumina.


A successful first round of battery testing of Altech's alumina coated graphite has also been completed.


For this test, two batches of battery electrodes were produced, one batch used non-coated standard anode grade graphite particles, while the other batch was coated with HPA using Altechs’s technology.


100 cycles of cell charge and discharge was completed and the company called the results positive and encouraging.


"In a lithium-ion battery, lithium-ion losses initially present as inactive layers that form during the very first battery charge cycle, the losses then compound with each subsequent battery usage cycle," the company explained.


Interestingly, typically, around 8-10 per cent of lithium ions are lost during the very first battery charge cycle.


Tests have shown that alumina-coated graphite particles have the potential to reduce first cycle capacity loss and therefore improve battery life and performance.


Read the Full Article on The Market Herald here

ATC PROGRESSES PFS STUDY FOR HPA PLANT

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Altech Chemicals (ASX:ATC) progresses PFS study for HPA plant

Materials

ASX:ATC


  • Altech Chemicals (ATC) has provided an update on its pre-feasibility study (PFS) to construct a high-purity alumina (HPA) plant in Germany
  • The HPA plant is designed to coat an initial 10,000 tonnes of anode graphite per year using Altech's alumina coating technology
  • So far, Altech has identified potential utilities and material suppliers as well as shortlisting suppliers for electrical infrastructure, piping materials and construction services
  • It also secured an office at the Schwarze Pumpe Industrial Park and rented a research and development space adjacent to the proposed plant site


Altech Chemicals (ATC) has provided an update on its pre-feasibility study (PFS) to construct a high-purity alumina (HPA) plant in Germany.


Altech's 75 per cent-owned subsidiary, Altech Industries Germany (AIG), is leading the PFS, which began in late March.


The study is being undertaken for the construction of a high-purity alumina (HPA) plant in Germany. The HPA plant is designed to coat an initial 10,000 tonnes of anode graphite per year using Altech's alumina coating technology.


The PFS will assume the use of 100 per cent renewable power from the local grid with some minor onsite solar generation for buildings to achieve green project status. Once the study is finished, the project may be assessed for green accreditation by the Centre of International Climate and Environmental Research (CICERO).


Activities completed so far include a due diligence review of environmental and site conditions which confirmed the Schwarze Pumpe site as suitable to host the proposed plant. The environmental consultant who conducted the review outlined the requirements for plant permitting and environmental regulations.


Altech has identified potential suppliers for utilities and materials as well as input pricing for these items. It has also shortlisted potential suppliers for electrical infrastructure, piping materials and construction services and commissioned them to provide proposals.


"We are very pleased with the support and encouragement for the study and AIG’s proposed activities that has been received from the Schwarze Pumpe Industrial Park management and the local municipality of Spreetal," Managing Director Iggy Tan said.


AIG recently secured an onsite office space at the Schwarze Pumpe Industrial Park for three years. It also rented two bays within a 12-bay warehouse that adjoins the office. This space will be used to conduct various battery materials research and development (R&D) activities.


The company believes the office and R&D space will be sufficient for feasibility, testing and engineering work, as well as a future potential plant for coating battery materials.

Proposed office space and R&D site. Source: Altech Chemicals


In addition to the PFS, Altech has revealed an option agreement secured mid-last year has been extended.


The option agreement is to acquire the 14-hectare site where the HPA plant will supposedly be developed on. AIG had an initial 12-month term to exercise its purchase option but has chosen to extend this by 12 months.


Read the Full Article on The Market Herald here

ATC SIGNS DEAL WITH GERMAN PRODUCER

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Altech Chemicals (ASX:ATC) signs collaboration deal with German graphite producer

Materials

ASX:ATC
Altech Chemicals (ASX:ATC) - Managing Director, Iggy Tan - The Market Herald
Managing Director, Iggy Tan
Source: The Market Herald

  • Altech Chemicals (ATC) and its subsidiary have entered into a collaboration agreement with German graphite producer SGL Carbon
  • Together the companies will create and develop high-purity alumina (HPA) coated graphite materials for use by the lithium-ion battery industry
  • ATC brings its successful alumina coating technology to the partnership, which it believes could ultimately improve lithium-ion battery performance
  • Meanwhile, SGL Carbon will supply its various battery graphite powders for testing, which will be coated using Altech's HPA
  • Under the deal, both ATC and SGL will fund the test work and retain their respective intellectual property from the testing

Altech Chemicals (ATC) and its subsidiary, Altech Industries Germany, have entered into a collaboration agreement with German graphite producer SGL Carbon.


Under the agreement, the companies will create and develop high purity alumina (HPA) coated graphite materials for use in the lithium-ion battery industry.


SGL Carbon is described as a world leader in the development and production of carbon-based solutions, with reported sales of €919 million (around A$1.43 billion) in 2020.


While ATC will bring its successful alumina coating technology to the partnership, which it believes could ultimately improve lithium-ion battery performance.


Testing to date has shown the battery performance for coated graphite anodes compares favourably to the non-coated anodes, a result which Altech labelled "positive".


ATC's subsidiary, Altech Industries Germany, is also planning to build a battery materials HPA coating plant in the European country, with a PFS underway.


Meanwhile, SGL Carbon will supply its various battery graphite powders for testing.


"I believe that Altech’s coating technology can be successfully employed to coat SGL Carbon’s various battery graphite powders with a uniform nano-layer of alumina," Altech Managing Director Iggy Tan explained.


"Under this collaboration agreement, Altech and SGL Carbon will test the application of Altech’s technology to coat SGL Carbon’s specifically designed graphite particles with HPA," he added.


"Both companies will fund the test work and retain their respective intellectual property," Iggy said.


Along with the collaboration agreement, Altech and SGL Carbon have also renewed their memorandum of understanding for engineering support.


Read the Full Article on The Market Herald here

ATC SIGN WITH LEADING SILICON PRODUCER

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Altech Chemicals (ASX:ATC) signs collaboration agreement with Silicon Ferrosolar

Materials

ASX:ATC    MCAP $44.50M 
Managing Director, Iggy Tan
Source: The Market Herald

  • Altech Chemicals (ATC) has signed a collaboration agreement with leading silicon producer Silicon Ferrosolar
  • The companies will work together to develop a high capacity, long cycle life silicon active material for use in lithium-ion batteries 
  • Altech is currently developing a coating technology which improves the performance, longevity and safety of batteries
  • The agreement will run for one year and if any party chooses to terminate 30 days notice must be given
  • Altech also launched a $14.5 million entitlement offer
  • Shareholders will receive two new shares for every five held, as well as one free attaching option for every two new shares subscribed for
  • The money will be used for Altech's European initiative, payments for stage two work, development activities, working capital, and corporate costs

Altech Chemicals (ASX:ATC) has signed a collaboration agreement with leading silicon producer Silicon Ferrosolar. 


This agreement will see both companies work together to develop a high capacity, long cycle life silicon active material for lithium-ion (li-ion) batteries. 


Silicon Ferrosolar has the technology to produce high purity silicon and is developing tailor-made silicon powders for li-ion battery anodes. 


Under the agreement, Altech could potentially use its high purity alumina (HPA) and coating technology to coat particles designed by Silicon Ferrosolar. 


Altech is currently developing Anode Grade HPA and coating technology to apply to particles used in li-ion batteries. This coating improves the performance, longevity and safety of batteries. 


Additionally, Altech will fund the testwork and supply the coating technology. 


The agreement will run for one year and if any party chooses to terminate, 30 days notice must be given. 


Entitlement offer 

Altech also launched a $14.5 million partially underwritten non-renounceable pro-rata entitlement offer. 


Shareholders will receive two new shares for every five held as well as one free attaching option for every two new shares subscribed for. 


The shares will be priced at 4 cents each, which represents an 18 per cent discount to Altech's closing price on November 5 of 4.9 cents, and a 15 per cent discount to the five-day volume-weighted average price. 


Further, the options are exercisable at 8 cents with expiry on May 31, 2022. 


Altech's major shareholders, Deutsche Balaton and Delphi and Melewar, have agreed to subscribe to 52 per cent of the offer, $7.6 million.

 

The money will be used for Altech's European initiative, as well as to cover payments for stage two work, development activities, working capital, and corporate costs.


Read the full article on The Market Herald

HPA RESEARCHING

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GERMAN RESEARCH CONFIRMS 4N HPA CRITICAL FOR LITHIUM-ION BATTERY SAFETY & PERFORMANCE

ASX Announcement 26 May 2020 


Highlights 

  • Test work shows sodium contamination from low grade alumina and boehmite in lithium-ion battery applications 
  • Up to 80-fold increase of sodium levels 
  • Minimum sodium leaching for 4N alumina (99.99%) 
  • Serious battery safety risks, performance and durability problems 
  • Minimum quality industry standards for alumina coated separators called for


Altech Chemicals Limited (Altech/the Company) (ASX: ATC) (FRA: A3Y) is pleased to provide the results from high purity alumina (HPA) research activities recently completed by the internationally renowned FraunhoferGesellschaft research organisation (refer ASX Announcement 25 March 2020). 


The Fraunhofer Institute for Ceramic Technologies and Systems (IKTS) of Dresden, Germany specialises in lithium-ion battery research. The Altech commissioned test work focussed on assessing how readily impurities (predominantly sodium) leach from lower quality alumina (sub-4N) and boehmite into battery electrolyte solution, a cause of lithium-ion battery thermal runaway, inefficiency and life cycle reduction.


As the lithium-ion battery industry rapidly expands in response to increased demand for electric vehicle (EV) and portable electronic device batteries, some in the industry have turned to cheaper low-grade alumina and boehmite as a coating material for battery separators. This substitution is away from high quality 4N alumina (99.99%) as a standard separator sheet coating. Results from the Fraunhofer test work point to a previously unrecognised contamination risk and heightened safety hazard – sodium leaching – from lower grade alumina or boehmite.


A lithium-ion battery stores then releases power by lithium ions moving between the battery cathode and anode, representing the charge and visa-versa discharge cycles. Separating the cathode and anode within the battery is a thin polymer sheet through which lithium ions pass via a liquid electrolyte – a separator sheet (see Figure 1). The composition of these polymer separator sheets has evolved over time in parallel with increases in battery energy density and faster charging / discharging requirements. Now separator sheets are mostly coated with thin layers of alumina powder to maintain separator integrity under the ever-increasing operating temperatures of modern high-energy lithium-ion batteries (see Figure 2). 



The Fraunhofer test work exposed various commercial grade alumina / boehmite powders known to have been adopted for battery separator coatings, to lithium battery electrolyte solution under controlled battery type conditions. What was observed was severe sodium leaching and contamination of the organic electrolyte solution from the lower grade alumina and boehmite powders. The IKTS reported that the sodium content in the electrolyte rose from an initially acceptable 0.5 ppm, up to potentially catastrophic level of 40 ppm (an 80-fold increase) for the test using low quality 3N alumina (99.9%). Similar leaching and electrolyte contamination were observed for the boehmite test (99.7% purity), where the sodium level in the electrolyte jumped 20-fold. For the 4N alumina (99.99%), almost zero leaching of sodium was observed.


Figure 3 illustrates the discolouration of the organic electrolyte solution that resulted from the leaching of contaminates in the Fraunhofer test work.



Click here to view the full announcement

HPA PLANT SITE CONSTRUCTION

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JOHOR HPA PLANT SITE CONSTRUCTION ACTIVITIES RECOMMENCE 

ASX Announcement 3 June 2020 


Highlights 

  • Stage 2 HPA plant construction work has recommenced 
  • COVID-19 Standard Operating Procedures implemented 
  • Electrical substation construction expected to be completed during July 2020


Altech Chemicals Limited (Altech/the Company) (ASX: ATC) (FRA: A3Y) is pleased to provide an update on the status of activities at the Company’s high purity alumina (HPA) site in Johor Bahru, Malaysia, where construction activities have now recommenced.


In response to the global outbreak of the COVID-19 pandemic, the Malaysian government imposed a Movement Control Order (MCO) effective 18 March 2020, for an initial period of one month. The MCO resulted in the closure of all non-essential government and private business premises, and consequently the suspension of all construction works and closure of Altech’s HPA plant site at Tanjung Langsat. Subsequently, the MCO was extended on four occasions and is currently in effect until 9 June 2020.


However, the Malaysian government recently announced a relaxation of MCO restrictions under a revised Conditional Movement Control Order (CMCO). The CMCO provides for the recommencement of business activities, such as construction, but only if pre-approval is obtained from the Ministry of International Trade and Industry (MITI). A key condition of the recommencement of activities is a requirement to implement Standard Operating Procedures that follow the Malaysian Ministry of Health guidelines for COVID-19.


Altech has now received the MITI approval for business recommencement and has implemented the required COVID-19 related workplace standards for personal and workplace hygiene, including individual screening (COVID-19 testing) and social distancing. COVID-19 testing for all personal was completed last week, and final site inspection by the Construction Industry Development Board for verification of implementation of the new procedures has been conducted; this has allowed for the recommencement of construction activities at site. 



Prior to the suspension of construction activities in March 2020, work on the electrical substation was nearing completion, with only cosmetic architectural detailing and internal fit out of some mechanical and electrical systems remaining. It is expected that these outstanding works will now be completed by July 2020, followed by rectification of any punch list items and a final handover inspection of the substation to Altech.


Click here to view the full announcement 

THE FUTURE OF ELECTRIC VEHICLES IN EU

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ALTECH SUCCESSFUL IN PHASE 1 TEST

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Altech Chemicals (ASX:ATC) wraps up phase one battery testing


  • Altech Chemicals (ATC) has concluded the first phase of battery performance testing on graphite particles using its proprietary coating technology
  • The tests follow Altech's previous successful demonstrations of its alumina coating technology, which coats graphite particles within lithium-ion batteries with a nanolayer of high purity alumina (HPA)
  • Initial testing sought to compare battery electrodes using standard anode-grade graphite particles with Altech's anode-grade HPA-coated graphite particles
  • Altech affirmed results for the coated graphite anodes compared to the non-coated anodes were positive and encouraging but did not give any explicit findings 
  • In terms of next steps, additional battery runs of battery charge and discharge are will be undertaken to demonstrate "repeatability and consistency"




Altech Chemicals (ATC) has concluded the first phase of battery performance testing on graphite particles using its proprietary coating technology.

The testing comes after Altech's previous demonstrations of its alumina coating technology, which coats graphite particles within lithium-ion batteries with a nanolayer of high purity alumina (HPA).

The company commenced the testing in late January.

In a statement regarding the outcome of the studies, Altech said the coated graphite's performance was "encouraging and meets expectations" and flagged there would be further test runs to demonstrate repeatability.

The first testing phase consisted of 100 cycle battery tests of cell charge and discharge, comparing a batch of battery electrodes using non-coated standard anode grade graphite particles as the control group and a separate batch containing anode grade graphite particles coated with HPA.

Altech didn't reveal any explicit details regarding the results of the trial, but affirmed results for the coated graphite anodes compared to the non-coated anodes were positive.

In terms of next steps, additional battery runs of battery charge and discharge are set to be undertaken to demonstrate "repeatability and consistency."

More broadly, the battery testwork forms part of the company’s strategy to focus on tailoring its HPA into specialised products within the lithium-ion battery industry.

Altech’s General Manager Operations and Chief Scientist, Jingyuan Liu, was encouraged by the initial phase of results.

"We now have to optimise the testing conditions and conduct additional tests to demonstrate repeatability and consistency. The performance of the alumina coated graphite is meeting our expectations so far," he commented.


See Full Article Here. 

ATC COATS SILICON PARTICLES WITH ALUMINA

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  • Altech Chemicals (ATC) has demonstrated its alumina nano-layer coating technology can coat silicon particles that are used in lithium-ion battery anodes
  • The high-purity alumina producer has already shown its technology can coat graphite, but coating silicon has been a major breakthrough as it has proven to be an industry-wide difficulty
  • Significantly, multi-billion-dollar electric vehicle (EV) manufacturer Tesla recently announced its plan to increase the amount of silicon in its batteries to improve energy density and battery life
  • This places Altech and its technology at the forefront of coating lithium-ion battery anode materials for EV manufacturers


Altech Chemicals (ATC) has made a significant breakthrough with its coating technology on silicon particles.


The high-purity alumina producer has successfully demonstrated its alumina nano-layer coating technology can be used to coat silicon particles.


Like graphite particles, silicon particles are typically used in lithium-ion battery anodes. However, silicon has 10 times the theoretical energy capacity compared to graphite.


This achievement follows Altech successfully showing its technology can be used to coat graphite particles. This breakthrough was announced in December last year and meant that graphite particles, which are generally uncoated, could increase battery energy retention, life and performance, if they are coated. 


But what makes today's announcement exciting is U.S. electric vehicle (EV) manufacturer Tesla recently shedding light on its plans to increase the amount of silicon in its batteries to improve energy density and battery life. 


Unfortunately, the nano-coating of alumina onto lithium-ion battery anode materials such as silicon has been difficult for the industry to achieve, as silicon has a number of capacity and expansion issues which have prevented it from widespread adoption. 


Altech's process involved adjusting its technology by depositing a "uniform and consistent" layer of alumina on the outer edge of the silicon particle to encapsulate it, in order to achieve the outcome it wanted.


"We are very encouraged by the excellent coating results achieved from the application of our technology, it has the potential to significantly increase the use of silicon in lithium-ion battery anode and consequently the potential to increase battery energy density, overall performance and longevity," Altech General Manager of Operations and Chief Scientist Dr Jingyuan Liu said.


Altech's next step will be to further optimise the coating process to ensure it can be reliably utilised to coat lithium-ion battery anode materials.


See Full Article Here. 

VIDEO & MEDIA

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Altech Chemicals (ASX:ATC) making strides in the EV Battery industry



Altech Chemicals signs collaboration deal with German graphite producer



Altech Chemicals Updated Corporate Video - March 



Altech chemicals Iggy Tan talks about the company's $14.5 million Underwritten Entitlement Offer with The Market Herald Dealroom, November 2020


ATC offered $12.1M Grant from Saxony State Govt. - The Market Herald Live, November 2020



Investor Updates with Altech Chemicals MD, Iggy Tan - September 2020



Investor Updates with Altech Chemicals MD, Iggy Tan - Updates to the HPA Project, Green Acredditation & Independent German Research on HPA and Batteries - 10/06/20




Interview with Iggy Tan - New World Metals Conference


ABOUT US

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Altech Chemicals Limited (Altech/the Company) is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (Al2O3) through the construction and operation of a 4,500tpa high purity alumina (HPA) processing plant at Johor, Malaysia.  Feedstock for the plant will be sourced from the Company’s 100%-owned kaolin deposit at Meckering, Western Australia and shipped to Malaysia.


HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. Increasingly HPA is used by lithium-ion battery manufacturers as the coating on the battery’s separator, which improves performance, longevity and safety of the battery. With global HPA demand approximately 19,000t (2018), it is estimated that this demand will grow at a compound annual growth rate (CAGR) of 30% (2018-2028); by 2028 HPA market demand is forecast to be approximately 272,000t, driven by the increasing adoption of LEDs worldwide as well as the demand for HPA by lithium-ion battery manufacturers to serve the surging electric vehicle market.  


German engineering firm SMS group GmbH (SMS) is the appointed EPC contractor for construction of Altech’s Malaysian HPA plant. SMS has provided a USD280 million fixed price turnkey contract and has proposed clear and concise guarantees to Altech for plant throughput and completion. Altech has executed an off take sales arrangement with Mitsubishi Corporation’s Australian subsidiary, Mitsubishi Australia Ltd (Mitsubishi) covering the first 10-years of HPA production from the plant.


Conservative (bank case) cash flow modelling of the project shows a pre-tax net present value of USD505.6million at a discount rate of 7.5%. The Project generates annual average net free cash of ~USD76 million at full production (allowing for sustaining capital and before debt servicing and tax), with an attractive margin on HPA sales of ~63%.


The Company has been successful in securing senior project debt finance of USD190 million from German government owned KfW IPEX-Bank as senior lender. Altech has also mandated Macquarie Bank (Macquarie) as the preferred mezzanine lender for the project. The indicative and non-binding mezzanine debt term sheet (progressing through due diligence) is for a facility amount of up to USD90 million. To maintain project momentum during the period leading up to financial close, Altech has raised ~A$39 million in the last 24 months to fund Stage 1 and 2 of the plant’s construction;  Stage 1 construction commenced in February 2019 with Stage 2 now underway.


Altech recently announced the sale of an option to Frankfurt stock exchange listed Youbisheng Green Paper AG (since renamed Altech Advanced Materials AG (AAM)), whereby AAM can acquire up to a 49% interest in Altech’s HPA project for USD100 million. AAM has commenced the process of securing the funds to enable it to exercise its option, which once complete would be the catalyst for project financial close.  


VISIT WEBSITE: https://www.altechchemicals.com/

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