Calcium-antimony batteries are looking more suitable for grid networks than lithium-ion
Two weeks ago we said that the best news for the market would be evidence of a recession starting to bite. That is exactly what happened on Monday evening in the USA, causing the gold price to rally back to US$1,700/oz and the Dow to jump 2.66%. We had another good day of rises on Tuesday and the Australian interest rate rise was only 0.25%.
The stress that drove prices lower the week before has run its course. We then saw the strong rally and the subsequent slow down at the end of the week. Many share prices had surged higher, but not enough to breach downtrends, so this means we are still trying to form a base around these levels. Looking beyond the immediate economic turmoil, this week we have taken a closer look at the role antimony is playing in the next generation of large capacity stationary batteries, the type that are linked into the grid to provide the reliability that solar and wind power cannot.
Tesla-style lithium models are the default battery at present, but these are not without their issues e.g. look at the fire in the Victoria facility(1). Vanadium Redox batteries are gaining more attention, but there is a new type coming out of the USA that could better both of these types of batteries - calciumantimony batteries. (1) Two Tesla Megapacks were engulfed in flames when a fire broke out during initial testing at the Victorian Big Battery site in Moorabool, near Geelong, on July 30.
Ambri Batteries will boost demand for antimony The Massachusetts-based USA company, Ambri, has developed a liquid metal battery comprised of a calcium alloy anode, a molten salt electrolyte and a cathode comprised of solid particles of antimony. Last year it raised US$144m, with Bill Gates being one of the funders.
The antimony-based battery has an expected life span twice that of lithium batteries, experiencing minimal capacity loss over a 20 year life. This is a grid-scale storage system for solar and wind energy that, according to Ambri, is “the battery that will change the world”. Key points that it emphasises are;
• high energy capacity, frequent cycling, long life and high efficiency
• high temperature chemistry, working at 5000C, generating its own heat source
• zero maintenance • container-size units that can operate in parallel
• electrode materials that cost ⅓ of those in NMC lithiumion cells
• manufacturing costs of only ⅓ to ½ of lithium-ion cells
• no risk of combustion - not explosive, combustive or temperature sensitive
• no level of overcharging, over-discharging, short circuiting or temperature has caused any safety concerns
The active materials in Ambri’s cells;
• reversibly alloy and de-alloy while charging and discharging.
• The electrolyte is thermodynamically stable with the electrodes, avoiding unwanted side reactions such as film-formation that can degrade the performance of other cell chemistries. Furthermore,
• the negative electrode is fully consumed when discharged, and then is reformed on every cycle, resulting in a highly repeatable process with no memory effect.
• With these unique operating characteristics, Ambri’s liquid metal battery technology avoids common degradation mechanism
How Nagambie fits into the picture - high grades
There are a number of companies that have reported antimony (in stibnite) grades of 1-2% Sb. At this level the antimony is a useful by-product, especially giving the high antimony prices being experienced today. Adding the goldand the stibnite together can give an impressive AuEq grade.
Nagambie seems to stand out amongst these companies with much higher stibnite grades - up to 9.2% Sb in places. While we are waiting on further assays, visual inspection of the core suggests that the high grades will continue. The Company is optimistic that typical mine grades could be in the range of 5-10% Sb, which would make it one of the highest grade antimony orebodies in the world.
As such, it is very well positioned to feed into the strong demand the we can see coming from the calcium-antimony battery developments over the next few years. Given that 85% of antimony supply comes from China, Russia and Tajikistan, the prospects of a reliable supplier from the most geopolitically reliable country that Australia appears to be, will be of great interest to US and European industry and the battery developers. Nagambie reports its intercepts in AuEq numbers as most investors understand gold much better than antimony, but we thought it worthwhile focusing on the actual antimony grades in this Weekly, as it fits well with the battery narrative.
Nagambie undertaking a small raising
Yesterday Nagambie Resources (NAG) went into a trading halt to raise a small amount of $1m, in order to keep the drilling rig operating at its high-grade gold/antimony project at its 100%-owned Nagambie Mine in Victoria. Far East Capital is managing the placement.
Regular readers will have seen our commentaries in recent months concerning Nagambie so you will be aware of my enthusiasm for this unique company with a granted mining licence in Victoria.
You may have also seen that I joined the board last week, with a view to assisting the company as it seeks to develop Victoria’s next underground high-grade gold mine (plus high-grade antimony). As mentioned above, in considering the merits of the Company, it is important to also focus on the antimony.
While antimony has its traditional uses that include steel hardening, ordnance, fire retardancy, semiconductors etc etc, there is a significant new source of demand emerging - liquid metal batteries.
If you like to participate in the placement, and you are a s708 qualified investor, please contact me on [email protected]
