From Stock head yesterday
Fact – HPA can make batteries safer and better. Also fact – these ASX plays are into itMaterials used in the manufacturing of lithium-ion batteries that are found in electric vehicles or energy storage solutions are hot property on the ASX.
Lithium, nickel, cobalt and even manganese are all sought-after commodities and companies exploring for or producing them have drawn more than their fair share of attention.
But there’s one material, which despite seeing increased used in batteries (and in substantial quantities), is still relatively unknown.
High purity alumina – a very high purity (+99.99%) type of aluminium oxide that is often produced fromkaolin feedstock– is a high value critical mineral that is hardly unknown in the industrial sector given its use in creating synthetic sapphire crystals used in LED lights, semiconductors, watch faces and smartphones.
According to Business Research Insight, sales of ceramic (HPA) coated separators totalled about US$1.6bn in 2021 and are forecast to grow at a 25% compound annual growth rate to US$7.8bn by 2028.
This growth is rapid enough that some commentators have indicated that even if every planned HPA project comes online, there will not be enough supply to meet estimated demand over the next decade and beyond.
ASX high purity alumina plays
Given the growing demand for HPA, it is certainly worth taking a look at some of the company’s looking to advance their HPA projects.
The company is taking the fast track towards becoming a producer of high purity kaolin that is imminently suitable for processing into HPA.
Its Tampu deposit about 250km northeast of Perth, Western Australia, has a resource of 24.7Mt of bright white kaolinised granite though recent successful drilling has demonstrated that there is potential for major resource growth.
The company has also acquired a grain storage facility just 2.5km away that can be quickly repurposed to support planned mining operations and has secured required critical infrastructure.
What’s especially important for Corella is that the low level of iron impurities at Tampu positions it perfectly as a source of HPA feedstock.
An upgraded resource estimate is currently underway to underpin a Scoping Study that will include options for supply into traditional and HPA markets.
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