HPA from Kaolin in WA Massively undervalued...potential multi bagger!, page-13

Demand for HPA is skyrocketing and FYI is about to complete the BFS and pilot plant and shortly thereafter commence the build of the actual plant. FYI will be producing 4N and perhaps 5N before most other companies have  finalised their resource size!

Further the traditional suppliers of HPA are to a large part struggling and a lot of that has to do with how they make HPA often from bauxite which is costly and not environmentally friendly, the flowsheet is elongated and cumbersum, not like from our high grade massive resource of Kaolin!

This excerpt from an article in the last few days is very telling.


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Following completion of a more rigorous demand model, coupled with extensive market discussions, CRU has found the unconstrained demand forecast for 4N+ (99.99% or greater) HPA to be significantly stronger than initial estimates from 2018, where it was estimated at 92,900 tonnes (2025). In this recent market report, CRU estimates that 4N+ HPA could in theory grow at 30% p.a. from 19,000 tonnes (2018) to 272,000 tonnes (2028). However, more detailed examination shows that this growth will likely be constrained by supply limitations, and that such unconstrained demand growth would lead to a large-scale deficit that would consequently spike prices to untenable levels.

CRU estimates that HPA in powder form, used in lithium ion battery (LIB) separators, could reach 187,000 tonnes (2028), were sufficient supply made available. Meanwhile, HPA in the pellet/bead form used in light-emitting diode (LED) substrates could reach 85,000 tonnes (2028), and is expected to exhibit greater price inelasticity, since sapphire is by far the most widespread substrate material in the established solid-state lighting industry.
In explaining its 4N+ HPA market growth forecast, CRU asserts that:

• The demand for ceramic coated separators (CCS) in LIB applications is genuine and will rapidly proliferate, as more energy-dense batteries arrive to serve the surging electric vehicle (EV) market; and that
• Manufacturing trends in LED production – which itself has an excellent growth trend – have recently moved in favour of larger sapphire wafers: this will have profound (positive) consequences for the 4N+ HPA market, as the push for defect-free 6" and 8" wafers will drive demand for higher-purity feedstock.