- Altech has inked two MOUs with Europe based graphite and silicon suppliers.
- The MOUs pave the way for the parties to work together for the future supply of battery materials to Altech’s Germany-based plant.
- The signing of leading European suppliers will ensure minimum transport emissions attributed to feedstock shipments.
Altech Chemicals Limited (ASX:ATC|FRA:A3Y) has executed two Memorandum of Understanding (MOU) with two European suppliers of battery-grade anode materials. The MOUs will see Altech and the suppliers work together for the supply of lithium-ion battery grade anode materials to Altech’s Germany-based battery material plant.
Altech’s German subsidiary Altech Industries Germany GmbH (AIG) is working on a proposed battery material plant in the industrial area of Saxony, Germany. AIG is currently conducting a preliminary feasibility study (PFS) for the plant. The nameplate capacity of the plant is planned to be around 10,000tpa.
What do the two MOUs propose?
Image source: Company update, 29 December 2021
To meet their graphite needs, AIG and Altech have signed an MOU with SGL Carbon GmbH (SGL). SGL is one of the leading suppliers of graphite in Europe, and this move supports Altech’s development of high purity alumina coated graphite materials for lithium-ion batteries.
In addition, the non-binding MoU also captures the potential future relationship whereby SGL would supply uncoated synthetic graphite anode material to an AIG battery materials plant in Saxony, Germany.
SGL is a global leader in the production of carbon-based solutions. The Company reported sales worth 919 million Euros in 2020.
Altech will take into account the volume and price data from the MOU into the PFS study of the proposed plant.
The second MOU has been executed with Ferroglobe Innovative S.L (Ferrogloble) for silicon. The Company, Ferroglobe, is one of the leading suppliers of high purity metallurgical silicon to the European market. Ferroglobe has a proven track record of creating new solutions and applications using state-of-the-art technology to drive innovation. The Company has the ability to develop and supply silicon powders, which are used in the coating of graphite anodes in lithium-ion batteries.
Altech has used the silicon supplied by Ferroglobe in its R&D work at its Perth laboratory.
The MOUs align with Altech’s plan to minimise carbon footprint
Altech has recently been awarded a ‘Medium Green’ rating by Norway-based CICERO. In its recommendation, CICERO has highlighted the importance of establishing a sustainable supply chain system to minimise the carbon footprint.
The MOUs with SGL and Ferroglobe will play a key role in developing a robust supply chain system. The companies will not only supply high-quality feedstocks suitable for battery materials but will also help in reducing the overall impact on the environment.
SGL and Ferroglobe follow stringent European environmental regulations in their respective production plants. The production facilities use green electricity for their production units, reducing their carbon emission levels significantly.
Altech believes that partnering with European suppliers for feedstocks will reduce the future supply chain risks more effectively than partnering with non-European suppliers.