- FYI Resources has received an R&D tax incentive rebate payment of AU$1.18 million.
- The Company will use the incentive funds to develop its High Purity Alumina (HPA) project.
- Demand for HPA has been increasing due to its vast utilisation in burgeoning electric vehicle manufacturing along with LED and sapphire glass products.
Western Australia-based FYI Resources Limited (ASX:FYI, OTC:FYIRF) has received an R&D tax incentive rebate payment of AU$1.18 million for the financial year 2020-21 under the Australian Federal Government initiative.
Following the announcement, shares of FYI climbed as much as 5% to trade at AU$0.32 on Friday.
The rebate received by the company is a form of tax incentive offered by the Australian government to promote R&D activities in the country. The Company will use the incentive funds to develop its High Purity Alumina (HPA) project.
Related Article: FYI Resources (ASX:FYI) embarks on extended HPA pilot plant trial
High-quality and high purity alumina for high-tech market
FYI is actively progressing on its fully integrated process design to produce high purity alumina. FYI and Alcoa of Australia jointly pursue the initiative. FYI aspires to position itself as one of the leading producer's high purity alumina in the rapidly growing high-tech product market.
Demand for HPA has been increasing significantly in various high-tech products primarily due to its unique chemical properties and characteristics.
Demand for HPA has been increasing due to its vast utilisation in burgeoning electric vehicle manufacturing along with LED and sapphire glass products.
The current R&D Tax Incentive rebate is an initiative taken by the Australian Federal Government. Both, AusIndustry and the Australian Taxation Office are managing the initiative jointly. Under the scheme, eligible companies are eligible to receive cash refunds of up to 43.5% of all eligible expenses incurred on the research and development project.
FYI plans to continue to direct funds towards the ongoing development of low-risk, fully integrated, low-cost production of HPA products.
The eligibility to receive an R&D Tax Incentive rebate include the conduction of technical work on advancing potential customer-requested product finish specifications and zero-carbon studies. Apart from these, incentive rebate is also applicable to those who add value to specialty downstream battery applications like HPA coatings for cathode and anode coating architecture.