FYI Resources (ASX:FYI) upbeat as HPA added to Australia’s Critical Minerals list

Highlights 

• The Australian Federal Government has included high purity alumina (HPA) to the National Critical Minerals list.
• Critical minerals are metals and non-metals that are considered crucial for the economic welfare of major and emerging economies of the world.
• The addition of HPA to Australia’s critical minerals list reflects the expanding significance of inputs of minerals in modern high-tech applications.

Western Australia-based resource player, FYI Resources Limited (ASX:FYI; OTCQX:FYIRF; FSE:SDL), hailed the decision of the Australian Federal Government to include high purity alumina (HPA) to the priority list of critical minerals.

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In a positive market update, FYI stated that the Federal Government had included high purity alumina (HPA) to the National Critical Minerals list.

Buoyed by the announcement, shares of FYI jumped 6% during an intraday trading session to exchange hands at AU$0.265 per share.

Expanding significance of critical metals

Critical minerals are metals and non-metals that are considered crucial for the economic welfare of major and emerging economies of the world. At the same time, their supplies may be at risk due to various factors, including geopolitical issues, geological scarcity, trade policy and several other factors.

Demand for critical metals has been increasing rapidly relative to traditional commodities due to their extensive demand across various sectors, including automotive, defense, aerospace, renewable energy and other high-tech applications.

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Source: FYI Presentation (17 December 2021)

The addition of HPA to Australia’s critical minerals list reflects the expanding significance of inputs of minerals in modern high-tech applications and reduced carbon future.

Like other critical metals, HPA also has wide applicability due to its unique chemistry and physical characteristics. HPA is used as a base in the manufacturing of phosphors, sapphire glass, and substrates for applications such as light-emitting diodes (LEDs). Moreover, the crucial metal is also used in the ceramic coating of separator membrane in high-energy-density batteries, including Lithium-ion cells used in electric vehicles (EV).

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Furthermore, FYI’s HPA project also aligns strongly with worldwide growing policy changes that require higher standards of input materials and increased environmental and social governance of battery minerals supply chains. 

An initiative to seek access to secure and reliable supplies of critical minerals

While the worldwide demand for critical metals has been increasing, the global supplies are still uncertain due to various types of risks involved in critical minerals projects. The need for robust supply chains has been highlighted by the COVID-19 pandemic. Coexistent with this, countries across the globe are increasingly seeking assess to secure and reliable supplies of critical minerals.

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Australia is one of the leading suppliers of critical minerals in the world, the current strategy of the Federal Government would set out a long-term plan to leverage growing demand and establish a thriving and durable Australian critical minerals sector on the world map.