FYI Resources Limited (ASX:FYI) in fine fettle to cash in on HPA market boom

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FYI Resources Limited (ASX:FYI) in fine fettle to cash in on HPA market boom

 FYI Resources Limited (ASX:FYI) in fine fettle to cash in on HPA market boom
Image source: Company Presentation (2 June 2021)

Summary

  • FYI Resources Limited (ASX:FYI) recently delivered a presentation at the Benchmark Minerals EV-Fest webinar.
  • The Company is progressing to become a fully integrated, high-quality, ultra-pure alumina (HPA) producer amid rising electric vehicle demand.
  • The growth of the EV industry is well backed by strong investment in battery capacity in the US and European Union.

The high purity alumina (HPA) producer, FYI Resources Limited (ASX:FYI), recently delivered a presentation on electric vehicles (EVs) and lithium-ion battery supply chain at the Benchmark Minerals EV-Fest Zoom webinar held on 2 June 2021.

The program was intended to provide a forum for expert seminars and conversations on defining subjects for the electric vehicles and lithium-ion battery supply chain. The event was exclusive for benchmark members with a scheduled duration of 30+ hours. The Company’s Managing Director, Roland Hill, presented an intriguing presentation at the event.

FYI is advancing to become a fully integrated, high-quality, ultra-pure alumina (HPA) producer to tap the surging demand of HPA in the growing electric vehicle and LED market.

Good Read: FYI Resources (ASX:FYI) Progressing On Integrated Ethical Production with Tier 1 Jurisdiction Infrastructure

The Company's advanced HPA process flowsheet and technologies coupled with extensive development have resulted in a robust project strategy that has been de-risked in advance of production.

Promising HPA demand outlook

The burgeoning demand for HPA is supporting the growth of electric vehicles. The demand for HPA is primarily driven by higher energy density requirements in LIB cells, EV adoption rates, the cost and value effectiveness of the separator and significantly, the improvement in safety.

HPA is an important component in the manufacturing of lithium-ion batteries (LIB) that provides high energy density to LIB cells used to power EVs. FYI stated that the market size of LIB battery separators is anticipated to reach US$11.3 billion by the year 2026, relative to US$6.2 billion in 2020. Besides, the demand for ceramic coated separators used in LIBs is also expected to grow at a rate of nearly 18.7% between 2020 and 2028.

The higher demand outlook for HPA in EV batteries places the Company in an ideal position to commercialise its innovative and fully integrated HPA and become a leading participant in the growing EV market.

Also Read: FYI Resources (ASX:FYI) Tapping Potential Opportunities in the HPA Market

Strong investment in battery capacity

The robust growth in battery capacity is powered by an unprecedented investment in the European market. European Union (EU) is one of the fastest-growing EV markets in the globe. As per FYI’s latest presentation, around 24 Giga factories have been announced in the EU with a forecasted total annual production capacity of 600GWH, which can fuel 9 - 10 million EVs annually.

Do Not Miss: FYI Resources (ASX:FYI) Shares Soar 5.6% on Key Results from European Product Trials

Besides EU, the US has also planned to bolster its battery capacity under the guidance of President Joe Biden. In January 2021, the President ordered to electrify the entire government vehicle fleet.

In February, the US took a significant decision to rejoin the Paris Agreement on climate change. Thereafter, Biden unveiled over US$2.0 trillion infrastructure plan that incorporated an inclusion of  500,000 EV charging stations. Recently, in May, Biden also looked for EV inputs from Australia, Canada, and Brazil.

Interestingly, FYI offers ideal exposure and leverage to the EV markets via its ultra-high quality and purity HPA. The Company’s HPA product quality and purity is verified through multiple HPA market participant validation and request for qualification engagement.

Must Read: FYI Resources (ASX:FYI) Joint HPA Pilot Plant Trial Samples Achieve 99.9986% Al2O3 Purity

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