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HPA coating technology spurs Altech Chemicals’ (ASX:ATC) action-packed September quarter

Highlights

  • Altech Chemicals continues to advance on its R&D to develop HPA coating technology in lithium batteries.
  • A Pre-Feasibility Study for a 10,000 tpa battery material coating plant in Germany progressing well.
  • Altech held a meeting with potential investors for the plant in Germany during the quarter.
  • During the quarter, the Company discovered the presence of halloysite at the Kerrigan kaolin deposit.
  • Altech remained focused on sourcing finances for its processing plant at Johor, Malaysia.

Altech Chemicals Limited (ASX:ATC|FRA:A3Y) is making the headlines lately for all good reasons. The Company’s revolutionary battery coating technology has the potential to improve the performance of Li-battery and enhance its life. Altech released its quarterly activities report today highlighting its progress on its high purity alumina (HPA) Project.

Related read: Altech Chemicals (ASX: ATC) – set to disrupt the Lithium-ion battery market with its HPA coating technology

Altech has established an R&D lab in Perth to develop battery material coating technology with HPA. The initial results are groundbreaking and demonstrated the potential to improve the chargeability, performance, life and safety of lithium battery. The Coating technology will allow to combine metallurgical-grade silicon with the anode material of the battery.

Altech Chemicals

Image source: Company update, 29 October 2021

Tesla, the world’s leading EV manufacturer, emphasised the requirement to change the energy density of Li-batteries, keeping the cost low at its 2020 battery day event. The HPA coating technology has the potential to achieve the desired result by the inclusion of high-energy capacity metallurgical silicon.

10,000 tpa Battery Materials plant

Altech entered the German market by establishing an R&D lab and a proposal to build a 10,000 tpa capacity coating plant. Altech chose Saxony state for its German operations as it is the hub for leading German automobile companies.

Altech Chemicals

Image source: Company update, 29 October 2021

A Pre-feasibility study for the plant is progressing well and is on track. Work on getting the project green accreditation by the Centre of International Climate and Environment Research (CICERO) also started during the September quarter.

Altech also enjoys the support of the Saxony State government over the project. The Company is in talks with potential investors for the project and completed initial rounds of meetings during the last quarter.

Related read: How is Altech Chemicals Revolutionising the Lithium Battery Market?

Green Bonds in the final stage

Altech is in final stages of finalising the Investment Memorandum to raise US$144 million through the bond issue. The fund generated through bonds will be utilised for financing the HPA plant in Malaysia. The Green Bond structure has been refined to allow Australian investors to subscribe to the bonds in the Australian currency. Provisions are being made to trade the bonds on the Frankfurt Stock Exchange also.

The HPA project has been assessed as a ‘green’ project by CICERO. Thus, the Green Bonds are expected to receive a good response from the market. The project will have 49% less carbon footprint than traditional HPA projects. Altech has commenced the pre-marketing of the bonds. 

Altech Chemicals

Mr Iggy Tan presenting at Young Engineers Seminar at University of Western Australia (Image source: Company update, 29 October 2021)

Halloysite discovered at Kerrigan Kaolin deposit

During the quarter, Altech discovered the presence of halloysite at its Kerrigan kaolin deposit in WA. The discovery was made while processing drill samples from the air-core drilling program of 2020 over the licence area.

Halloysite is widely used in the ceramic industry for making porcelain and ceramic objects. Chemical properties of halloysite make it an ideal low-cost substitute for carbon nanotubes used in the specialised industry.

Altech is running more sample tests to determine the size of the deposit and the significance of initial results.

Related read: Altech Chemicals (ASX:ATC) adds new horizon to its WA kaolin deposit, discovers halloysite

Altech remains focused on HPA plant in Johor

The HPA plant in Johor remains on care and maintenance. Stage 1 and 2 construction work is complete and awaiting the completion of project finance to proceed further. Early works on the plant site significantly de-risks the construction start-up. The project is positioned for the recommencement of construction once financing is secured.

HPA plant

Proposed HPA plant (Image source: Company update, 14 May 2021)

Appointments

Altech announced the appointment of Mr Martin Stein as Chief Financial Officer (CFO). Mr Stein will join the office from 1 November 2021. He will be replacing Mr Shane Volk. Mr Volk will be joining a junior mining company as CEO after his seven-year association with Altech.

Disruptive battery coating technology has the potential to revolutionise the Li-battery market. The research work is going on well and bigger breakthroughs are expected from the initial results.

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