The company aims to be a vertically integrated producer of HPA as it plans to feed its proposed HPA plant in Malaysia using its kaolin mine in Western Australia.
Last week, Altech received the official manufacturing licence from the Malaysia government for its proposed HPA plant.
HPA critical to the lithium-ion battery sector
HPA recently joined lithium, cobalt, nickel and copper as a recognised key input to lithium-ion batteries.
At the May 2018 Resource Stocks Sydney conference, CRU senior consultant Toby Green told delegates in his presentation on lithium-ion battery growth commodities: "HPA is a huge growth story, albeit one emerging off a low base in the form of the estimated US$1.1 billion HPA market.
“HPA ran a close second to lithium in terms of the projected scale of the impact of lithium-ion battery demand on an existing battery mineral commodity up to 2025, with a +60% growth forecast”.
Altech well positioned to meet the demand from lithium-ion battery industry
Altech managing director Iggy Tan said: “HPA demand growth in the LED sector has long been acknowledged and understood; it is now apparent that this growth will be complemented by stronger than forecast HPA demand growth from the lithium-ion battery industry, specifically from battery separator sheet manufacturers.
“Most battery separator sheet manufacturers are based in Japan, where our off-take partner Mitsubishi Corporation is based, or in South Korea.
“Altech, together with Mitsubishi is well positioned to meet this rapidly expanding demand sector for HPA.”
Tan added: “The timing for construction of Altech’s proposed HPA plant in Malaysia appears perfect, with two parallel streams of near-term HPA demand growth now apparent”.