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Altech Chemicals eyes growing demand for high purity alumina from lithium-ion battery sector

The company is aiming to construct a high purity alumina (HPA) plant in Malaysia.
lithium-ion battery
HPA has been recognised as a key input to lithium-ion batteries

Altech Chemicals Ltd (ASX:ATC) is forecasting a faster than expected migration by lithium-ion battery manufacturers to the use of high purity alumina (HPA) coated battery separators.

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.

READ: Altech Chemicals receives manufacturing licence from Malaysian government

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.”

READ: Altech Chemicals receives US$120 million debt term sheet

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”.

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