The high-purity aluminum oxide manufacturer Altech Chemicals, which is listed on the ASX, has received a commitment of 7.38 million EUR (approx. 12 million AUD) for the potential development of a high-purity aluminum oxide (“HPA”) from the Saxon state government in Germany. Plant in the eastern German state. This comes after the Perth-based company recently signed an option agreement to purchase around 10 hectares of commercial space in the Schwarze Pump industrial park in the Saxon municipality of Spreetal.
Altech representatives visited the site in August. This marked the beginning of a due diligence phase, which will be incorporated into a feasibility study on the profitability of the construction and operation of an HPA plant in the region.
In a letter of commitment to Altech, the Saxon government stated that synergy effects from an Altech plant were expected against the background of the presence of electric vehicle and battery manufacturers in the region.
Essentially, the grant means that an amount of AUD 12.2 million would be available if we found that building a second HPA facility in Germany is economically viable.
Altech … remains focused on finalizing and resuming funding for our first HPA facility in Johor, Malaysia. By evaluating this opportunity in Germany, we are responding quickly to Europe’s urge to bring its supply chains closer to home and to increase its independence for critical raw materials – such as those used in the manufacture of lithium-ion batteries.
The company has developed close relationships with Germany and has a German connection to the executive board and share register.
In addition, the company has a close relationship with Germany’s massive SMS engineering group and state-owned KfW IPEX-Bank, which is the senior lender for Altech’s proposed $ 280 million HPA plant in Johor Bahru, Malaysia Has provided a $ 190 million credit facility.
Altech has also selected Macquarie Bank as the preferred mezzanine lender for a credit facility of up to $ 90 million for the Malaysian project.
Altech has raised just under A $ 40 million over the past 24 months to fund the first and second phases of Johor Bahru’s development, both of which were completed by the end of fiscal year 2019-20.
The company hopes to have the proposed Johor Bahru processing facility operational by around 2023 and deliver the first product to customers.
The plant has a planned design throughput capacity of 4,500 tons of HPA per year.
HPA is a high-quality, high-margin product that is a key component in the manufacture of synthetic sapphire and, increasingly, in the manufacture of lithium-ion batteries.
Synthetic sapphire is used to make LED lights, semiconductor wafers for the electronics industry, and scratch-resistant sapphire glass for wristwatches, optical windows and smartphone components.
Lithium-ion battery manufacturers use HPA to coat the polymer anode / cathode separator sheets in batteries.
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