Altech Chemicals is tantalisingly close to building a high-purity alumina, or “HPA”-coating pilot plant in the German state of Saxony after signing a final construction contract with developer Kuttner GmbH. The company’s glazing process uses silicone particles and graphite to treat anode materials, boosting the endurance of lithium-ion batteries.
Perth-based Altech has coined the product “Silumina Anodes” and says the system could deliver battery anode materials that have a 30 per cent higher retention capacity over non-coated items.
Plans for the construction of the plant look to be moving at speed, with the company saying it had already started the procurement of long-lead items.
The pilot plant could produce up to 120kg of Silumina Anodes battery coating material per day. Altech will be aiming to supply several European-based battery manufacturers and auto makers.
The pilot plant will operate from Dock 3, a leased warehouse next to Altech's land in the Schwarze Pumpe Industrial Park in Saxony, Germany.
The 14-acre site, on Germany's eastern border, is shaping up to be a major automotive development hub, with Volkswagen, BMW, Porsche, Daimler and even Tesla setting up shop in recent times. Importantly, the zone is also home to a number of high-profile lithium-ion battery companies, that could open more doors for the HPA developer.
The company appears well stocked to bankroll the operation. Its March quarterly report showed a strong cash position of $11.571 million. The new plant is estimated to cost about $7.177 million.
Altech recently completed a preliminary feasibility study, or “PFS” for the HPA coating plant, suggesting a capital investment of US$95 million could deliver an estimated pre-tax net present value of US$507 million.
The study estimated that once in operation, the project could generate net cash flows of US$63 million per year and given the operation’s healthy 40 per cent internal rate of return, could be paid off in just over three years.
At full capacity, the figure could rise to about US$185 million per annum.
Altech’s proposed pilot plant is strategically placed among the leaders of Europe's lithium-ion battery segment. Given the growing adoption of electric vehicles, it’s hard to imagine a problem with demand for the facilities product once it’s in full swing.
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By Matt Birney
