Altech Chemicals receives invitation from Saxony government in Germany for construction of its next HPA plant in the state

Altech Chemicals Limited has announced that it has received an invitation from the state government of Saxony, Germany for the construction of its next high purity alumina (HPA) plant in the state in the industrial area of Schwarze Pumpe. As HPA is a critical component in the lithium-ion battery materials supply chain, an Altech HPA plant in Saxony would be perfectly positioned to cater to the region’s efforts to create a major electric vehicle battery industry.

The automobile industry is one of the key segments of Saxon industry, with production sites for Volkswagen, BMW, Porsche and Daimler. Saxony is a leading engineer training ground and has excellent research facilities.  The country also boasts the best road network and strong rail transport. Its ports are also well connected in international maritime trade.

Altech’s German advisers recently met with Minister-President of Saxony, Mr Michael Kretschmer to discuss the possibilities. Altech intends to undertake further evaluation of the funding potential from the government towards the HPA plant in eastern Germany.

While the Company remains focused on the close of funding and the construction of its Malaysian HPA plant, it is also looking at the opportunities that can come from a second HPA plant considering the deficit HPA market forecast for 2020.

It is noteworthy that CRU in its most recent HPA market outlook report identified a HPA 4N+ supply shortfall of approximately 20,000tpa in 2021. Altech is of the view that it is worth starting early stage planning for future HPA plants, now. Considering the invitation from Saxony and EU’s strategy to convert to electric vehicles, and to establish a fully integrated materials supply chain to support the transition, the Company is thinking of locating its next HPA plant in Europe.