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03 OCTOBER 2018 AL CIRCLE

Altech presents potential for HPA in the Lithium-ion battery sector in BATTERY OSAKA exhibition

EDITED BY : BEETHIKA BISWAS 2MINS READ

Altech Chemicals Limited recently participated in BATTERY OSAKA, a three-day international rechargeable battery exhibition held in Osaka, Japan from 26 to 28 September 2018. The company provided an update on the recent developments and the outlook for high purity alumina (HPA) demand in the lithium-ion battery sector.  

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BATTERY OSAKA is one of two international rechargeable battery exhibitions held in Japan each year, and is a significant event for the lithium-ion battery industry. The exhibition, now in its 5th year, attracts representatives from major lithium-ion battery manufacturers, materials suppliers and equipment suppliers that are mostly located in Japan, South Korea and China.

Altech presented its HPA project and marketing plan in an exhibition booth in collaboration with Mitsubishi Corporation (Mitsubishi), Altech’s exclusive HPA offtake partner.

According to the Mitsubishi representative, in charge of the booth, several Japanese and South Korean buyers at the exhibition confirmed that the prevailing market price for the highest consistency and quality 4N HPA (99.99 is around US$40,000 per tonne.

Altech already invested US$27,000 per tonne in its definitive feasibility study (DFS) financial model and bank financial model. As previously reported, at the current 4N HPA price of US$40,000 per tonne, the Company’s HPA project would report an IRR of about 33% and generate EBITDA of about US$133 million per annum at name plate production of 4,500 tonne per year.

Altech managing director, Mr Iggy Tan said “a key take away from the Battery Osaka exhibition is that the HPA market appears to be evolving in line with forecasts from groups such as CRU and Persistence Market Research and if anything perhaps a little stronger than forecast – this is positive for Altech. HPA is a speciality high quality material, which attracts premium pricing because it is critical to the manufacture of high quality lithium-ion batteries – such as are used in electric vehicles.”

“Our main target market has always been Japan, South Korea and Taiwan. It is apparent that HPA pricing continues to be strong and consistent in these markets,” he concluded.


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EDITED BY : BEETHIKA BISWAS 2MINS READ

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