Altech provides update on transition by lithium-ion battery manufactures to (HPA) coated battery separators

Altech Chemicals Limited provides an update on the transition by lithium-ion battery manufactures to high purity alumina (HPA) coated battery separator sheets. This is apparent from recently announced quarterly sales data by Japanese separator sheet manufacturer W-Scope (6619 JT) and from the company recent attendance at the Battery Japan 2019 conference, held in Tokyo.

W-Scope reported in its Q4 2018 results that as a proportion of total sales, HPA coated separator sheets jumped to 51%, compared to an average sales volume of 34% in the preceding four quarters. W-Scope announced annual sales revenue guidance of ¥17.5bn for 2019, which compares to actual annual sales revenue of ¥8.7bn for 2018. For 2020, the company expects a further increase in sales revenue, primarily on the back of capital expenditure for four additional HPA coated separator sheet production lines.

W-Scope HPA Coated Separator Sheet Sales Volumes (as % of total sales)

“The transition by lithium-ion battery manufactures to HPA coated separators is primarily a function of advances in battery anode and cathode technology.

As a result, battery energy storage capacity is increasing and battery operating temperature during charge and discharge is higher – to the point where traditional non-coated polymer separator sheets are reaching the limit of safe application, hence the transition to HPA coated separators which tolerate higher operating temperatures.

The transition to HPA coated separators has been anticipated for some time, however the quarter 4, 2018 W-Scope sales data indicates that the transition may be progressing at a rate faster that previously envisaged,” Altech said in its press release.

At Battery Japan 2019, there was feedback from battery manufactures that HPA is now being incorporated within lithium-ion battery cathode’s as it aids with battery temperature tolerance and reduces dendrite (crystalline mass) growth.

The global transition to electric vehicles now seems unstoppable. Toyota is aiming to achieve annual sales of 5.5 million electrically driven vehicles by 2030. General Motors plans to launch more than 20 electric vehicle models by 2023 and Tesla is expecting between 700,000 and 1,000,000 of its electric vehicles to be sold in 2019. BMW and VW are expected to launch over 100 new electric vehicle models over the coming 6 years.

The demand for HPA, which is currently estimated at 1.5kg – 1.7kg per electric vehicle, should be positively impacted by the migration to electric vehicles, underpinning the forecast rise in global HPA demand from current levels of 26,000tpa to a conservative demand estimate of in excess of 60,000tpa by 2025, Altech said.