Altech Chemicals Ltd (‘Altech Chemicals’ and ‘Company’) recently announced its preliminary feasibility study (PFS) for the Silumina AnodesTM battery anode materials project with outstanding financials, including a pre-tax net present value of USD507 million.
Altech Chemicals is a specialty EV battery materials technology company headquartered in Australia. The Company owns an extensive and high-technology research and development laboratory supporting the battery technology. Altech Chemicals recently cracked the silicon code and developed a battery that had 30% higher energy retention than conventional Li-ion batteries. The battery also included improved cyclability and battery life.
Altech Chemicals : Announcement of Silumina Anodes™
Altech Chemicals’ patented battery materials product is Silumina Anodes™. The product, a battery anode, is expected to provide a lithium-ion battery with a higher energy retention capacity by volume and weight compared to the graphite anodes currently used in the market.
The Company has undertaken extensive research and development in the Perth laboratory on high purity alumina coating technology for both silicon and graphite particles. These particles are typically used as anodes in lithium-ion batteries, which are found in all rechargeable devices, including mobile phones, toy cars, electric vehicles, solar batteries, and so forth.
Altech’s team undertook one year of work to crack the “silicon barrier,” resulting in an anode with higher battery energy retention capacity. While this breakthrough was announced in November 2021, the feasibility tests of the product were announced in April 2022.
Altech Chemicals – Feasibility test results for Silumina Anodes™
The highlights of the PFS are as follows:
- Silumina Anodes™ material would be a premium product compared to the graphite material currently used. The material is expected to act as a proxy for graphite. The global demand for graphite material is expected to grow at 18% and 1.7 million tonnes per annum.
- The breakthrough with Silumina Anodes™ is in line with the recent public statement of Tesla. The electric vehicle manufacturing giant said that they aim to increase the amount of silicon in their battery to improve energy density and life. Altech’s Silumina AnodesTM higher battery performance is in line with Tesla’s statement, and introduces the change in battery technology that Tesla is looking for.
Other announcements for Altech Chemicals
- Development of the plant
After the announcement of their proprietary product Silumina Anodes™, Altech Chemicals has projected a capital outlay of USD95 million for the development of a high capacity factory for the production. The Company estimates the net present value of the project to be USD507 million. Altech Chemicals has estimated an internal rate of return at 40%, with investment capital paid back in 3.1 years. The plant is expected to generate 10,000 tpa at a full rate of production which would bring revenue to the tune of USD 185 million per annum.
Managing Director, Iggy Tan stated “The feasibility study for the project has encouraged immediate progress. Altech has already purchased suitable land in Germany and will commence work immediately.”
Why should investors keep an eye on Altech?
- Altech has released outstanding PFS results for its Silumina Anodes™ plant in Saxony, Germany. The plant is estimated to generate an NPV of USD507M and generate net cash of USD63 million per annum from operations. The investment will be paid in full (estimated) in approximately 3.1 years.
- Altech is in the process of bringing its patented and proprietary product Silumina Anodes™ to the market, which has shown a battery energy retention capacity of 30% higher than standard graphite batteries used in lithium-ion batteries.
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