Demand for high purity alumina (HPA) a specialised product used in lithium-ion batteries, LED lights, and more is growing at a rapid rate.<\/p>\n
When it comes to lithium-ion batteries, HPA is currently used as the coating on the separator between the anode and cathode.<\/p>\n
The HPA coated separators improve battery chargeability (charging and discharging rates), performance (power density), safety and overall service and durability.<\/p>\n
This LIB battery separator market valued at US$US6.2 billion in 2020 is expected to reach $US11.3 billion by 2026.<\/p>\n
But thats not all. HPAs battery applications could grow significantly beyond this.<\/p>\n
FYI Resources (ASX:FYI) calls HPA the hallelujah battery material with applications in the separator and anode and increasing potential candidate in cathode development.<\/p>\n
The whole battery, basically.<\/p>\n
FYI recently inked a deal with advanced battery graphite stock EcoGraf (ASX:EGR) to develop additional uses for FYIs HPA product.<\/p>\n
Investors are also watching closely for an update on an MoU between FYI and global aluminium giant Alcoa, where commercial terms are being finalised for a full joint venture operation.<\/p>\n
Stockhead chats with FYI managing director Roly Hill about EcoGraf, HPA demand, and that all important deal with Alcoa.<\/p>\n
In simple terms it is a joint venture between two battery focussed commodity players, looking at doing something completely different, Hill says.<\/p>\n
[This JV] is a very elegant way of adding a little bit of value to the downstream side of what FYI and EcoGraf are doing individually.<\/p>\n
For us, it is all about expanding HPAs applications in the battery.<\/p>\n
HPA is currently used as the coating on the separator between the anode and cathode.<\/p>\n
But it is looking like the utility of HPA is increasing. Now it looks like it [could be used] in the anode, and the cathode as well.<\/p>\n
The obvious benefits from the customer perspective are safety, performance, and possibly cost reduction, and life extension of the battery.<\/p>\n
Pretty exciting stuff, and the key thing for us is the interest [we are getting] from some of the larger battery groups.<\/p>\n
It just a matter of us adding a bit more value and cracking the code a little, to see where it can lead.<\/p>\n
We would use Benchmark Mineral Intelligence as our guidance on that, Hill says.<\/p>\n
They are suggesting that the anode growth graphite and the HPA could be +700% by 2025 from where it currently sits.<\/p>\n
The HPA market, where it currently sits, has a standing rate of 17% to 18% year-on-year growth through battery applications and the more traditional markets LEDs, sapphire glass, those sorts of things. Big numbers.<\/p>\n
Potential additional uses of HPA in the battery [mentioned above] are not included in all those numbers.<\/p>\n<\/p>\n
We had to defer the signing of the term sheets with Alcoa by a month, Hill says.<\/p>\n
That is because, out of courtesy, we introduced this [deal with EcoGraf] to Alcoa, along with several other initiatives that we wanted to pursue.<\/p>\n
They very much liked that, and the other things that we are wanting to do. We had to defer everything just so they could get involved.<\/p>\n
It was originally outside the scope; now it is inside the scope.<\/p>\n<\/p>\n
No more than me, I can tell you, Hill says.<\/p>\n
[But] both companies dont come this far time, money, and effort for it not to succeed.<\/p>\n<\/p>\n
We cant say signed sealed and delivered just yet, but its very close to the line. We are pretty much aligned on all the major terms, Hill says.<\/p>\n
They are very bullish on the business, and the sector.<\/p>\n
They have done their homework on us, and the flow sheet. They are prepared to back it by putting skin in the game.<\/p>\n
I think the combination of their balance sheet and operational experience plus FYIs agility it will be strong and solid partnership.<\/p>\n<\/p>\n
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FYI Resources Roly Hill on HPA the hallelujah battery material and that Alcoa deal - Stockhead<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Demand for high purity alumina (HPA) a specialised product used in lithium-ion batteries, LED lights, and more is growing at a rapid rate. Continue reading