- Altech Chemicals (ATC) is set to receive a €7.38 million (roughly A$12.1 million) grant from the Saxony State Government, Germany
- The grant offer was made through a commitment letter pledging support for a second high-purity alumina (HPA) plant in Germany
- The government grant follows a deal to buy a 10-hectare site within the Schwarze Pumpe Industrial Park in Saxony
- Altech has recently begun due diligence activities to determine the site’s viability as a second HPA plant in Germany
- If the site is deemed viable, Altech will have over A$12 million available for development
- Company shares are up 3.77 per cent and trading for 5.5 cents
Altech Chemicals (ATC) is set to receive a €7.38 million (roughly A$12.1 million) grant from the Saxony State Government, Germany.
The State Ministry for Economic, Labour and Transport in Saxony sent Altech a commitment letter regarding the grant support. This followed the signing of an option-to-purchase agreement by Altech’s German subsidiary, Altech Industries Germany Gmbh.
The agreement covered a 10-hectare industrial site in the Schwarze Pumpe Industrial Park in Saxony. Altech has been determining the site’s potential for a second high-purity alumina (HPA) plant to support the growing demand for lithium-ion batteries in Europe and the continent’s aim to keep supply chains close to home.
The commitment letter stated, “from an industrial policy point of view, Altech’s project is very much welcomed in the region, Lausitz.”
In August, Altech alternate director, Uwe Ahrens, and various Altech consultants visited the site and were joined by Saxony State Government officials, Spreetal Municipality officials and Industrial Park senior management.
Following the site visit, Altech began due diligence activities and a feasibility study process to determine the site’s viability as a second HPA plant in Germany.
“In essence, the grant means that if we were to determine that it was commercially viable to construct a second HPA plant in Germany, an amount of roughly A$12.2 million would be available,” Managing Director Iggy Tan said.
“We see this as a potential opportunity that cannot be ignored, especially given Altech’s strong established links to Germany – both on our share register, our board, and the relationships we have built with SMS group and German Government owned KfW IPEX-Bank,” Iggy added.
Company shares are up 3.77 per cent and trading for 5.5 cents at 11:19 am AEDT.