- Altech Chemicals has received an invitation from the state government of Germany to consider the construction of a second high purity alumina plant in the state
- A second plant will be well positioned to support the region’s push to create a major electric vehicle battery industry
- Altech’s focus remains on the funding and construction of its first plant in Malaysia
Altech Chemicals has received an invitation letter from the state government of Saxony, Germany to consider the construction of a second high purity alumina (HPA) plant in the state.
The letter outlines that Altech should consider locating its next HPA plant in the industrial area of Schwarze Pumpe, which is located 100 kilometres northeast of Dresden, Saxony.
As HPA is recognised as a critical component in the lithium-ion battery materials supply chain, an Altech HPA plant in Saxony will be well positioned to support the region’s push to create a major electric vehicle (EV) battery industry.
Saxony is located in the east of Germany and borders the Czech Republic and Poland.
Altech’s German advisers recently met with the Minister-President of Saxony, Mr Michael Kretschmer to discuss the invitation.
Based on these discussions, Altech intends to undertake further evaluations which will include research on various government grants that it intends to use for further exploration.
Whilst Altech remains focused on the close of funding and the construction of its Malaysian HPA plant, it also recognises the forecasted significant shortage of HPA supply beginning in 2020.
Specifically, in CRU Consulting’s most recent HPA market outlook report, it identified a HPA 4N+ supply shortfall of approximately 20,000tpa in 2021 which would increase to 50,000tpa by 2028.
Altech recognises Saxony would be well positioned to support Europe’s push to create a major EV battery industry and associated materials supply chain.
Strict European Union (EU) 2020 carbon dioxide emission standards are paving the way for the rapid dispersion of internal combustion engine vehicles with EVs.
To meet the standards, European automotive manufacturers have announced plans for new EV model releases.
A range of companies have also committed to constructing or expanding battery cell plants in the EU.
Altech shares are up 5.88 per cent and trading for 13.5 cents apiece at 12:09 pm AEST. Its market cap is $94.37 million.