Altech Chemicals Limited ASX: ATC FRA:A3Y For personal use only Company Presentation Iggy Tan Managing Director
For personal use only 4,500 tpa High Purity Alumina Plant ● Sapphire substrates ● LED growing at 16% CAGR ● Massive electricity savings
For personal use only • Sapphire gemstone Purified alumina (Al 2 O 3 ) • 99.99% (4N) purity or greater • Smelter Grade Alumina (SGA) ~ 99.5% • What is HPA? Bayer Process uses sodium hydroxide (NaOH) Sodium impurity is a problem for sapphire • and lithium-ion batteries
For personal use only High price High Purity Smelter Grade High Purity High Purity for purity Alumina Alumina Alumina Alumina HPA 99.999% (5N) SGA 99.5% HPA 99.9% (3N) HPA 99.99% (4N) >US$50,000 per t US$400 per t US$6,000 per t US$20,000 per t US$9,000 per t US$40,000 per t Our Target Business
LEDs & LITHIUM-ION BATTERIES For personal use only LEDs Sapphire Wafer Sapphire Furnace (2,000 o C) Sapphire Crystal Boule LITHIUM ION Nano Powder Separator Coatings BATTERIES
LED Expansions For personal use only Xiamen Changelight Purchases AIXTRON MOGVD Technology to Expands ROY LED Production
For personal use only ● Sapphire substrates ● LED growing at 16% CAGR ● Massive electricity savings
LEDs & LITHIUM-ION BATTERIES For personal use only LEDs Sapphire Wafer Sapphire Furnace (2,000 o C) Sapphire Crystal Boule LITHIUM ION Nano Powder Separator Coatings BATTERIES
Battery Energy Density For personal use only 1000 500 Battery Cost (US$/kWh) (LHS) Battery Energy Density (Wh/l) Battery Energy Density (Wh/l) 800 400 Battery Cost (US$/kWh) 600 300 400 200 200 100 0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017e 2018e 2019e 2020e 2021e 2022e Battery costs are reducing due to increased energy density
Battery Energy Density vs Temp For personal use only 300 250 Specific Energy (Wh/kg) 200 150 100 Higher Operating Temperatures 50 0 LFP LMO LCO NMC NCA Cathode Evolution Cathode changes – higher operating temperatures
For personal use only Normal Polymer Separators Polypropylene (PP) 155 o C HPA <135 o C required Polyethylene (PE) 135 o C for higher Polypropylene (PP) 155 o C temps HPA layer >200 o C Polymer membrane HPA Coated Separators (HPACS)
For personal use only 60 W Scope Separator Sales 50 51% HPA % of W-Scope Sales 40 39% Coated 35% 34% 30 31% 30% Separators 20 10 13% 12% 0 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Japanese separator manufacturer reports 40% HPA coated separators 12% only 24 months ago
Capex Plans of Battery Manufacturers For personal use only Korea - 50-70 GWh by 2020 China 32 GWh by 2023 LG Chem Korea - 20 GWh by 2020 Japan - JV with Toyota 50x capacity by 2020 China - 50 GWh by 2020 Korea - 30 GWh by 2020 Sweden - Spending US$4 B to achieve 32 GWh
For personal use only Demand for HPA 30% CAGR demand growth • 272,000 tpa by 2028 • Source: CRU Global HPA Outlook 2019
For personal use only • CRU upgraded forecast to 272,000 tpa by 2028 30% CAGR demand growth 2028 • • Future LED market - will require higher quality HPA LIB separators demand 187,000 tpa by 2028 • CRU Latest LEDs demand forecast 85,000 tpa by 2028 • HPA Demand • Significant supply deficit forecast Forecast
For personal use only Supply Deficit Analysis 20,000 0 CRU warns -20,000 of significant -40,000 supply deficit -60,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Mid-term - Market balance Long-term - Supply gap HPA supply deficit about 20,000 tpa by 2021 • • Peaking in 2028 at 50,000 tpa New entrants 3-4 years behind •
Sapphire Glass Scratch Test For personal use only
For personal use only • HPA producers – Chemical companies China (3), Japan (2), South Africa (1) France (1) Sumitomo Chemicals (Japan) 3,020 Current HPA Others (15), 3,570 Sasol (South Africa) Huantou, 800 1,800 Producers Dailian Rall, 600 Nippon Light Metal, 1,100 Hebei Pengda (China) Baikowski (France) 3,000 1,200 Xuancheng Jing Rui Zibo Xinfumeng (China) (China) 1,200 2,500 Source: Technavio Research
Altech’s Differentiation For personal use only Current HPA Producers Alumina Alumina Aluminium Refinery Smelter Dissolution Bauxite Smelter Grade Alumina Aluminium Metal 99.99% (4N) 99.5% HPA ~US$3,000 per tonne ALTECH HPA PLANT One Single Process Step Kaolin 99.99% (4N) (aluminous clay) HPA
For personal use only • Very low iron (Fe) due to weathering • 12.7Mt JORC Mineral Resources^ (250 yrs) • Measured Resources 1.5Mt @ 30% Al 2 O 3 • Indicated Resources 3.3Mt @ 30% Al 2 O 3 • Inferred Resources 7.9Mt @ 29.1% Al 2 O 3 • Meckering, Western Australia (130 km east of Perth) Low-Impurity Bauxite Kaolin Feedstock Altech % Darling Kaolin * Range* Al 2 O 3 34.5 30.0 SiO 2 21.5 57.9 Fe 2 O 3 21.2 0.4 TiO 2 2.00 0.7 K 2 O 0.24 0.2 NaO 0.005 0.01 * Typical Mean Analysis ^ JORC (2012) Mineral Resources (refer ASX Announcement 11 October 2016); the Company is not aware of any new information or data that materially affects the information included in this announcement and confirms that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.
For personal use only Mining approval granted • Works approval granted • Meckering Simple free dig mining • Kaolin Deposit • Campaign mining, 2 months - 3 years feed in West Aust Then just sea container loading operation • Fremantle to Johor easy shipping •
For personal use only Chemical-zoned industrial park • 60% lower operating costs • HCl plant nearby • HPA Plant to • Services, natural gas, electricity, water be in Johor, Access to 17 th largest container port • Malaysia 5-10 year corporate tax free • • No radioactive waste – chemical park
HCl Plant For personal use only Leach & Neutralisation Fine Sand Kaolin Calcination Roasting & Calcination Kaolin Kaolin Receival Beneficiation HPA Finishing Plant Final Product Administration Control Room Lab TNB Main Substation Car Park Gatehouse Station Gat e
Altech’s Patented HPA Process For personal use only ROM Campaign Mining Sea Container To Fremantle MECKERING Shipping Sea Container Quartz Removal JOHOR Screening Drum Scrubber Quartz Oversize
Altech’s Patented HPA Process For personal use only Flash Dryer Hydrochloric Acid Cooler Filter Calciner Milling Screening Filter 700 C Acid Leach Meta Kaolin - Acid Leach Silica
Altech’s Patented HPA Process For personal use only HCl Gas Stage 1 Crystalisation AlCl 3 Purification Centrifuge Al Cl 3 Crystals HCl Gas HCl Gas water water Centrifuge Centrifuge Al Cl 3 Al Cl 3 Stage 3 Polishing Stage 2 Crystalisation Filter Crystalisation HCl Wash HCl Wash
Altech’s Patented HPA Process For personal use only Roasting & Final Product 99.99% Spray Cooler Jet Mill HPA Battery Grade Option Dryer Beads 1600 C Packaging Cooler Pelletiser Feed Tank Tunnel Kiln HCl Plant Quartz Oversize HCl Alpha Al 2 O 3 1250 C 700 C Screen HX Calciner Roaster Cooler Bead Mill Wash
Altech’s Patented HPA Process For personal use only ROM Campaign Mining Sea Container MECKERING To Fremantle Shipping Sea Container Meta Kaolin Flash JOHOR Dryer Hydrochloric Acid 700 C Cooler Filter Screening Calciner Milling HCl Gas Polishing Screening Filter Filter Drum Scrubber > 0.3mm Stage 1 Crystalisation Acid Leach Sales Limestone & Lime Neutralised 99.99% Spray Centrifuge Cooler Silica Residue Jet Mill HPA Battery Grade Option Dryer Beads 1600 C Neutralising Al Cl 3 Sales Tank Crystals Packaging Filter Cooler Pelletiser Feed Tank Tunnel Kiln HCl Plant Quartz Oversize HCl Gas HCl HCl water water Gas Alpha Al 2 O 3 Centrifuge Centrifuge 1250 C 700 C Screen HX Al Cl 3 Al Cl 3 Calciner Roaster Cooler Bead Mill Stage 3 Polishing Wash Stage 2 Crystalisation Filter Crystalisation HCl Wash HCl Wash
For personal use only Chemistry established in 1900s by Swiss • • US Govn’t & Alcoa developed further 1980’s No demand for HPA in 1980’s • Established New HPA growth demand (LEDs LIBs) • Proven • Altech applied open chemistry to Meckering Chemistry Very successful, disruptive, lowest cost • One patent granted, 8 pending •
For personal use only Competitors • 1. We own our feedstock 2. Main reactant HCl re-used Bottom 3. Plant in low cost country (Malaysia) Quartile for Op Costs Altech Source: Persistence Market Research “High Purity Alumina Market – Global Industry Analysis and Forecast 2016- 2024”
For personal use only Off-take sales agreement with Mitsubishi • First 10 years of HPA operations • Mitsubishi • Secures sales for HPA plant production Exclusive global distributor • 10 year Experienced with HPA • off-take • Strategic priority: lithium-ion batteries
For personal use only
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