Altech Chemicals Ltd (ASX:ATC) Finalises Design of 4,500tpa HPA plant


(MENAFN- ABN Newswire) Perth, Oct 20, 2017 AEST (ABN Newswire) - Altech Chemicals Limited (Altech/the Company) () () is pleased to advise that it has now finalised the design for the upgrade in capacity of its proposed Malaysian high purity alumina (HPA) plant from 4,000 to 4,500 tonnes per annum.

Highlights

- Upgraded 4,500tpa capacity HPA plant design now completed

- Plant process flow sheet optimised and finalised

- Flexible finishing line capable of producing sapphire grade and battery grade HPA

Working in conjunction with its appointed German engineering, procurement and construction (EPC) contractor SMS group GmbH (SMS), Altech has now completed optimisation of the plant process flow sheet (see Figure 1 in link below). The majority of the changes compared to the previous flow sheet have impacted the HPA finishing section of the plant. This section now incorporates a flexible finished product line capable of producing HPA for both the synthetic sapphire industry (up to 4,500tpa of high density pellets) and HPA for the lithium-ion battery industry (up to 1,500tpa of powder at sub-micron particle size). Maximum plant output is designed at 4,500tpa HPA, with flexibility to balance the finished product mix.

The flexible product finishing line is designed to initially grind all HPA to an average particle size of less than 1 micron by wet milling using bead mills. Upon the milled HPA achieving the designated particle size range it will be dried via a conventional spray drier. The finely ground, dried HPA will then be aggregated in beads for heat treatment in a tunnel kiln; the finished product being HPA beads for use in the synthetic sapphire industry. Alternatively, the finely ground HPA will be fed to a de-agglomeration unit (microniser) to produce fine HPA powder for use in the lithium-ion battery industry. Both products will be bagged via an automated bagging machine. See Figure 1 (in link below) for the final flow diagram.

Sapphire Grade HPA

Synthetic sapphire is used in the manufacture of substrates for LED lights; semiconductor wafers used in the electronics industries; and scratch-resistant glass used for wristwatch faces, optical windows and components for smartphones and other handheld devices. Global HPA demand is approximately 25,315tpa (2016) and is growing at a compound annual growth rate (CAGR) of approximately 16.7%, with the HPA market size worth about USD$1 Billion in 2016 - according to Persistence Market Research.

Altech's sapphire grade HPA product will be 4N (99.99%) high purity alumina (Al2O3) in the form of a highdensity HPA bead of around 3-4mm in size. The higher bulk density of HPA beads (versus HPA in powder form) is preferred by synthetic sapphire manufacturers as it maximises the amount of alumina that can be placed into the furnaces and kilns used in the production of synthetic sapphire. The target loose bulk density of Altech's high-density HPA beads will be around 2.2t/m3.

Lithium-ion Battery Grade HPA

Consumption of HPA in non-tradition applications such as the lithium-ion battery sector is forecast to experience significant grown. Electric vehicle manufacturers are increasingly demanding lithium-ion batteries with cathode and anode electrode separator sheets coated with 99.99% (4N) HPA for fire resistance. The particle size of HPA used as the coating for this application is ultra-fine, less than 1 micron. Lithium-ion batteries using separator sheets coated with HPA consume between 40-120g of HPA per kilowatt-hour (kWh). With a forecast rapid expansion of the lithium-ion battery market driven by the demand from electric vehicles and green energy power storage (solar and wind), HPA consumption in the lithium-ion battery sector alone is forecast by Altech to rise from around 1,000tpa in 2016 to 15,000tpa by 2025.

Over the last twelve months Altech has been developing a HPA product to meet the requirements of the lithium-ion battery industry. The finishing line of Altech's proposed HPA plant is designed to produce the ultra-fine HPA used in the lithium-ion battery sector; this product may also be sold in slurry form (drums).

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About Altech Chemicals Ltd

() () is aiming to become one of the world's leading suppliers of 99.99% (4N) high purity alumina (HPA) (Al2O3).

HPA is a high-value, high margin and highly demanded product as it is the critical ingredient required for the production of synthetic sapphire. Synthetic sapphire is used in the manufacture of substrates for LED lights, semiconductor wafers used in the electronics industry, and scratch-resistant sapphire glass used for wristwatch faces, optical windows and smartphone components. There is no substitute for HPA in the manufacture of synthetic sapphire.

Global HPA demand is approximately 25,315tpa (2016) and demand is growing at a compound annual growth rate (CAGR) of 16.7% (2016-2024), primarily driven by the growth in worldwide adoption of LEDs. As an energy efficient, longer lasting and lower operating cost form of lighting, LED lighting is replacing the traditional incandescent bulbs.


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