Outstanding PFS for Silumina Anodes Project
Perth, April 20, 2022 AEST (ABN Newswire) - Altech Chemicals Ltd (
ASX:ATC) (A3Y:FRA) is pleased to announce the outstanding results from a Preliminary Feasibility Study (PFS) for the development of a 10,000tpa silicon/graphite alumina coating plant, in Saxony, Germany.
The plant would be constructed by Altech Industries Germany GmbH (AIG), (ownership: 75% Altech, 25% Frankfurt stock exchange listed Altech Advanced Materials AG (AAM)), and would produce high capacity silicon/graphite battery anode materials "Silumina AnodesTM" under exclusive license from Altech. Silumina AnodesTM products are targeted to supply the burgeoning European electric vehicle market.
Highlights
- Highly positive preliminary feasibility study for 10,000tpa Silumina AnodesTM project
- Low capital cost (US$95 million) with outstanding economics
- Pre-tax Net Present Value (NPV8) of US$507 million
- Attractive Internal Rate of Return (IRR) of 40%
- Site in Saxony, Germany already purchased
- Green accredited project using renewable energy
- European high quality graphite and silicon supply
- Pilot plant engineering for product qualification underway
- NDA executed with two German automakers and one European battery maker
With a capital investment of US$95 million, the Company estimates a project net present value of US$507 million (NPV8), with net cash of US$63 million per annum generated from operations. The internal rate of return is estimated at 40%, with investment capital paid back in approximately 3.1 years. Total annual revenue at the 10,000tpa full rate of production is estimated US$185 million per annum.
Managing Director, Mr Iggy Tan, stated "Whilst Altech's top priority continues to be financing its Johor HPA project, the Silumina AnodesTM project represents an exciting downstream opportunity to utilise its HPA coating technology in silicon/graphite battery materials. We are pleased and excited about the results of the 10,000tpa Silumina AnodesTM PFS. Due to the attractive economics of the study, a decision has been made by the AIG board to immediately progress to a definitive feasibility study (DFS) for the project. AIG has already purchased land in Germany suitable for the project, and the plan is for the AIG team in Saxony to immediately commence DFS work. We believe that the production of Silumina AnodesTM materials could be a game changing technology for the lithium-ion battery industry".
Tesla, a global leader in the electric vehicle and lithium-ion battery industry, has declared that the required step change to increase lithium-ion battery energy density and reduce costs is to introduce silicon in battery anodes, as silicon has ~ten times the energy retention capacity compared to graphite. Silicon metal has been identified as the most promising anode material for the next generation of lithium-ion batteries.
However, until now, silicon was unable to be used in commercial lithium-ion batteries due to two critical drawbacks. Firstly, silicon particles expand by up to 300% in volume during battery charge, causing particle swelling, fracturing and ultimately battery failure. The second challenge is that silicon deactivates a high percentage of the lithium ions in a battery. Lithium ions are rendered inactive by the silicon, immediately reducing battery performance and life. Industry has been in a race to crack the silicon barrier.
Through in-house research and development, Altech announced late last year that it has cracked the "silicon code" and successfully achieved 30% higher energy retention in a lithium-ion battery, with improved cyclability and battery life. Higher density batteries result in smaller, lighter batteries and substantially less greenhouse gases, and are destined for the EV market. To achieve its breakthrough, Altech successfully combined silicon particles that had been treated with its innovative and patented alumina coating technology, with alumina coated battery grade graphite, producing the Silumina AnodesTM product. So far, the major drawbacks outlined above for using silicon in lithium-ion battery anodes, have been substantially overcome with Altech's Silumina AnodesTM product.
The European graphite and silicon feedstock supply partners for AIG's plant in Saxony will be SGL Carbon GmbH (SGL) and Ferroglobe Innovation S.L. (Ferroglobe), respectively. The project has already received green accreditation from the independent Norwegian Centre of International Climate and Environmental Research (CICERO). To support the development, AIG has commenced construction of a pilot plant in Germany, at a location adjacent to the proposed site of 10,000tpa plant. Product from the pilot plant will be provided to potential buyers, such as automakers, to fast-track the Silumina AnodesTM product qualification process. AIG already has non-disclosure agreements (NDAs) in place with two German automakers, as well as with a European based lithium-ion battery manufacturing company.
*To view full details of the PFS, please visit:
https://abnnewswire.net/lnk/ZS2WJ18N
About Altech Batteries Ltd
Altech Batteries Limited (ASX:ATC) (FRA:A3Y) is a specialty battery technology company that has a joint venture agreement with world leading German battery institute Fraunhofer IKTS ("Fraunhofer") to commercialise the revolutionary CERENERGY(R) Sodium Alumina Solid State (SAS) Battery. CERENERGY(R) batteries are the game-changing alternative to lithium-ion batteries. CERENERGY(R) batteries are fire and explosion-proof; have a life span of more than 15 years and operate in extreme cold and desert climates. The battery technology uses table salt and is lithium-free; cobalt-free; graphite-free; and copper-free, eliminating exposure to critical metal price rises and supply chain concerns.
The joint venture is commercialising its CERENERGY(R) battery, with plans to construct a 100MWh production facility on Altech's land in Saxony, Germany. The facility intends to produce CERENERGY(R) battery modules to provide grid storage solutions to the market.
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