Altech Chemicals Limited (ASX: ATC) reports that two Memorandum of Understanding (MoU) have been executed by Altech Industries Germany GmbH (AIG) and Altech, with two European based suppliers of lithium-ion battery grade anode materials.
The MoUs set out the basis for the parties to work together for the possible future supply of materials to a battery material plant that would be constructed by AIG in Saxony, Germany and which is currently the subject of a preliminary feasibility study (PFS).
For graphite, AIG and Altech have executed a MoU with SGL Carbon GmbH (SGL), one of the leading producers of graphite in Europe. SGL Carbon is supporting Altech’s development of high purity alumina coated graphite material targeted for use by the lithium-ion battery industry.
In addition, the non-binding MoU details the potential future relationship whereby SGL would supply uncoated synthetic graphite anode material to an AIG battery materials plant in Saxony, Germany.
The indicative, non-binding volumes and prices that are prescribed in the MoU will be adopted in the AIG PFS financial model. SGL Carbon is a world leader in the development and production of carbon-based solutions and reported sales of Eur919 million in 2020. Only SGL supplied graphite has been used by Altech in test work conducted at its Perth research and development laboratory.
For silicon, AIG and Altech have executed an MoU with Ferroglobe Innovation S.L., a leading producer of high purity metallurgical silicon in Europe.
The non-binding MoU details the relationship whereby Ferroglobe would supply silicon anode material to an AIG battery materials plant in Saxony, Germany.
Ferroglobe is a leading producer of silicon metal with a proven ability to create new solutions and applications using state-of-the-art technology to drive innovation. It has the ability to produce high purity silicon, and is targeting the development of tailor-made silicon powders for use in the anode of lithiumion batteries. Only silicon supplied by Ferroglobe has been used by Altech in test work conducted at its Perth research and development laboratory.
The importance of environmental considerations has previously been highlighted as a key consideration in the design of AIG’s proposed battery materials coating plant.
The MoU executed with SGL and Ferroglobe not only establish the basis for the possible future supply of high-quality feedstocks suitable for the battery materials coating process, but also align with the objective to minimise the proposed plant’s carbon footprint and overall environmental impact.
Altech Managing Director, Iggy Tan, said the supply of high quality graphite and silicon from these leading European based materials suppliers would also minimise transport emissions attributed to feedstock shipments, plus their respective production facilities have the potential to utilise Europe’s extensive green electricity market.
Mr Tan said importantly, these suppliers, will like AIG, will be governed by the same stringent European Union (EU) environmental regulations. Both companies have a strong corporate focus on sustainability and reducing the environmental impact of their operations.
“Finally, partnering with EU based feedstock suppliers is expected to reduce any potential future supply chain risks when compared to non-European suppliers.”
For further information please visit: https://www.altechchemicals.com/
