Altech Batteries Limited · ASX:ATC
Altech Batteries — Investor Presentation (May 2021)
58 slides from Altech Batteries's investor presentation, May 14, 2021
Slide 1: Company Presentation
Altech Chemicals Limited ASX: ATC FRA:A3Y Company Presentation Iggy Tan Managing Director
Slide 2: Tesla Battery Day 2020
• Halve the cost per KWh of battery production • Below the $US100/KWh threshold • “4680” Tesla cell (5x energy, 6x power) • 3TWh per year at its own factories by 2030 Tesla Battery • Equal 20 giga factories Day 2020 • Increased use of Silicon (30%) in anodes Altech Chemicals Limited ASX : “ATC” FRA
Slide 3: Cathode Evolution
• Predominant development of cathodes • Increasing Ni, Co content • Higher energy density 300 Capacity 250 development in cathodes Specific Energy 200 Wh/kg) 150 100 50 0 LFP LMO LCO NMC NCA Cathode Evolution Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 4: First Cycle Lithium Loss
• 8-10% of Li becomes inactive on first charge • Forms SEI coating on anode particles • Industry has been trying to solve this problem • Many research literature shows alumina coating works First Cycle • But currently expensive and not commercial Lithium Loss ` Capacity First Cycle Lithium Loss Grap
Slide 5: First Cycle Lost Capacity
First Cycle Lost Capacity 80% First cycle loss capacity Capacity Life of Battery Number of Cycles Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 6: Why HPA Coating?
• Reduces first cycle loss (Tau et al., 2019) • Improves cycling stability (Tau et al., 2019) • Improves high-rate performance (Feng et al., 2016) • Improves fast charging capability (Kim et al., 2016) Why HPA • Prevents thermal runaway under mechanical abuse Coating ? (Xu et al. 2019) • Scavenges H
Slide 7: Literature - Alumina coated graphite performance
Literature - Alumina coated graphite performance 1 110 100 Capacity Retention Rate (%) 90 Coated Graphite 85% 80 Uncoated Graphite 75% 70 60 40 80 120 160 200 Cycle Number 1. Synthesis of Alumina-Coated Natural Graphite for Highly Cycling Stability and Safety of Li-Ion Batteries Altech Chemicals Lim
Slide 8: Literature - Nail Test, Coated graphite prevents runaway
Literature - Nail Test, Coated graphite prevents runaway 1 Non-Coated graphite 600 Deg C Coated graphite 100 Deg C thermal runaway 1. Synthesis of Alumina-Coated Natural Graphite for Highly Cycling Stability and Safety of Li-Ion Batteries Altech Chemicals Limited ASX : “ATC” FRA : “A3Y” Tao Xu, Chen
Slide 9: Alumina coating scavenges HF
HF ions from electrolyte • Corrosive HF ions in electrolyte attack SEI layer attacks SEI layer HF ` • More lithium is used to replace SEI Graphite Particle Alumina layer HF coating • Lithium degradation over battery life scavenges HF • Literature research demonstrates alumina layer scavenges HF More
Slide 10: Coating Methods
1. Vapour Method • Atomic Layer Deposition – costly, complex, not mass production 2. Solids Method Coating • Non continuous layer 3. Liquid Method Methods • Most promising • Easier to commercialize Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 11: Our Coating Advantages
• Cheaper process • Easier and simple to commercialize • High purity alumina coating – less contamination • Coating layer uniform • Lower processing temperature Our Coating • Adjust layer thickness – diff applications Advantages Graphite Particle Li+ Altech Alumina Li+ Coating Li+ nm alumina Prevent
Slide 12: Reduced First Cycle Lost Capacity
Reduced First Cycle Lost Capacity Increased 80% Battery Life Potential reduction first cycle Capacity Life of Battery Extension loss capacity Number of Cycles Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 13: Under the Electron Microscope
Under the 2 nm continuous Electron alumina coating Microscope Altech alumina coating technology Current attempts at alumina coating Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 14: Promising Results in half cell battery testing
• First phase, 100 cycle battery tests completed • Coated graphite performance over non coated is encouraging • Further test runs required for repeatability Promising • Potential improvements to lithium-ion battery life, Results in half capacity and chargeability cell battery testing Altech Chemical
Slide 15: Potential Game Changing Technology
• Breakthrough alumina coating technology • Coating graphite particles with nano layer HPA • Potential to reduce the “first cycle” lithium loss Potential Game • Game changer if successful Changing • Potential to reduce first cycle loss by 8-10% Technology • Potential to increase Li-ion battery life
Slide 16: Collaboration with SGL Carbon
• Collaboration agreement with SGL Carbon • Alumina coating of anode grade graphite • Europe leading synthetic graphite producer Collaboration • 80% of graphite in batteries are synthetic with SGL • Europe sourced graphite Carbon Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 17: Silicon most promising future anode material
• Ten times capacity Si (3,579 mAh/g) C (372 mAh/g) • Promising anode material • But volume expansion 300% on lithiation - fractures • Delamination from copper collector Silicon most • But has 40-50% first cycle loss promising • But has higher fade during life future anode material electrical isolat
Slide 18: First Cycle Lost Capacity
Silicon First Cycle Lost Capacity Carbon Cycle Lost Capacity First cycle 80% loss capacity and fade Capacity Reduced Life of Battery Number of Cycles Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 19: Alumina coating could prevent fracture & reduce first cycle loss
Alumina coating could prevent fracture & reduce first cycle loss Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 20: Alumina coating of Silicon in our Lab
Alumina coating of Silicon in our Altech alumina Silicon Particle Potential to Lab coating reduce fractures Silicon Silicon Altech Alumina Particle Coating nm alumina Prevents SEI and coating Lithium loss Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 21: Reduced First Cycle Lost Capacity
Silicon Reduced First Cycle Lost Capacity Density Potential of 80% silicon/graphite in Anodes Capacity Extended Life of Battery Number of Cycles Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 22: Potential impact of silicon in anode of Tesla Model
Potential impact of silicon in anode of Tesla Model 3 on single charge 423km 0%Silicon 700km 10%Silicon 1,000km 20%Silicon 1,300km 30%Silicon Altech Chemicals Limited ASX : “ATC” FRA : “A3Y” Source:Altech Chemicals
Slide 23: Collaboration Agreement with Ferroglobe
• Collaboration agreement with Ferroglobe • Leading Li-ion battery Si supplier • Increased Si - future in Li-ion batteries Collaboration • Alumina coating of silicon seen as long-term solution Agreement • Ferroglobe approached Altech with Ferroglobe Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 24: Battery Materials Coating Project
• Pre-feasibility battery materials coatings plant • Schwarze Pumpe, Saxony State, Germany • 10,000 tpa of graphite coating Battery • State where EV’s and battery plants Materials • Option to purchase industrial site Coating Project • Study progressing well Germany Altech Chemicals Limited ASX : “AT
Slide 25: Schwarze Pumpe
Schwarze Pumpe Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 26: AIG Office and warehouse bays
AIG Office and warehouse bays AIG’s Site Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 27: Battery Materials Coating Technology
Battery Materials Coating Technology coated silicon Coated graphite Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 28: Europe's Push for Battery Industry
• Europe major battery industry • Capacity of 600 GWh by 2030 • Stringent 2020 EU CO2 emission (95g/km) • Push to EVs by European car manufacturers Europe’s Push • Less reliant on Asia for Battery • VW retooling 16 factories Industry Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 29: Li-Ion Battery Cell Capacity - Europe
Li-Ion Battery Cell Capacity - Europe Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 30: Graphite Demand (tpa)
Europe Graphite Demand of 600ktpa by 2030 Graphite Demand from European Gigafactories 900,000 Roskill Graphite Demand (tpa) 800,000 Roland Zenn 700,000 Roland Zenn with Panasonic 600,000 500,000 400,000 300,000 200,000 100,000 0 2016 2018 2020 2022 2024 2026 2028 2030 Year Altech Chemicals Limited A
Slide 31: Europe Graphite Market Potential
• Graphite Demand of cira 600k by 2030 • Estimated 10 billion EUR market volume • Battery makers prepared to pay for extra energy Europe density – reduces costs of battery Graphite • Altech alumina coating technology ready to meet this growth Market Potential Altech Chemicals Limited ASX : “ATC” FRA
Slide 32: 4,500 tpa High Purity Alumina Plant
4,500 tpa High Purity Alumina Plant Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 33: HPA Use and Market
• HPA 99.99% purity • Feedstock for LED and Li-ion battery industries • Sapphire wafer substrate for LEDs • Alumina coating in Li-ion batteries HPA Use and • Growth expected from 30ktpa to 272 ktpa by 2030 Market • Shortage of supply forecasted Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 34: HPA used in Li-ion Batteries
Separator (temp protection) Cathode (Dendrite Li+ Li+ Li+ Li+ Li+ Li+ Li+ Li+ growth) HPA used in Anode (first cycle loss Li+ Li+ Li+ Li+ Li+ Li+ Li+ Li+ Li-ion capacity & dendrite Batteries growth) Li+ Li+ Li+ Li+ Li+ Li+ Li+ Li+ Graphite Negative Cathode Positive Separator Electrode Electrode Alte
Slide 35: Altech's disruptive technology
Current HPA Producers Alumina Alumina Aluminium Refinery Smelter Dissolution Bauxite Smelter Grade Alumina 99.5% Aluminium Metal 99.99% (4N) Altech’s disruptive ~US$3,000 per tonne HPA technology ALTECH HPA PLANT One Single Process Step Kaolin 99.99% (4N) (aluminous clay) HPA Altech Chemicals Limite
Slide 36: Meckering all approvals in place
• 12.7Mt JORC Mineral Resources^ • Mining approval granted • Works approval granted • Simple free dig mining Meckering • Campaign mining, 2 months - 3 years feed all approvals in • Then just sea container loading operation place • 50,000 tpa kaolin per annum ^ Measured Resources 1.5Mt @ 30% Al2O3, I
Slide 37: HPA Plant Johor, Malaysia
• Chemical-zoned industrial park • 60% lower operating costs • HCl plant nearby • Close to end markets HPA Plant • 5-10 year corporate tax free Johor, • No radioactive waste Malaysia Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 38: Proposed HPA Plant
HCl Plant Leach & Neutralisation Fine Sand Kaolin Calcination Roasting & Calcination Kaolin Kaolin Beneficiation Receival HPA Finishing Plant Final Product Administration Control Room Lab TNB Substation Main Station Gatehouse Car Park Proposed HPA Gat Plant e Altech Chemicals Limited ASX : “ATC” FRA
Slide 39: Altech's Patented HPA Process
Altech’s Patented HPA Process Campaign Mining Sea Container To Fremantle MECKERING Shipping Sea Container Meta Kaolin Flash JOHOR Dryer 700 C Hydrochloric Acid Filter Cooler Screening Calciner Milling HCl Gas Polishing Screening Filter Filter Drum Scrubber > 0.3mm Acid Leach Stage 1 Crystalisation S
Slide 40: Established Proven Chemistry
• Chemistry by Swiss in 1900s • USA & Alcoa developed further 1980’s • No demand for HPA in 1980’s • New HPA growth demand (LEDs LIBs) Established • Altech applied chemistry to Meckering Proven • Very successful, disruptive, lowest cost Chemistry • One patent granted, 8 pending Altech Chemicals Limi
Slide 41: Bottom Quartile for Op Costs
Our Advantages 1. We own our feedstock 2. Main reactant HCl re-used 3. Plant in low cost country (Malaysia) Bottom Quartile for Op Costs Source: Persistence Market Research “High Purity Alumina Market – Global Industry Analysis and Forecast 2016-2024” Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 42: Altech's Green HPA process
• Certified as “Green” project • Centre of International Climate and Environmental Research (CICERO) • Good environmental governance Altech’s • Doesn’t use Al metal Green • 46% reduction of greenhouse gases HPA process • Uses 41% less energy than conventional Altech Chemicals Limited ASX : “ATC” FRA
Slide 43: Mitsubishi 10 year off-take
• 10 year exclusive off-take agreement • Mitsubishi has downstream customers • Altech gets paid ex gate • Price is at prevailing market price Mitsubishi • Strategic focus for Mitsubishi 10 year off-take Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 44: SMS group
SMS group Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 45: Lump Sum Turn Key Contract
• SMS group – German EPC contractor • Lump sum turn key contract • Completion and cost risk • Throughput guarantee Lump Sum • Process & quality guarantee Turn Key • Committed US$ 15 mil equity Contract Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 46: Economics FIDS Equity Model
• Pre-tax NPV7.5 US$ 505 million • Payback (full rate) 3.9 years • IRR - 22% • EBITDA US$ 76 million p.a. Economics • Capital cost US$ 298 million* FIDS Equity • Production Costs - US$ 8.55 /kg Model • LT Sale Price - US$ 26.9/kg • Gross Margin – 68% • Pre tax, pre financing equity model Altech Chem
Slide 47: Senior Debt of US$190m Completed
• Senior debt funding - KfW IPEX-Bank • German state owned bank • Total debt of US$ 190 million • US$ 170 million export credit finance Senior Debt • 50% of plant – German suppliers of US$190m • Low interest, long tenure Completed • 18 months of due diligence Altech Chemicals Limited ASX : “ATC” FRA
Slide 48: Secondary Debt – Listed Green bonds
• Listed green bond progressing well • Target raising of US$144 million • US$100 million as project debt • Balance as prepaid coupon interest Secondary • Bonds to be listed in Frankfurt Debt – Listed • Five year term Green bonds • SPV as lender, 2 lien to KfW IPEX-Bank Altech Chemicals Limited ASX :
Slide 49: Use and Source of Funds
Use of Funds (US$m) Source of Funds (US$m) Plant Capex $298 KfW Contingency $ 28* KfW Senior Loan $190 Debt Res & WC $ 46* Sec Debt (Green Bonds) SMS Equity Contribution $ 90 $ 10 Use and Fees & Costs $ 41 Less Spent ($ 23) Project Equity (Sell 49%) $100 ^ Source of Total Use of Funds $390 Total Fun
Slide 50: Equity sell down of 49% for US$100m
Altech Chemicals Altech Advanced Australia Limited (ASX:ATC) Materials AG Germany 51% 49% Project Co US$100M Altech Chemicals Australia Pty Ltd Australia 100% 100% Equity sell Australia Altech Meckering Pty Ltd Malaysia Altech Chemicals Sn Bd down of 49% Kaolin Contract Land HPA Chemical for US$100m
Slide 51: Removed Greenfield Risks
• Environmental approvals completed • All permitting approvals completed • Operating licence granted Removed • Construction commenced Greenfield • Ground conditions known Risks • Contractors known Construction • Stage 1 and 2 completed Commences • Running start when project finance done Altech Chemi
Slide 52: Site works
Site works Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 53: Maintenance Building
Maintenance Building Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 54: Maintenance Building
Maintenance Building Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 55: Electrical Substation
Electrical Substation Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 56: Altech - Development leader in HPA
Altech - Development leader in HPA Balance of finance/equity Site for Plant Purchased Senior Project Finance HPA Plant Engineered Scoping or PFS Study Lump sum fixed price Offtake Arrangement Plant Contruction Deposit location Final Investment JORC Resource EPC Contractor Mine Permitted JORC Reserve
Slide 57: Right Place Right Time Right Feedstock
Right Place Right Time Right Feedstock Right Technology Thank you Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 58: Forward Looking Statements
Forward Looking Statements Forward-looking Statements This announcement contains forward-looking statements which are identified by words such as ‘anticipates’, ‘forecasts’, ‘may’, ‘will’, ‘could’, ‘believes’, ‘estimates’, ‘targets’, ‘expects’, ‘plan’ or ‘intends’ and other similar words that involv