Altech Batteries Limited · ASX:ATC
Altech Batteries — Altech Chemicals — Investor Presentation (February 2022)
54 slides from Altech Batteries's investor presentation, February 2022
Slide 1: Company Presentation Iggy Tan Managing Director
Altech Chemicals Limited ASX: ATC FRA:A3Y Company Presentation Iggy Tan Managing Director
Slide 2: 4,500 tpa High Purity Alumina Plant
4,500 tpa High Purity Alumina Plant Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 3: 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 • Si has ten times higher capacity than g
Slide 4: Cathode Evolution: Specific Energy and Capacity
• 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 5: First Cycle of a Brand New Battery
First Cycle of a Brand New Battery Discharging Li+ Li+ First Cycle Li+ Lithium Loss Capacity Li+ Li+ Li+ Li+ Li+ Graphite Negative Cathode Positive Separator Electrode Electrode Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 6: Developments Anode side
• Eight (8%) of Li becomes inactive on first charge • Forms SEI coating on anode particles • Industry has been trying to solve this problem • Attempts to pre-coat anode with alumina Developments • Expensive and not commercial Anode side Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 7: Formation of SEI layer on first charge
Formation of SEI layer on first charge ` Graphite Particle Lithium ions in SEI become inactive Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 8: 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 9: Altech's alumina coating technology
Altech’s alumina coating technology Graphite Particle nm alumina Prevents SEI and coating Lithium loss Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 10: 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 11: 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 12: Battery Material Coating Technology
• Breakthrough alumina coating technology • Coating graphite particles with nano layer HPA • Potential to reduce the “first cycle” lithium loss Battery • Game changer if successful Material • Potential to increase energy density by 8% Coating • Potential to increase Li-ion battery life by 20-30% Tec
Slide 13: Battery Materials Coating Project, Germany
• Pre-feasibility battery materials coatings plant • Schwarze Pumpe, Saxony State, Germany • State where EV’s and battery plants are located Battery • Option to purchase industrial site Materials • Anode alumina coating Coating Project • Strong interest in Europe Germany Altech Chemicals Limited ASX
Slide 14: Collaboration Agreement with Ferroglobe
• Collaboration agreement with Ferroglobe • Leading Li-ion battery Si supplier • Increased Si - future in Li-ion batteries Collaboration • Volume change, low initial Coulombic Efficiency are roadblocks Agreement • Alumina coating of silicon seen as long-term with solution Ferroglobe Altech Chemicals
Slide 15: Europe's Push for Battery Industry
• Europe major battery industry • Capacity of 147 GWh by 2024 • 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 16: Li-Ion Battery Cell Capacity - Europe
Li-Ion Battery Cell Capacity - Europe Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 17: What is HPA?
• Sapphire gemstone from alumina (Al2O3) • Synthetic sapphire – hard as diamond • 99.99% (4N) purity or greater • Smelter Grade Alumina (SGA) ~ 99.5% Bayer What is Process uses sodium hydroxide (NaOH) HPA? • Sodium impurity is a problem for downstream users Altech Chemicals Limited ASX : “ATC” FRA :
Slide 18: High Price for Purity
High Price for Purity Smelter Grade High Purity High Purity High 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$15,000 per t US$9,000 per t US$40,000 per t Our Target Business Altech Chemicals Limited A
Slide 19: HPA in LEDs & Lithium Ion Batteries
HPA in LEDs & Lithium Ion Batteries Sapphire Furnace (2,000o C) Sapphire Crystal Boule Sapphire Wafer LEDs Nano Powder Separator Coatings LITHIUM ION BATTERIES Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 20: LED Lighting – Sweeping the World
LED Lighting – Sweeping the World Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 21: 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 22: HPA in future solid state batteries
2-3 times more - Separator + HPA expected - + HPA in future solid state Cathode batteries Cathode Anode Anode Liquid electrolyte Solid state electrolyte Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 23: Other Uses of HPA
• Micro chip semi conductors • High performance catalysts • Purity grinding media • High performance ceramics Other Uses of HPA Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 24: HPA World Demand
• From 30k tpa to 272,ktpa by 2028 • LIB separators 68% • LEDs demand 32% HPA world Demand Source: CRU Consulting Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 25: Potential HPA supply shortage
Potential 20k tpa shortfall HPA supply shortage 50k tpa shortfall Source: CRU Consulting Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 26: Current HPA producers
Sumitomo Chemicals (Japan) 3,020 Others (15), 3,570 Sasol Huantou, 800 (South Africa) Dailian Rall, 600 1,800 Nippon Light Metal, Current HPA producers 1,100 Baikowski (France) Hebei Pengda (China) 1,200 3,000 Xuancheng Jing Rui Zibo Xinfumeng (China) 1,200 (China) 2,500 Altech Chemicals Limited ASX
Slide 27: 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 28: Low-Impurity Kaolin Feedstock
• Very low iron (Fe) due to weathering • 12.7Mt JORC Mineral Resources^ • Meckering, Western Australia % Bauxite Darling Altech Kaolin * Low-Impurity Al2O3 Range* 34.5 30.0 Kaolin SiO2 21.5 57.9 Feedstock Fe2O3 21.2 0.4 TiO2 2.00 0.7 K2 O 0.24 0.2 NaO 0.005 0.01 ^ Measured Resources 1.5Mt @ 30% Al2O
Slide 29: Meckering all approvals in place
• Mining approval granted • Works approval granted • Simple free dig mining • Campaign mining, 2 months - 3 years feed Meckering • Then just sea container loading operation all approvals in • 50,000 tpa kaolin per annum place Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 30: 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 31: 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 32: 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 33: 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 34: 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 35: 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 36: 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 37: SMS group
SMS group Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 38: 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 39: Aiming to Under-promise Over-deliver
• For SMS 100% throughput guarantee • Lots of “fat” in design assumptions • Using 79% instead 90% Utilisation • Using 60% instead 90% Recovery Aiming to • Using 30% instead 34% head grade Under-promise • 3 Yr ramp up instead of 2 Yr Over-deliver • Strong possibility of 6,000 tpa Altech Chemicals Lim
Slide 40: 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 41: Quality Major Shareholders
Melewar 10% SMS Board Mge 3% Quality D Balaton /Delphi Major Others 19% Shareholders 64% Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 42: Senior Debt by KfW IPEX-Bank
Senior Debt by KfW IPEX-Bank Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 43: 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 44: Secondary Debt – Listed Green bonds
• Commenced listed green bond process • Target raising of US$144 million • US$100 million as project debt • Balance as prepaid coupon interest Secondary • Bonds to be listed in Frankfurt Debt – Listed • Five year term Green bonds • SPV as lender, 2 lien to KfW IPEX-Bank Altech Chemicals Limited ASX
Slide 45: Use and Source of Funds
Use of Funds (US$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 46: 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 47: 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 48: Site works
Site works Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 49: Maintenance Building
Maintenance Building Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 50: Maintenance Building
Maintenance Building Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 51: Electrical Substation
Electrical Substation Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 52: Altech - Development leader in HPA
Altech - Development leader in HPA Senior Project Finance Secured Plant Construction commenced Plant Contruction Commenced EPC Contractor Appointed Final Investment Decision Balance of finance/equity Site for Plant Purchased HPA Plant Engineered Scoping or PFS Study Lump sum fixed price Offtake Arra
Slide 53: Right Place Right Time Right Feedstock
Right Place Right Time Right Feedstock Right Technology Thank you Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Slide 54: 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
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