During the finalisation of the Silumina Anodes™ project definitive feasibility study (DFS), Altech Batteries Ltd (ASX:ATC) has expanded output by eight-fold, increasing the capacity from 15 gigawatt-hours (GWh) to 120 GWh, with no change to plant and equipment.
The expansion is a significant milestone for Altech, which it says will effectively cater to the long-term demand for silicon-type anodes within the industry.
Altech has revised its production strategy, originally outlined in the DFS, to exclusively produce alumina-coated metallurgical silicon for Silumina Anodes™, increasing its output to 8,000 tonnes per annum.
The company had proposed the production of 10,000 tonnes per annum of Silumina Anodes™ product, comprising 1,000 tonnes of high-purity alumina-coated metallurgical silicon incorporated into 9,000 tonnes of similarly coated graphite (10% mix).
This shift eliminates the integration of this product with graphite at Altech's facility, a task now designated for battery manufacturers.
Expanding output and exploring new partnerships
Customer feedback revealed a preference for utilising existing graphite sources, making Altech-coated silicon more appealing. Despite earlier considerations of coating graphite with alumina, Altech’s research indicated a minimal cost-to-reward ratio for this process.
This strategic pivot towards an all-silicon product is expected to significantly enhance the company's economic prospects. The technology addresses critical challenges in silicon usage, such as expansion fragmentation and high first-cycle loss.
Battery manufacturers can now opt for batteries with higher energy density or maintain existing levels while reducing graphite use, potentially lowering production costs.
The recent restrictions imposed by China on global graphite exports, a material critical to lithium-ion battery production, pose new challenges for European and American battery makers. China accounts for approximately 90% of the global production of lithium-ion battery graphite.
In response to these industry shifts, Altech is engaging with Ferroglobe, its European silicon partner, to increase metallurgical silicon supplies.
The company has also signed non-disclosure agreements with major automotive groups in Europe and the United States interested in commercial sample testing.
These samples will primarily be sourced from the nearly completed Silumina Anodes™ Pilot Plant in Saxony, set to commence operations in the early part of next year, complementing the limited production capacity of Altech's Perth R&D laboratory.
Growing demand and Altech’s significance
Managing director Iggy Tan recently caught up with private equity firm Compass Capital where he underscored the significance of the eightfold increase in Silumina Anodes™ production, a pivotal enhancement to the company’s strategy achieved without substantial modifications to the plant or capital investments.
He drew attention to the growing demand within the lithium-ion battery sector for higher-density batteries, stressing the need to decrease dependence on graphite, especially against the backdrop of China's export limitations. He expressed confidence in Altech’s alumina-coated silicon playing a crucial role in helping battery manufacturers navigate these challenges.
Tan’s remarks conveyed optimism about the revised business model, indicating a promising trajectory for Altech's future activities.