FYI Resources Ltd (ASX:FYI) has started trial production of high purity alumina (HPA) with an extended pilot plant campaign in collaboration with Alcoa (NYSE:AA) of Australia underway.
The pilot plant at FYI’s facility in Welshpool, Western Australia, is operating to design with current production in line with expectations.
The proposed commercial production of HPA by FYI and Alcoa is aligned with the Western Australian Government’s Future Battery Industry Strategy which aims to create a world-leading, sustainable and value-adding battery industry that creates local jobs, contributes to skill development, supports economic diversification and benefits regional communities.
Site visit
As such and coinciding with the start of the trial, the Minister for Mines and Petroleum; Energy Bill Johnston and Department of Jobs, Tourism, Science and Innovation representatives undertook a site visit to view the joint development HPA pilot plant in operation.
READ: FYI Resources and Alcoa Australia embark on extended HPA pilot plant trial
This marks the second joint pilot plant trial between the two parties and is designed to demonstrate improvements to the production process, as well as generate bulk HPA for prospective customers to assess.
The trial will carry a clear environment, social and governance (ESG) focus, providing information for FYI and Alcoa to track how their production process conforms with high ESG standards.
FYI has qualified for land in the Kwinana Industrial Area as part of the WA Government’s actions to facilitate projects related to the strategy, administered by the Department of Jobs, Tourism, Science and Innovation.
Alcoa agreement
In April 2021, FYI released an updated feasibility study (DFS) for the production of HPA using an innovative flowsheet that demonstrated the project's technical merit and impressive economic metrics.
Following the signing of an MoU with Alcoa in August 2020, the companies signed a binding term sheet in October 2021 for the joint development of the HPA project including the funding allocation of up to US$243 million of the anticipated capital expenditure of US$250 million for 65% of project equity.
Use of HPA
HPA is increasingly becoming the primary sought-after input material for certain high-tech products principally for its unique properties, characteristics and chemical properties that address those applications high specification requirements such as LED’s and other sapphire glass products.
The longer-term driver for HPA, with forecasts of >17% CAGR, is the outlook for the burgeoning electric vehicle and static energy storage markets where the primary function is in the use as a separator material between the anode and cathode in batteries to increase power, functionality and safety of the battery cells.
The foundation of FYI’s HPA strategy is the company’s moderate temperature, atmospheric pressure innovative process flowsheet. The strategy’s quality attributes combine resulting in world-class HPA project potential.