FYI Resources Ltd (ASX:FYI) is welcoming the inclusion by the Australian Federal Government of high purity alumina (HPA) to the national priority list of critical minerals.
This decision is expected to assist FYI and joint development partner Alcoa (NYSE:AA) Australia who have the objective of being a major Australian producer of premium quality HPA.
Sought-after material
HPA has unique chemistry and physical characteristics. It is a sought-after material for use as a base in the manufacture of phosphors, sapphire glass and substrates for applications such as light-emitting diodes (LEDs) and also as a ceramic coating of the separator membrane in high energy density batteries such as those used in lithium-ion cells in electric vehicles.
FYI managing director Roland Hill said the company was encouraged to see that HPA had been included in the National Critical Minerals list.
About critical minerals
Critical minerals are metals and non-metals considered vital for the economic wellbeing of the world's major and emerging economies, yet whose supply may be at risk due to reasons of geological scarcity, geopolitical issues, trade policy or other factors.
Critical minerals are necessary for the manufacture of high technology devices, national defense applications and low-carbon, green growth-related applications.
"HPA is a unique material and FYI is proud of the role it will play in supplying premium quality HPA to the growing battery, downstream energy and critical minerals processing sector which will become increasingly important into the future,” Hill said.
Project aligns with policy changes
FYI’s HPA project strongly aligns with the growing policy changes globally that require higher standards of input materials and increased environmental and social governance (ESG) of the battery minerals supply chains.
The inclusion of HPA into the National Critical Minerals list signifies the importance that the product has in modern high-tech applications and reduced carbon future.
In adding HPA to the critical minerals list, Prime Minister Scott Morrison said Australia’s resources companies were leading the world in developing new critical minerals markets.
“A reliable partner”
The PM said, “The world is becoming a more uncertain place and we want to secure Australia as a reliable partner for local and global businesses that need the critical minerals we have right here in Australia.”
While global demand for critical minerals is increasing, global supply is uncertain due to the market, technical and commercial risks of critical minerals projects.
The need for robust supply chains has been highlighted by the COVID-19 pandemic. Countries are increasingly seeking access to reliable, secure and resilient supplies of the critical minerals they need.
Australia’s large critical minerals reserves, technical expertise and track record as a reliable and responsible supplier mean the sector can respond to market demand.
About FYI Resources
FYI is developing an innovative process design for the integrated production of high quality, HPA and is positioning itself to be a significant producer of 4N and 5N HPA in the rapidly developing high-tech product markets.
This HPA strategy’s foundation is the company’s moderate temperature, atmospheric pressure innovative process flowsheet. The quality attributes combine resulting in world-class HPA project potential.
The longer-term driver for HPA, with forecasts of >17% CAGR, is the outlook for the burgeoning EV 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.