FYI Resources Ltd (ASX:FYI) has enhanced its finances by way of a research and development (R&D) tax incentive rebate payment of $890,000 for the 2021/2022 financial year.
The rebate relates to FYI’s expenditure on the development of the HPA project, which FYI is progressing jointly with Alcoa (NYSE:AA) of Australia.
This project incorporates the development of FYI's innovative and fully integrated process to produce high-quality, high-purity alumina (HPA).
R&D Tax Incentive
The R&D Tax Incentive rebate is an Australian Government initiative jointly administered by AusIndustry and the Australian Taxation Office. Eligible companies can receive cash refunds of up to 43.5% of all eligible expenditure on designated research and development projects.
FYI will continue to direct R&D funds towards the ongoing development of its HPA strategy of a fully integrated, low-risk, low-cost production of high purity 4N (99.99%) and 5N (99.999%) alumina products.
This eligible R&D includes technical work on advancing finished HPA product to requested specifications of potential customers as well as zero-carbon studies and value add specialty downstream battery applications such as HPA coatings for anode and cathode coating architecture.
About 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 LEDs 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.
FYI is positioning itself to be a significant producer of 4N and 5N HPA in the rapidly developing high-tech product markets.
FYI applies both an ESG and economic overlay of the company and its operations to ensure long-term sustainable and shareholder value is created via the development of the innovative, high-quality, ultra-pure HPA project.