Altech Advanced Materials AG: INITIATION OF TEST WORK PROGRAM WITH FRAUNHOFER INSTITUTE

- Advertisement -

Heidelberg (pta026/25.03.2020/14:00 UTC+1) Highlights:
* Initiation of HPA test work with internationally renowned Fraunhofer Institute
* Institute specialises in lithium-ion battery and separator technology research
* Impact of alumina impurities on battery safety

Altech Advanced Materials AG ("AAM"; FRA: AMA1) is pleased to provide an update from Altech Chemicals Limited, Australia, ("Altech Chemicals"), on its recently announced European based initiatives including high purity alumina research activities with various research bodies such as the internationally renowned Fraunhofer Society for the advancement of applied research.

Altech Chemicals recently commissioned the Fraunhofer Institute for Ceramic Technologies and Systems (IKTS) of Dresden, Germany to undertake various HPA battery product application test work. The institute specialises in lithium-ion battery research but more specifically, separator technology. The commissioned work will focus on assessing the impact that impurities from lower quality alumina (sub-4N) have on electrolyte, a cause for lithium-ion battery thermal runaway, efficiency and life cycle reduction.

As an independent German based institute, the results of the HPA test work will be highly regarded by German and other European Industry within the value chain of the lithium ion battery and electric mobility. The Fraunhofer-Gesellschaft is the largest organisation for applied research in Europe and conducts research under contract for industry. A total of 72 institutes and research facilities work together under the umbrella of the Fraunhofer-Gesellschaft, which has an annual operating budget of EUR 2.6 billion.

The Management Board

About Altech Advanced Materials AG

Altech Advanced Materials AG ("AAM") currently plans to subscribe up to 49% in Altech Chemicals Australia PTY LTD ("Altech Australia") for up to USD 100 million from Altech. AAM is currently implementing its capital raising strategy to be able to fund the investment.

Altech Australia is currently building a high-purity alumina (99.99%, 4N HPA) production facility for 4,500 tons p.a. in Malaysia and also has its own deposit for the mining of the main raw material kaolin. 4N HPA is needed for the production of LED lights as well as a separator for lithium-ion batteries, e.g. needed for electric vehicles and smartphones. Market demand for 4N HPA is expected to grow with a CAGR of 30% p.a. until 2028. The process patented by Altech Australia allows the production of HPA as cost leader, as the HPA can be obtained directly from kaolin. This allows production without the use of energy-intensive aluminium. The production volume for the first 10 years is secured by an off-take agreement with Mitsubishi Australia and the production capacity and quality is guaranteed by the German plant manufacturer, SMS group GmbH, Dusseldorf, which has also agreed to contribute in equity to the Altech HPA project.

The project has an investment volume of approximately USD 390 million, of which KfW-IPEX Bank has already committed USD 190 million under certain conditions and of which USD 10 million is assumed as equity investment from SMS group GmbH. Altech Chemicals is in talks with Macquarie Bank on the provision of USD 90 million in mezzanine capital. The remaining USD 100 million is to be made available by AAM.

(end)

Emitter:	Altech Advanced Materials AG Ziegelhäuser Landstraße 3 69120 Heidelberg Germany
Contact Person:	Hansjörg Plaggemars
Phone:	+49 6221 64924-0
E-Mail:	info@altechadvancedmaterials.com
Website:	www.altechadvancedmaterials.com
ISIN(s):	DE000A2BPG14 (Share) DE000A2LQUJ6 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf