ChemX Materials (ASX: CMX) has been awarded nearly $662,000 by the Federal Government through a research and development (R&D) rebate for its pioneering chemistry-focussed, patented high-purity alumina (HPA) research.
The cash boost is some $100,000 more than the company was originally estimated to receive under its R&D grant eligibility and will be directed to help drive its 24-tonne per annum HPA pilot plant development in WA.
Much of the refund will go towards extinguishing an existing advance facility with finance provider Radium Capital to the sum of $442,000, leaving more than $207,000 in working capital after repayment of fees and charges for the facility.
The original advance facility was taken out in September to fund control system engineering and increase safety and automation of ChemX’s unique “HiPurA” process.
Management says the short-term advanced funding option enabled its pilot plant systems to be improved as the company closes in on the final 5 per cent push in the commissioning of its high-tech development.
ChemX believes the system enhancements will reduce future expenditure requirements and assist with establishing the basis for a future commercial scale plant operation.
ChemX is focussed on the near-term delivery of its patented HiPura process at a pilot plant based in O’Connor, WA.
Its HiPurA process that was developed in-house and can produce both HPA and high-purity aluminium cathode precursor salts for lithium-ion batteries.
The company has already shown HiPurA’s validity by producing HPA exceeding “four-nines” (99.99%) purity through a micro plant. It is now constructing a 24 tonne per annum pilot plant in Perth before a decision to advance its technology towards large-scale production.
Initial testingindicates the process is low in cost and energy consumption compared to alternative methods. One of its competitive advantages is that the HiPurA process is modular, scalable and is not tied to mine production, with the feedstock being a widely-available chemical often found in abundance across Australia in white kaolin clays.
HPA is widely used in four specific markets, all of which are currently burgeoning.
It is used as a separator for lithium batteries, arguably the biggest commercial opportunity available and its largest market is in LED light globes, another rapidly growing market.
Apple’s iPhone is also a big user of HPA as its sapphire facias are largely made up of the product and the semi-conductor market is also responsible for a portion of HPA usage.
Commissioning of the HiPurA pilot plant is expected in the coming months, with the company already ticking off a string of core tasks related to its construction.
Is your ASX-listed company doing something interesting? Contact: office@bullsnbears.com.au