ChemX locks-in agreement for high-purity assay revenue

ChemX Materials has locked-in an agreement to provide private firm Vytas with high-purity assay services on quartz and synthetic silica samples and expects revenue of between $15,000 to $30,000 per month based on the anticipated volume of material it plans to analyse.

The firms will explore the potential to utilise ChemX’s equipment and facilities when the company’s 24 tonnes per annum high-purity alumina (HPA) pilot plant in the Perth suburb of O’Connor is complete.

ChemX has invested significantly in its high-purity laboratory facility and the company’s 100 per cent owned HiPurA patented process.

Its patented process and high-tech facility are integral to producing high-purity material at the Alumina pilot plant and the company believes it can provide rapid turnaround times for the assayed samples.

Vytas is an unlisted public company in the bulk-scale production of ultra-high-purity quartz.

It is also engaged in the development of ultra-high-purity synthetic silica, carbon-free nano porous silicon, carbon-free silane, known as poly silicon and green hydrogen on demand.

ChemX Materials CEO Peter Lee said: “Partnering with another innovative developer of high-purity technology materials presents significant synergies for both companies. By leveraging our unique ChemX Assay Laboratory, we can offer Vytas accelerated turnaround times with exceptional precision, enabling them to accelerate their research and development processes.”

Management has been furiously working to commission the pilot plant and has successfully commissioned the Leach module and achieved “operational readiness” within the precipitation, drying and calcination areas. It is focused on completing electrical infrastructure installation and the solvent extraction module at the plant.

Using its patented technology, the company has produced 99.99 per cent (4N) HPA at micro-plant scale and is aiming for commercial quantities of the material to be manufactured when the plant is fully commissioned to take advantage of an expected increase in demand for the product.

The HiPurA process can produce both HPA and high-purity aluminium cathode precursor salts for lithium-ion batteries. Initial testing of the process indicates it is low in cost and energy consumption.

A competitive advantage for ChemX is the HiPurA process is modular, scalable and not tied to mine production. A modular plant can be built near an end-user’s processing operation if it produces the required alumina feedstock.

Importantly, HPA is on Australia’s critical minerals list and is widely used in a range of high-tech applications, including AI semiconductors, where it is used for polishing silicon chips used in AI applications.

LED sapphire facias such as TVs, tablets and mobile phones use HPA and it is widely used in LED light globes, with a global focus on replacing energy hungry old-fashioned bulbs giving the market a nudge.

When the electric-vehicle market resumes its expected steep sales climb, HPA usage may lift due to its use as a separator in lithium batteries.

Following the full commissioning of the company’s pilot plant and the ramp-up for feedstock, the HPA world may be ChemX’s oyster. 

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au