Today Alpha HPA [ASX:A4N], producers of ultra-high purity alumina (HPA) and related premium aluminium materials, broadcast an expansion of its discussed agreement with global furnace company, EBNER GROUP.
A4N ad rocketed in the share market this morning — increasing by 7.5% and upping shares to $1 each at the time of writing.
So far in 2023, the aluminium-producing stock has risen by 57% and is currently up by almost 94% on the wider market’s 12-month rolling average:
Source: TradingView
Alpha HPA extends sapphire glass LOI with Ebner
Alpha alerted investors on advanced agreements with EBNER GROUP — extending ideas formed in March to provide better production and sale of synthetic sapphire glass.
Ebner-Fametec, a subsidiary of the EBNER GROUP, offers its sapphire growth technology and intends to use Alpha’s custom HPA tablets as feedstock for that technology.
Today, Alpha broadcast the expansion of its existing LOI with the global industrial and furnace company and its subsidiary to include a larger-scale roll-out of synthetic sapphire glass production and joint marketing for the project.
Both companies have agreed to work co-operatively on an additional, large-scale expansion of the existing Australia-based sapphire growth installation to be referred to as the ‘Nova Phase’.
Alpha and Ebner-Fametec are now considering a larger scale deployment of the synthetic sapphire growth units from 100 units (for phases B and C) to up to an additional 1,000 units (Nova Phase).
Both companies will also launch further research and market outreach activities relating to expanding their sapphire customer base. Additionally, they will share the cost of the research, work together to identify potential end-users and customers, and may investigate establishing a dedicated separate marketing unit.
Alpha said the decision to expand the existing agreements came after the parties received positive feedback from both potential customers and other renewable energy providers.
Managing Director, Rimas Kairaitis commented:
‘Alpha is very pleased to expand its collaboration with Ebner-Fametec. Alpha and Ebner-Fametec recognise the unique opportunity to enter this market, with both parties committed to deploying new technology and renewable energy into a sapphire market looking for higher quality and sustainably sourced materials.
‘The combined product marketing effort together with co-operation on the large-scale Nova Phase expansion, sets a path for Alpha to become a significant global supplier to this expanding sector.’
Alpha says it has identified a unique opportunity to partner with a world-class company and innovator — capitalising on a significant value-adding downstream use of its HPA product.
Using Fametic’s crystal growth process, Alpha estimates each growth unit will be capable of around 4,000 kilos (4 metric tonnes) of synthetic sapphire every year.
Alpha noted there have been supply concerns as technology sectors experience worldwide trends in de-risking and reshoring supply chains — a market that was historically dominated by Russian and Chinese companies.
More recently, there is a further call for end-users to diversify their suppliers, as they continue to feel pressured to decarbonise supply chains to meet emission targets.
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