NRF backs critical mineral processing with $75 million investment in Alpha HPA

The National Reconstruction Fund Corporation (NRFC) recently announced it will invest $75 million in Gladstone-based advanced materials company Alpha HPA, backing the company’s first-of-a-kind processing technique for producing ultra-high-purity alumina.

Alpha HPA has commercialised what is claimed to be the world’s first adoption of the solvent extraction purification technique to produce high-purity alumina (HPA) with fewer critical impurities, less waste and lower emissions. High-purity alumina produced by the company will be used across a host of applications and growth industries that are critical to the emerging economy, including semiconductors, pharmaceuticals and lithium-ion batteries.

HPA was added to Australia’s Critical Minerals list in 2022 and is particularly in demand due to its use in cooling high-powered computer chips in AI data centres.

As part of a $225 million funding round, the NRFC’s cornerstone commitment acted as a catalyst, helping to crowd in the remaining $150 million from private investors to complete the raise.

The investment will allow Alpha HPA to complete Stage Two of its expansion, which involves building the world’s largest single manufacturing facility for HPA, capable of producing 10 ktpa of HPA-equivalent per annum. Once completed, the project will be the nation’s first commercial-scale HPA facility.

The company has been operating Stage One of the project, a small-scale commercial production facility, since 2022. The project site in Gladstone is located within the Net Zero Economy Agency’s Central Queensland Priority Region.

Alpha HPA has previously raised approximately $590 million for Stage Two, including securing a $320 million debt facility from the Northern Australia Infrastructure Facility (NAIF) and Export Finance Australia (EFA). The company has undertaken a further capital raise to accelerate project delivery.

Alpha HPA currently employs around 130 people, and the project will create up to 420 jobs during construction and commissioning. Once construction is complete, the facility will create an additional 120 ongoing full-time positions over its operational life of more than 25 years.

“This investment backs a truly innovative Australian company, but also improves Australia’s economic security and supply chain resilience around a critical mineral that is key to the future economy,” said NRFC Chief Executive Officer David Gall. “As well as creating high-quality jobs and sovereign capability, NRFC’s investment will deliver huge sustainability benefits.

“Alpha’s unique IP makes lower temperature processing possible. Coupled with the project’s use of 100% renewable electricity, this means it produces around 70% less emissions than current methods of producing HPA.”

“NRFC’s investment is a strong endorsement of Alpha HPA’s strategy, technology and role in building sovereign manufacturing capability in Australia,” said Alpha HPA Managing Director Rob Williamson. “High-purity alumina is a critical input into semiconductors, lithium-ion batteries and pharmaceutical manufacturing, where ultra-high-purity materials are essential for performance, safety and reliability.

“This investment supports Australia’s ability to move up the value chain, manufacturing high-value materials onshore rather than exporting raw inputs.”

Image credit: Alpha HPA