ALTECH BATTERIES LTD — Investor Presentation 2021

Feb 16, 2021

Altech Chemicals Limited ASX: ATC FRA:A3Y

Company Presentation Iggy Tan Managing Director

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4,500 tpa High Purity Alumina Plant
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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• Halve the cost per KWh of battery production

• Below the $US100/KWh threshold

• “4680” Tesla cell (5x energy, 6x power)

• 3TWh per year at its own factories by 2030

• Equal 20 giga factories

• Increased use of Silicon (30%) in anodes

• Si has ten times higher capacity than graphite

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Tesla Battery
Day 2020
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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• Predominant development of cathodes

• Increasing Ni, Co content

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•
Higher energy density
300 Capacity
250
development in
200
cathodes
150
100
50
0
LFP LMO LCO NMC NCA
Cathode Evolution
Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Wh/kg)
Specific Energy
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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First Cycle of a Brand New Battery

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Discharging
Li [+]
Li+
First Cycle Li+
Lithium Loss
Li+
Capacity
Li+
Li+ Li+ Li+
Graphite Negative Cathode Positive
Separator
Electrode Electrode
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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• Eight (8%) of Li becomes inactive on first charge

• Forms SEI coating on anode particles

• Industry has been trying to solve this problem

• Attempts to pre-coat anode with alumina

• Expensive and not commercial

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Developments
Anode side
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Formation of SEI layer on first charge

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`
Graphite Particle
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Lithium ions in SEI become inactive

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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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First Cycle Lost Capacity
80%
Life of Battery
Number of Cycles
Capacity
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First cycle
loss capacity
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Altech’s alumina coating technology

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Graphite Particle
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Prevents SEI and Lithium loss

nm alumina coating

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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Reduced First Cycle Lost Capacity
Increased
Battery Life Potential
80%
reduction
first cycle
Life of Battery Extension loss capacity
Number of Cycles
Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
Capacity
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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2 nm continuous
alumina coating
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Altech alumina coating technology

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Current attempts at alumina coating

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Under the
Electron
Microscope
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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• Breakthrough alumina coating technology

• Coating graphite particles with nano layer HPA

• Potential to reduce the “first cycle” lithium loss

• Game changer if successful

• Potential to increase energy density by 8%

• Potential to increase Li-ion battery life by 20-30%

• Final test work in progress

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Battery
Material
Coating
Technology
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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• Pre-feasibility battery materials coatings plant

• Schwarze Pumpe, Saxony State, Germany

• State where EV’s and battery plants are located

• Option to purchase industrial site

• Anode alumina coating

• Strong interest in Europe

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Battery
Materials
Coating Project
Germany
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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• Collaboration agreement with Ferroglobe

• Leading Li-ion battery Si supplier

• Increased Si - future in Li-ion batteries

• Volume change, low initial Coulombic Efficiency are roadblocks

• Alumina coating of silicon seen as long-term solution

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Collaboration
Agreement
with
Ferroglobe
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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• Europe major battery industry

• Capacity of 147 GWh by 2024

• Stringent 2020 EU CO2 emission (95g/km)

• Push to EVs by European car manufacturers

• Less reliant on Asia

• VW retooling 16 factories

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Europe’s Push
for Battery
Industry
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Li-Ion Battery Cell Capacity - Europe

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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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• O

• Sapphire gemstone from alumina (Al2 3)

• Synthetic sapphire – hard as diamond

• 99.99% (4N) purity or greater

• Smelter Grade Alumina (SGA) ~ 99.5% Bayer Process uses sodium hydroxide (NaOH)

• Sodium impurity is a problem for downstream users

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What is
HPA?
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Smelter Grade High Purity Alumina Alumina SGA 99.5% HPA 99.9% (3N) US$400 per t US$6,000 per t US$9,000 per t

Our Target Business

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High Purity Alumina HPA 99.99% (4N) US$15,000 per t US$40,000 per t

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High Purity Alumina HPA 99.999% (5N) >US$50,000 per t

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High Price
for Purity
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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HPA in LEDs & Lithium Ion Batteries

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LEDs
Sapphire Furnace (2,000 [o ] C) Sapphire Crystal Boule Sapphire Wafer
Nano Powder
Separator Coatings LITHIUM ION BATTERIES
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Sweeping the World
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Separator (temp
protection)
Cathode (Dendrite
Li+ Li+ Li+ Li+
Li+ Li+ Li+ Li+ growth) HPA used in
-
Li+ Li+ Li+ Li+ Li ion
Anode (first cycle loss Li+ Li+ Li+ Li+
capacity & dendrite Batteries
Li+ Li+ Li+ Li+
growth) Li+ Li+ Li+ Li+
Graphite Negative Cathode Positive
Separator
Electrode Electrode
Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
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• Separator + -

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Solid state electrolyte

Liquid electrolyte

2-3 times more HPA expected

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HPA in future
solid state
batteries
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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• Micro chip semi conductors

• High performance catalysts

• Purity grinding media

• High performance ceramics

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Other Uses
of HPA
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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• From 30k tpa to 272,ktpa by 2028

• LIB separators 68%

• LEDs demand 32%

Source: CRU Consulting

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HPA world
Demand
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Source: CRU Consulting

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20k tpa shortfall

50k tpa shortfall

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Potential
HPA supply
shortage
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Sumitomo Chemicals
(Japan) 3,020
Others (15), 3,570
Sasol
Huantou, 800 (South Africa)
Dailian Rall, 600 1,800
Current HPA
Nippon Light Metal,
1,100
producers
Baikowski (France) Hebei Pengda (China)
1,200 3,000
Xuancheng Jing Rui Zibo Xinfumeng
(China) 1,200 (China) 2,500
Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
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Current HPA Producers
Alumina Alumina Aluminium
Refinery Smelter Dissolution
Bauxite Smelter Grade Alumina
99.5% Aluminium Metal 99.99% (4N) Altech’s
~US$3,000 per tonne HPA disruptive
technology
ALTECH HPA PLANT
One Single Process Step
Kaolin 99.99% (4N)
(aluminous clay) HPA
Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
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• Very low iron (Fe) due to weathering

• • 12.7Mt JORC Mineral Resources^

• Meckering, Western Australia

%	Bauxite Darling Range*	Altech **Kaolin ***
Al2O3	34.5	30.0
SiO2	21.5	57.9
Fe~~2~~O~~3~~	21.2	0.4
**TiO2 **	2.00	0.7
**K2O **	0.24	0.2
NaO	0.005	0.01

• ^ Measured Resources 1.5Mt @ 30% Al2O3, Indicated Resources 3.3Mt @ 30% Al2O3, Inferred Resources 7.9Mt @ 29.1% Al2O3 Typical Mean Analysis

• ^ JORC (2012) Mineral Resources (refer ASX Announcement 11 October 2016); the Company is not aware of any new information or data that materially affects the information included in this announcement and confirms that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.

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-
Low Impurity
Kaolin
Feedstock
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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• Mining approval granted

• Works approval granted

• Simple free dig mining

• Campaign mining, 2 months - 3 years feed

• Then just sea container loading operation

• 50,000 tpa kaolin per annum

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Meckering
all approvals in
place
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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• Chemical-zoned industrial park

• 60% lower operating costs

• HCl plant nearby

• Close to end markets

• 5-10 year corporate tax free

• No radioactive waste

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HPA Plant
Johor,
Malaysia
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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HCl
Plant
Leach & Neutralisation
Fine
Sand
Kaolin
Calcination
Roasting &
Calcination Kaolin Kaolin
Beneficiation Receival
HPA Finishing Plant
Final Product
Administration Control Room Lab
TNB
Main
Substation
Car Park
Station Gatehouse
Proposed HPA
Gat Plant
e
Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
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Altech’s Patented HPA Process

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Sea Container To Fremantle Campaign Mining MECKERING
Shipping
Sea Container Meta Kaolin
Flash
JOHOR Dryer 700 C Hydrochloric Acid
Screening Filter Cooler
Calciner Milling HCl Gas
Polishing
Screening
Filter Filter
Drum Scrubber > 0.3mm
Acid Leach Stage 1 Crystalisation
Sales
Limestone & Lime
Neutralised
99.99% HPA Battery Grade Option Cooler J e t Mill SprayDryer Silica Residue Centrifuge
Beads
Packaging 1600 C Sales Filter Neutralising Tank CrystalsAl Cl3
Cooler
Tunnel Kiln Pelletiser Feed Tank
HCl Plant
Quartz Oversize HCl HCl Gas water HCl water
Alpha Al2O3 Gas
1250 C 700 C Centrifuge Centrifuge
Screen HX
Cooler Calciner Roaster Al Cl3 Al Cl3
Bead Mill Wash Stage 3 Polishing Stage 2
Crystalisation Filter Crystalisation
HCl Wash HCl Wash
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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• Chemistry by Swiss in 1900s

• USA & Alcoa developed further 1980’s

• No demand for HPA in 1980’s

• New HPA growth demand (LEDs LIBs)

• Altech applied chemistry to Meckering

• Very successful, disruptive, lowest cost

• One patent granted, 8 pending

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Established
Proven
Chemistry
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Our Advantages

1. We own our feedstock

2. Main reactant HCl re-used

3. Plant in low cost country (Malaysia)

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Source: Persistence Market Research “High Purity Alumina Market – Global Industry Analysis and Forecast 2016-2024” Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Bottom
Quartile
for Op Costs
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• Certified as “Green” project

• Centre of International Climate and Environmental Research (CICERO)

• Good environmental governance

• Doesn’t use Al metal

• 46% reduction of greenhouse gases

• Uses 41% less energy than conventional

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Altech’s
Green
HPA process
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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• 10 year exclusive off-take agreement

• Mitsubishi has downstream customers

• Altech gets paid ex gate

• Price is at prevailing market price

• Strategic focus for Mitsubishi

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Mitsubishi
10 year
-
off take
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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SMS group
Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
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• SMS group – German EPC contractor

• Lump sum turn key contract

• Completion and cost risk

• Throughput guarantee

• Process & quality guarantee

• Committed US$ 15 mil equity

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Lump Sum
Turn Key
Contract
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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• For SMS 100% throughput guarantee

• Lots of “fat” in design assumptions

• Using 79% instead 90% Utilisation

• Using 60% instead 90% Recovery

• Using 30% instead 34% head grade

• 3 Yr ramp up instead of 2 Yr

• Strong possibility of 6,000 tpa

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Aiming to
-
Under promise
-
Over deliver
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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• Pre-tax NPV7.5 US$ 505 million

• Payback (full rate) 3.9 years

• IRR - 22%

• EBITDA US$ 76 million p.a.

• Capital cost US$ 298 million*

• Production Costs - US$ 8.55 /kg

• LT Sale Price - US$ 26.9/kg

• Gross Margin – 68%

• Pre tax, pre financing equity model

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Economics
FIDS Equity
Model
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Melewar
10% SMS
Board Mge
3%
Quality
Major
D Balaton /Delphi
19%
Shareholders
Others
64%
Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Senior Debt by
-
KfW IPEX Bank
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• Senior debt funding - KfW IPEX-Bank

• German state owned bank

• Total debt of US$ 190 million

• US$ 170 million export credit finance

• 50% of plant – German suppliers

• Low interest, long tenure

• 18 months of due diligence

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Senior Debt
of US$190m
Completed
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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• Commenced listed green bond process

• Target raising of US$144 million

• US$100 million as project debt

• Balance as prepaid coupon interest

• Bonds to be listed in Frankfurt

• Five year term

• SPV as lender, 2 lien to KfW IPEX-Bank

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Secondary
–
Debt Listed
Green bonds
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Use of Funds (US$m) Source of Funds (US$m) Plant Capex $298 KfW Contingency $ 28 KfW Senior Loan $190 Debt Res & WC $ 46 Sec Debt (Green Bonds) $ 90 Fees & Costs $ 41 SMS Equity Contribution $ 10 Less Spent ($ 23) Project Equity (Sell 49%) $100 ^ Total Use of Funds $390 Total Funding $390

• US$ 76 m of cash reserves required by KfW for project protection

• ^ Altech Advanced Materials AG has option to purchase 49% for US$100m

• ^ Open to other strategic investors or JV partners

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Use and
Source of
Funds
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Altech Chemicals Altech Advanced
Australia Limited (ASX:ATC) Materials AG
Germany
51% 49%
Project Co
Altech Chemicals US$100M
Australia Pty Ltd
Australia
100% 100%
Equity sell
Australia Malaysia
Altech Altech
down of 49%
Meckering Pty Ltd Chemicals Sn Bd
Kaolin Contract for US$100m
Land HPA Chemical
Meckering Meckering 30 Yr Lease Plant
Tenement Land
Meckering
Plant
Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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• Environmental approvals completed

• All permitting approvals completed

• Operating licence granted

• Construction commenced

• Ground conditions known

• Contractors known

• Stage 1 and 2 completed

• Running start when project finance done

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Removed
Greenfield
Risks
Construction
Commences
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Site works
Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”
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Maintenance Building
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Maintenance Building
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Electrical Substation
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Altech - Development leader in HPA

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Column1
Accelerate Resources
AX8 WA (Tambellup)
(kaolin to HPA)
Alchemy Resources
ALY NSW (West Lynn)
(kaolin to HPA)
Alpha HPA
A4N Qld (Gladstone) n/a n/a n/a
(Solvent Extraction)
Altech Chemicals
ATC WA (Meckering)
(kaolin to HPA)
Andrometa
ADN SA
(kaolin to HPA)
FYI Resources
FYI WA (Cadoux)
(kaolin to HPA)
Peak Minerals
PUA WA (Yendon)
(kaolin to HPA)
King River
KRR WA n/a n/a
(Solvent Extraction)
LavaBlue
n/a QLD (Lava Plains)
(kaolin to HPA)
VeccoGroup
n/a QLD (Arizona)
(kaolin to HPA)
Zeotech
ZEO QLD (Abercorn)
(kaolin to HPA)
ASX Code Deposit location JORC Resource Scoping or PFS Study Pilot Plant JORC Reserve DFS Study Offtake Arrangement HPA Plant Engineered Site for Plant Purchased EPC Contractor Appointed Lump sum fixed price Mine Permitted Plant Contruction Commenced Final Investment Decision Senior Project Finance Secured Plant Construction commenced Balance of finance/equity
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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Right Place Right Time Right Feedstock Right Technology

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Thank you

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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”

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Forward Looking Statements

Forward-looking Statements

This announcement contains forward-looking statements which are identified by words such as ‘anticipates’, ‘forecasts’, ‘may’, ‘will’, ‘could’, ‘believes’, ‘estimates’, ‘targets’, ‘expects’, ‘plan’ or ‘intends’ and other similar words that involve risks and uncertainties. Indications of, and guidelines or outlook on, future earnings, distributions or financial position or performance and targets, estimates and assumptions in respect of production, prices, operating costs, results, capital expenditures, reserves and resources are also forward looking statements. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions and estimates regarding future events and actions that, while considered reasonable as at the date of this announcement and are expected to take place, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of our Company, the Directors and management. We cannot and do not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and readers are cautioned not to place undue reliance on these forward-looking statements. These forward looking statements are subject to various risk factors that could cause actual events or results to differ materially from the events or results estimated, expressed or anticipated in these statements.

The mezzanine debt facility terms referred to in this ASX announcement are indicative in nature; are non-binding; and contain the general terms of proposed a transaction. Any future commitment for the facility will be subject to and is contingent upon all internal approvals of the financial institution as well as the completion of detailed due diligence (including but not limited to HPA market, legal and technical due diligence) and legally binding documentation and senior lender agreement. There is no certainty that the mezzanine project debt finance will be approved or that a transaction will be concluded based on what is contemplated in the term sheet. The Company makes no representations or warranties whatsoever as to the outcome of the mezzanine debt finance process.

Competent Persons Statements – Meckering Kaolin Deposit

The information in this announcement that relates to Mineral Resources and Ore Reserves is extracted from the report entitled “Maiden Ore Reserve at Altech’s Meckering Kaolin Deposit” released on 11 October 2016; the report is available to view on the Company’s website www.altechchemicals.com. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources and Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

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Altech Chemicals Limited ASX : “ATC” FRA : “A3Y”