Cadoux Advances HPA FEED and Minhub Feasibility Amid Growing Market Demand

HPA Project Engineering and Market Momentum

Cadoux Limited (ASX:CCM) has pushed forward its High Purity Alumina (HPA) project with the completion of front-end engineering design (FEED) for its Kwinana small scale production and demonstration plant (SSP). The FEED phase has been pivotal in refining third-party equipment integration and optimising the process flowsheet, aiming to deliver consistent 4N to 5N purity alumina tailored for lithium-ion battery separators and LED substrates. Vendor testwork has confirmed improved impurity rejection and higher yields, reducing reagent consumption and tightening quality control, thereby de-risking scale-up and supporting a robust commercial process.

These engineering milestones come as global HPA demand is forecast to more than double by 2030, driven primarily by electric vehicle (EV) batteries and advanced electronics requiring ultra-high purity materials. Cadoux’s positioning in Australia, a stable jurisdiction outside Asia-Pacific’s dominant production hubs, offers a strategic advantage amid supply chain diversification trends. The company’s recent efforts to align product specifications with emerging battery market demands have strengthened its commercial engagement, with offtake discussions progressing alongside technical sample deliveries to European partners. This builds on earlier momentum reported in the company’s HPA Project Milestone Grant and prior engineering updates.

SAFELOOP Consortium Participation Enhances Battery Development

Cadoux’s role as a key HPA supplier within the SAFELOOP European battery consortium underscores its integration into next-generation lithium-ion battery innovation. SAFELOOP aims to develop safer, longer-lasting batteries for heavy-duty EV applications, targeting a 15% increase in cycle life by 2030. Cadoux presented at the consortium’s annual general assembly in Türkiye, advancing commercial discussions with major battery manufacturers, including partners supplying the US Department of Defence. The project is backed by €5 million in Horizon Europe funding and focuses on materials sourced from recycled and primary raw materials, including Cadoux’s HPA doping in cathodes, anodes, and separators.

The consortium’s work on enhanced battery separators coated with Cadoux’s premium HPA has already achieved qualification, with ongoing development of non-flammable electrolytes and advanced electrode materials. These innovations align with growing demand for safer, sustainable EV batteries and reflect Cadoux’s strategic push into high-value downstream applications.

Minhub Rare Earths Processing Nears Feasibility Completion

On the rare earths front, Cadoux’s 50% owned Minhub Operations Pty Ltd is finalising its feasibility study (FS) for a rare earth and mineral sands processing hub in Darwin. The FS targets a 500,000 tonnes per annum heavy mineral concentrate throughput, producing over 10,000 tonnes of total rare earth oxides (TREO), including monazite and xenotime concentrates. The project aims to establish a collaborative processing platform to provide ethical, traceable supply chain alternatives to offshore processing, supporting Australia’s critical minerals strategy.

Minhub has also initiated a scoping study for a downstream heavy rare earths project focusing on xenotime concentrate, which could yield a high-value mixed rare earth product containing dysprosium and terbium, elements commanding significant ex-China pricing premiums. This follows recent market moves such as Lynas Rare Earths’ US$110/kg floor price agreement for NdPr rare earths and the US$2.8 billion acquisition of Serra Verde Group by USA Rare Earth, highlighting the strategic importance of diversified supply chains for magnet feed rare earths. Minhub’s positioning to capitalise on these trends is reinforced by ongoing technical and commercial discussions with Gippsland Critical Minerals and other Murray Basin developers to secure feedstock pipelines.

Funding, Trademark, and ESG Initiatives Support Growth

Cadoux received a $600,000 milestone grant from the Western Australian Government’s Investment Attraction Fund, contributing to the development of the Kwinana SSP plant. The company ended the quarter with $1.97 million in cash, including $1.14 million held in escrow related to a potential corporate transaction. Cadoux also secured the premiumHPA® trademark to differentiate its high-quality product in an increasingly competitive market, reinforcing its commitment to quality and customer assurance.

Environmental, social, and governance (ESG) efforts remain a core focus, with Cadoux maintaining a strong industry standing and actively participating in sector-wide ESG working groups. The company aligns its reporting with global frameworks such as the World Economic Forum and the United Nations Sustainable Development Goals, embedding sustainability into its operational and strategic decisions.