ABx Group has released an economic assessment showing its ALCORE process can produce hydrogen fluoride at significantly lower costs than traditional fluorspar methods, potentially reshaping Australia's fluorine chemical supply chain.
- ALCORE process operating costs estimated at US$1,000–1,600 per tonne
- Potential 30–60% operating margin based on current hydrogen fluoride prices
- ALCORE uses aluminium smelter bath, a by-product, reducing reliance on imported fluorspar
- Pilot plant under construction in Tasmania with Rio Tinto and government support
- Could catalyse a domestic fluorochemical industry and improve supply security
ALCORE Process Offers Significant Cost Advantage for Hydrogen Fluoride
ABx Group Limited (ASX:ABX) has unveiled an indicative economic assessment of its ALCORE process, a novel technology that produces anhydrous hydrogen fluoride (AHF) from aluminium smelter bath, a by-product of aluminium smelting. The assessment estimates operating costs between US$1,000 and US$1,600 per tonne, positioning ALCORE in the lowest quartile for hydrogen fluoride production costs globally. This compares favourably to the conventional acidspar process, which carries operating costs ranging from US$2,000 to US$2,700 per tonne, depending on fluorspar prices.
Hydrogen fluoride is a critical chemical used in lithium-ion batteries, semiconductor manufacturing, and aluminium production. Currently, Australia imports all its fluorine products, exposing key industries to supply risks. By leveraging aluminium smelter bath, ALCORE could reduce Australia's dependence on imported fluorspar, which is facing supply constraints and rising prices worldwide.
Economic Assessment Highlights Robust Margins and Supply Chain Benefits
The ALCORE process’s operating margins are projected between 30% and 60%, depending on the cost of the aluminium smelter bath feedstock. Even under a high-cost bath scenario, ALCORE’s operating costs remain approximately US$400 per tonne lower than the acidspar process at current fluorspar prices. This margin advantage is underpinned by the significantly lower cost of aluminium smelter bath compared to fluorspar, with ongoing discussions indicating potential for securing feedstock at favourable prices.
Industry expert Chris Potgieter from BFluor Chemicals emphasised the strategic potential of ALCORE, noting it could catalyse the development of an Australian fluorochemical industry by providing a domestic source of hydrogen fluoride and downstream chemicals like aluminium fluoride, essential for aluminium smelting in a circular economy framework.
Pilot Plant Progress and Strategic Partnerships in Tasmania
ABx is advancing a continuous pilot plant in Bell Bay, Tasmania, supported by Rio Tinto and the Tasmanian Government. The pilot aims to refine reactor design and process conditions while producing saleable hydrogen fluoride for customer evaluation. The project’s progress has been steady, with construction underway and further updates expected soon.
This pilot plant builds on ABx’s broader clean fluorine chemical ambitions, complementing its rare earths and bauxite projects. The company’s integrated approach to materials critical for a cleaner future is gaining momentum, with ongoing customer engagement and validation activities across its portfolio.
Strategic Importance Amid Global Fluorspar Supply Challenges
Global fluorspar production is heavily concentrated in China and Mexico, with China’s exports having declined by 80% since 2010. The fluorspar market faces a looming supply deficit forecast by 2035, driving prices upward at a steady rate over decades. Fluorspar’s designation as a critical mineral by multiple governments underscores the strategic imperative to develop alternative sources.
Hydrogen fluoride serves as the essential intermediate between fluorspar and fluorine chemicals, and its production via the ALCORE process could offer a more secure and cost-effective supply chain. The aluminium smelter bath used by ALCORE is currently a surplus by-product with limited market, creating a unique opportunity to turn a waste stream into a valuable feedstock.
Bottom Line?
ABx’s ALCORE process could disrupt fluorine chemical supply in Australia, but success hinges on pilot plant outcomes and securing low-cost feedstock.
Questions in the middle?
- Will ALCORE pilot plant results validate the projected operating costs and margins at commercial scale?
- Can ABx secure long-term, low-cost aluminium smelter bath supply agreements to sustain competitive advantage?
- How quickly might ALCORE catalyse the development of a domestic fluorochemical industry given global fluorspar supply pressures?