ABx’s ALCORE Pilot Plant Construction Gains Momentum with Civil Works Underway

Civil Construction Kicks Off at Bell Bay

ABx Group Limited’s (ASX:ABX) 83%-owned ALCORE subsidiary has reached a significant milestone with the commencement of civil works for its hydrogen fluoride pilot plant at the ALCORE Technology Centre in northern Tasmania. Following the receipt of the building permit, foundational works, covered process areas, and supporting infrastructure are underway adjacent to Rio Tinto’s Bell Bay aluminium smelter.

This development marks a tangible step forward in demonstrating ALCORE’s proprietary process that converts a by-product of aluminium smelting into hydrogen fluoride; a critical precursor chemical for battery production, semiconductors, and other high-tech applications. Notably, Australia currently imports all its hydrogen fluoride, making this project strategically important for domestic supply security.

Electrical Upgrades and Equipment Arrivals Progress

Alongside civil works, TasNetworks is upgrading the site’s power infrastructure, including a new substation and high-voltage supply enhancements. ALCORE is advancing the installation of a main switchboard and downstream electrical systems to support pilot plant operations.

Equipment deliveries are on schedule, with key items such as a process water treatment plant, air compressors, chemical storage containers, and laboratory apparatus already on site. The company has completed formal Hazard and Operability (HAZOP) studies for major process modules and is implementing recommendations to finalise design and installation plans.

Strategic and Economic Significance of ALCORE’s Hydrogen Fluoride

Hydrogen fluoride is vital for producing fluorine chemicals used in lithium-ion batteries, aluminium fluoride for smelting, refrigerants, and fluoropolymers. The global market exceeds US$3 billion annually, but Australia’s lack of domestic production creates supply vulnerabilities, especially given China’s dominance in fluorspar mining and recent export licensing controls.

ALCORE’s process leverages aluminium smelter by-products rather than imported fluorspar, potentially placing it in the lowest quartile of production costs globally. ABx estimates operating costs between US$1,000 and US$1,600 per tonne, implying a 30-60% operating margin based on current hydrogen fluoride prices. This cost competitiveness could catalyse a domestic fluorochemical industry and reduce strategic supply risks.

Environmental and Regulatory Steps Continue

Environmental approvals are progressing with ALCORE responding to requests for further information from EPA Tasmania following the submission of its Environmental Effects Report earlier in 2026. The company is coordinating construction schedules with regulatory requirements to ensure timely commissioning.

Commissioning is targeted for early Q2 2027, with civil and electrical works expected to complete by late Q4 2026. Major process equipment deliveries will continue through early 2027, followed by staged installation and cold commissioning phases.

Expanding Commercial Opportunities

Beyond hydrogen fluoride, ALCORE is engaging with the global fluorine industry to explore applications in other critical minerals, including rare earth metals processing. The technology’s potential to reduce Australia’s reliance on imports aligns with broader strategic mineral supply initiatives.

ABx’s Managing Director Dr Mark Cooksey emphasised the importance of recent milestones, stating the project’s progress provides a strong foundation for successful commissioning of this world-first technology.