Andromeda Metals Limited Achieves Breakthrough in High Purity Alumina (HPA) Production
- Noel Ong
- May 3
- 5 min read
Updated: 4 days ago
Announcement:
A new chapter in the production of high purity alumina (HPA) is unfolding in South Australia, with Andromeda Metals Limited (ASX: ADN) achieving a significant milestone. The company has successfully produced ultra-high-purity 4N HPA using a novel, cost-effective, and low-carbon process. This breakthrough positions Andromeda at the forefront of the global HPA market.
Travelling at a market capitalisation of AUD $68M, is Andromeda Metals worth a visit to look at getting into the market? Alpha HPA Limited (ASX: A4N) has a market capitalisation of just over AUD $1B.
Purity Confirmed—99.9985%
Figure 1 – Andromeda’s end-to-end process for the production of HPA from GWP.
Lab-scale testing using refined kaolin from the Great White Project (GWP) resulted in HPA with a confirmed purity of 99.9985%, independently validated by EAG Eurofins USA and CSIRO, Australia's national science agency.
This achievement is the result of over seven years of research and development, culminating in a proprietary flowsheet that sets a new benchmark for HPA production.
A Cleaner, Smarter Process
Andromeda’s novel process avoids many of the high-cost, high-emission steps used in traditional HPA production:
No need for hydrochloric acid (HCl) crystallisation or re-leaching at extreme conditions
No calcination above 1250°C; the product can be calcined starting from 700°C
Estimated 68% reduction in carbon emissions, producing less than 4 tonnes of CO₂ per tonne of HPA compared to 12.3 tonnes from conventional methods
Andromeda’s approach combines innovation with environmental responsibility, giving the company a significant edge as global demand grows for low-carbon critical minerals.
South Australia’s Renewable Advantage
The environmental benefits of Andromeda’s process are amplified by South Australia’s electricity grid, which is powered by more than 70% renewable energy. This offers the potential to further reduce the carbon footprint of HPA production from the Great White Project.
A Critical Mineral for Future Technologies
High Purity Alumina is an essential material used in:
LED lighting
Semiconductor manufacturing
Lithium-ion battery separators
High-tech ceramics and synthetic sapphire
According to market forecasts, global demand for HPA is expected to outstrip supply by 45% by 2028. At present, approximately 88% of global HPA is produced using energy-intensive aluminium metal hydrolysis. Andromeda’s kaolin-based process offers a more sustainable and cost-effective alternative.
Next Steps for Commercialisation
With proof-of-concept now achieved, Andromeda will proceed with:
A Scoping Study to assess project economics
Customer engagement to refine product specifications and formats
Investigating government funding opportunities
Development of a pilot plant to test the process at a semi-continuous, industrial scale
Executive Perspective
Sarah Clarke, Acting CEO of Andromeda Metals, commented:
“While our primary focus remains on the Great White Project, the successful production of HPA opens up a high-value, complementary opportunity. Producing 4N HPA at lower cost and carbon intensity compared to traditional processes is a strong proposition for manufacturers. We are excited to work closely with future HPA customers to bring this opportunity to life.”
Concluding Comments from Samso
Andromeda’s successful test work marks a transformative step towards sustainable, cost-competitive HPA production. With its high purity product, environmentally efficient process, and access to renewable power, the company is well-positioned to enter the growing critical minerals market.
Anyone who has been following the Andromeda story would know that Andromeda Metals has been a frequent guest on Coffee with Samso, and there have been a lot of conversations on the myriad of products that come under Andromeda. The current announcement has obviously given shareholders something to cheer about (Figure 2), but the long-term shareholders will be looking for more uplift (Figure 3).
Figure 2: Andromeda Metals Limited share price chart from 2023. (source: commsec)
The rise and fall of Andromeda Metals have been legendary, but I still think that there are merits that could bring back some glory days, but that is going to take a lot of patience and hard work.
Figure 3: Andromeda Metals Limited share price chart from 2020. (source: Commsec)
The HPA Conversation
The HPA conversation was brief, and at that time, I suppose things were very premature or at a very early stage of any development.
This strategic move builds on the strength of the Great White Project and expands its commercial potential. What I like is that this has been a long-term investment, with the release mentioning that this latest work has been over 7 years.
The HPA story is really something that is thrown around a lot, and it is very promotive when companies mention it. The ability to produce HPA stock is a fantastic opportunity for companies, especially those in the ASX.
My Samso Insight on Alpha HPA Limited, entitled "Exploring the Potential of High Purity Alumina: A Review of Alpha HPA Limited (ASX: A4N)", was really a look at the top end of where companies that are in the HPA sector should be. could be? or is? It is very hard to see where Andromeda could be now because we do not have another example of a story at this level of the business.
There are hopeful companies in the HPA market, but I cannot see them making it. As I have mentioned, I have had several conversations with Andromeda in the past 5 years, and I do like what they may have, but I do like to see more substance develop from company announcements.
What they currently have in the portfolio does make me think that Andromeda may actually be better, but that may be a reflection of my belief from past conversations, but the reality presently may bring a different outcome.
I have not been following the company recently, but this will definitely put them on my radar screen again. As usual, take time to DYOR, and Happy Investing.
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