Alpha HPA Accelerates Stage 2 Build Amid Rising Semiconductor Demand
Alpha HPA Limited has kicked off major civil works for its HPA First Project Stage 2 while securing strong sales momentum in the semiconductor sector, supported by expanded Letters of Intent covering over 60% of Stage 2 capacity.
- Major civil works commenced for HPA First Project Stage 2
- Letters of Intent secured for 62% of Stage 2 production capacity
- Sales and test orders build to 390 since May 2024
- Alpha Sapphire records first sapphire wafer sales for semiconductor qualification
- $30 million sales support facility extended to August 2025
Construction Milestone for Stage 2
Alpha HPA Limited has marked a significant step forward in its growth trajectory with the commencement of major civil works for the HPA First Project Stage 2 at its Gladstone site. This phase aims to establish the world's largest single-site facility dedicated to producing high purity aluminium materials, a critical input for advanced semiconductor manufacturing and other high-tech applications.
The project team has already issued the first construction drawings and mobilised contractors, with offsite fabrication of long-lead equipment and large-scale tank fabrication underway. Early contractor involvement is helping optimise the schedule and constructability, reflecting a strategic approach to managing this complex build.
Robust Demand and Market Validation
On the commercial front, Alpha HPA continues to consolidate its position as a preferred supplier of high purity alumina (HPA) and related products, particularly for the semiconductor sector. The company has now built a substantial pipeline of 390 test and sales orders since its final investment decision in May 2024. This momentum is underpinned by strong inbound demand driven by growth in AI, data centers, and power semiconductors.
Letters of Intent (LOIs) now cover approximately 62% of the Stage 2 production capacity, reflecting deepening customer commitments following extensive qualification processes. These LOIs form the basis for forthcoming commercial sales contracts, signaling confidence in Alpha’s proprietary solvent extraction technology and product quality.
Product Innovation and Expansion
Stage 1 operations remain fully utilised, producing high purity aluminium nitrates, alumina hydroxides, and densified HPA tablets, with plans underway for a capital-light expansion to meet increasing demand, especially in semiconductor polishing applications. Additionally, Alpha has initiated a minor capital program to develop in-house nano alumina slurry capabilities, targeting the lucrative chemical mechanical polishing (CMP) market from early 2026.
Meanwhile, Alpha Sapphire, the company’s synthetic sapphire subsidiary, has recorded its first sapphire wafer sales as part of semiconductor qualification efforts. The sapphire growth quality continues to improve, with recent runs achieving the highest quality to date, supporting the emerging gallium-nitride-on-sapphire semiconductor market. The $30 million sales support facility from QIC Critical Minerals and Battery Technology Fund has been extended to August 2025, providing financial flexibility for this growth segment.
Financial Position and Outlook
Alpha HPA reported operating cash outflows of AUD 9.4 million and investing outflows of AUD 26.5 million for the quarter, reflecting ongoing project development and expansion activities. The company ended the quarter with a strong cash balance of AUD 102.3 million, supporting an estimated 10.8 quarters of funding at current operating levels. Related party payments amounted to AUD 587,190, consistent with prior quarters.
Looking ahead, Alpha continues to advance the Alpha Polaris Project in Canada, exploring the next large-scale commercial deployment of its technology to meet forecast demand across semiconductor and lithium extraction sectors.
Bottom Line?
With Stage 2 construction underway and strong market traction, Alpha HPA is poised to scale production and capitalize on booming semiconductor demand.
Questions in the middle?
- How quickly will Letters of Intent convert into binding sales contracts?
- What are the key risks to the Stage 2 construction timeline and budget?
- How will Alpha Sapphire’s growth in semiconductor wafers impact overall revenue mix?
