Gladstone manufacturer Alpha HPA says booming global investment in artificial intelligence, semiconductors and electric vehicle batteries is driving unprecedented demand for its high-purity aluminium materials.

The company now holds letters of intent covering more than 12,000 tonnes of annual product demand, exceeding its Stage Two facility’s planned production capacity of 10,430 tonnes per year.

“The global build-out of AI infrastructure is creating enormous demand for these specialised materials that help semiconductors run faster, cooler and more efficiently,” Alpha HPA (ASX: A4N) managing director Rob Williamson said

“As artificial intelligence systems become more powerful, the chips that power them generate more heat.

“Our materials are increasingly being used to improve thermal management, semiconductor packaging and manufacturing processes that are essential to the next generation of AI technology.”

Alpha HPA says it is evaluating growth opportunities beyond the current expansion program at Gladstone.

Alpha HPA is producing commercial quantities of high-purity materials at its Stage One facility there while construction continues on the much larger Stage Two expansion, scheduled for completion late next year.

The company has secured a new letter of intent from a South Korean customer for up to 300 tonnes a year of high-purity alumina products used in semiconductor thermal fillers.

Another agreement covers up to 180 tonnes a year of high-purity alumina hydrate for specialist catalyst applications, while a third commitment is for up to 5000 tonnes annually of high-purity aluminium products used in advanced lithium-ion batteries.

Mr Williamson said demand from semiconductor manufacturers continued to accelerate as technology companies invested hundreds of billions of dollars globally in AI infrastructure.

“The scale of investment flowing into AI infrastructure globally is creating demand for specialised materials that simply weren’t required a decade ago. What we’re seeing now is customers looking to secure long-term supply of these materials as semiconductor production expands,” he said.

“We are seeing growing demand across multiple semiconductor applications, including advanced packaging, thermal interface materials, chip manufacturing and high-bandwidth memory used in AI systems.

“Our customers are increasingly seeking ultra-high purity materials with extremely low levels of uranium and thorium impurities. These impurities emit alpha radiation that interferes with advanced semiconductors.

“Our process technology allows us to produce the lowest alpha-radiation materials available anywhere in the world.”

Beyond semiconductors, Alpha HPA is supplying materials into battery technologies, direct lithium extraction (DLE), ceramic tooling, synthetic sapphire glass, catalysts and pharmaceutical applications.