Andromeda Metals Receives First HPA Patent in South Africa
Key Takeaways
- Andromeda has its first HPA patent, granted in South Africa, covering the proprietary process at the core of its HPA Project.
- The patent covers South Africa only, with applications in other jurisdictions still progressing, so it is not global protection.
- Continuous pilot-scale production reached 99.9986% (4N) purity on 24 August 2026, validating the process the patent protects.
- The Traxys North America Heads of Agreement of 19 August 2026 sets a US supply pathway but is not a binding offtake contract.
- The 2025 Scoping Study estimates a pre-tax NPV10 of approximately A$1.48 billion and average annual EBITDA of approximately A$247 million, but the announcement gives no timelines or funding details.
First patent granted for Andromeda’s proprietary HPA process
Andromeda Metals (ASX: ADN) has had its first HPA patent granted by the Republic of South Africa, covering its proprietary process to produce High Purity Alumina (HPA) and/or Smelter-Grade Alumina (SGA). The announcement was dated 6 October 2026.
The South African patent is the first in a portfolio of national patent applications derived from the company’s international Patent Cooperation Treaty (PCT) application. It covers Andromeda’s novel alumina production process, which underpins the company’s HPA Project.
The patent has been granted to the company’s wholly owned subsidiary, Andromeda Technologies Holdings Pty Ltd. For investors, this matters because protecting intellectual property is a core part of how the company plans to commercialise its technology.
Sarah Clarke, Acting CEO
“The granting of the first national patent is an important milestone in the development of Andromeda’s High Purity Alumina business and validates the originality of our proprietary technology…”
Clarke added that the patent “strengthens Andromeda’s competitive position as we advance our HPA Project”.
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Building momentum: pilot results and US supply pathway
The patent follows two recent announcements, which together show how the HPA story has been developing:
- 24 August 2026: Andromeda reported successful continuous pilot-scale HPA production at a measured purity of 99.9986% (4N).
- 19 August 2026: Andromeda signed a strategic HPA Supply Heads of Agreement with Traxys North America, to advance a strategic pathway for the supply of HPA into the United States.
A Heads of Agreement is a preliminary understanding, not a binding offtake contract. It marks a pathway, not a locked-in sales commitment.
The process itself is the result of over 8 years of research, testing and process optimisation, using kaolin sourced from the Great White Project.
Put together, the technology, the pilot validation and the customer pathway are now converging, with the patent adding a layer of formal protection.
What is high purity alumina and why do patents matter?
High purity alumina is an ultra-refined form of aluminium oxide. The announcement describes HPA as a critical material used in:
- Lithium-ion batteries
- LEDs
- Semiconductors
- Synthetic sapphire
- Advanced ceramics
Andromeda’s proprietary technology forms the foundation of its strategy to participate in the growing global market for HPA.
So why does a patent matter? A patent protects a novel process from being copied, which supports a company’s commercialisation strategy. Management describes protecting intellectual property as “a key component of our commercialisation strategy”.
One caveat is worth noting. This grant covers South Africa only. The company continues to progress the remaining applications in other jurisdictions, so you should not read it as global protection.
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HPA Project potential and next steps
The company pointed to its 2025 HPA Scoping Study (released 18 September 2025), which it said highlights the potential scale and value of the HPA opportunity. Andromeda noted that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed.
A scoping study is an early-stage assessment, so these are study estimates rather than forecasts of delivered results.
| Metric | Scoping Study figure | Why it matters |
|---|---|---|
| Staged development | Up to 10,000 tonnes per annum | Indicates the potential scale assessed |
| Pre-tax NPV10 | Approx. A$1.48 billion | Net present value of projected pre-tax cash flows, discounted at 10% |
| Average annual EBITDA | Approx. A$247 million | Earnings before interest, tax, depreciation and amortisation, a measure of operating profit |
Looking ahead, Clarke said the company looks forward to progressing additional patent applications while advancing:
- Remaining patent applications in other jurisdictions, with shareholder updates as material developments occur
- Pilot-scale testing
- Customer engagement
- Project development activities
The announcement does not disclose timelines, specific patent jurisdictions or funding details.
Management said the patent supports its effort to “seek to establish a new, low-cost and low-carbon pathway for producing HPA from kaolin.”
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