December 15, 2025

This HPA Company Could Be the Lowest-Cost Producer Outside China | Advanced Energy Minerals

36 minutes

In this episode, Howard and Matt speak with Richard Seville, Executive Chairman of Advanced Energy Minerals (AEM), ahead of the company’s planned ASX listing (ticker: AEM).

Chapters

(00:00) Introduction

(05:31) Richard's Path to AEM

(08:18) What HPA Is & Main Uses

(10:42) HPA Market Size & Growth

(13:07) AEM Expansion Plans

(14:48) Customer Qualification Process

(18:11) Manufacturing Process Overview

(21:54) Cost Curve Positioning

(23:21) Low-Carbon Advantage

(25:22) IPO, Capital Structure & Funding

(30:27) Comparing AEM to Alpha HPA

(35:40) Closing Remarks

AEM IPO Prospectus: Drop us an email at [email protected] and we'll send it over.

Strategic Lithium Reserve (SLR) White Paper: https://blog.rkequity.com/2025/12/08/strategic-lithium-reserve/

Richard is best known in the lithium industry for founding and leading Orocobre, taking it from a sub–$25m market cap IPO through project build-out, major corporate combinations, and ultimately to a transaction involving a global major. In this interview, we focus on AEM’s strategy in high purity alumina (HPA)—a niche but important industrial material used in sapphire/LED substrates, semiconductors, and emerging battery applications.

We cover:

- What HPA (4N / 5N purity) is and where it is used in the modern economy

- Market size and growth expectations, including supply dynamics and China’s role

- AEM’s Québec-based brownfield turnaround of an HPA plant acquired out of insolvency

- The company’s current operating status and capacity expansion roadmap (Stage 1 and Stage 2)

- How customer qualification works in HPA markets (including typical timelines)

- AEM’s process overview (hydrometallurgy + calcining steps) and key cost inputs

- The company’s positioning on the global cost curve, including access to low-cost hydro power

- The role of low-carbon intensity in customer decision-making and procurement

- IPO timing, funding history, balance sheet position, and views on future dilution risk

- How AEM compares with other ASX-listed HPA peers, including differences in project stage and financing approach

Sponsors

- Lithium Royalty Corp (TSX: LIRC) - diversified lithium royalty portfolio.

(Website: https://www.lithiumroyaltycorp.com/ | X: https://x.com/Lithium_Royalty)

- USCF Investments - commodity-focused ETFs (e.g., CPER copper, ZSB battery metals, USG gold, SDCI diversified commodities).

(Website: https://www.uscfinvestments.com/ | X: https://x.com/USCFInvestments)

Links

- Read Matt's research blog: https://blog.rkequity.com/

- Sign up for the Lithium-Ion Bull newsletter/Matt's Blogs: https://rkequity.com/

Have a question? Drop us an email: [email protected]

Patreon: https://www.patreon.com/rockstockchannel

Podcast:

Apple Podcast: https://podcasts.apple.com/us/podcast/lithium-ion-rocks/id1457969172

Spotify: https://open.spotify.com/show/0KiMIZOPaDg8ENfPJMSINq

X (Twitter):

Howard: https://x.com/LithiumIonBull

Rodney: https://x.com/RodneyHooper13

Matt: https://x.com/matt_fernley

_________________________________________________

DISCLAIMER

NOT INVESTMENT ADVICE. DO YOUR OWN RESEARCH

Howard, Matt and Rodney are not financial advisors nor broker-dealers, this video is for information purposes only and should not be considered investment or financial advice. Please do your own independent research and read the disclaimer at the end of the video or on RK Equity's website https://www.rkequity.com

Intro and outro audio credit: Jamie Klein

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