Alpha HPA Secures Major Supply Deal with Japanese Electronics Giant for AI-Driven Semiconductor Market

Alpha HPA, an Australian critical minerals manufacturer, has announced a significant supply agreement with a leading Japanese electronics company amid soaring demand for semiconductors powering artificial intelligence (AI) technologies. The ASX-listed company will supply high-purity alumina (HPA) from its upcoming refinery in Gladstone, Queensland, which is set to become the world’s largest HPA production facility.

HPA is a critical material used as a cooling agent in advanced semiconductor chips that power AI data centers, addressing the substantial heat generated by these systems. The $553 million Gladstone project, which began construction last year, received strong backing through Australia’s Future Made in Australia policy. The federal government provided $320 million in project debt funding and an $80 million cost overrun facility, alongside a $120 million fully underwritten equity raise led by Bell Potter and Macquarie Capital.

Alpha HPA’s managing director, Rimas Kairaitis, emphasized the importance of government support in advancing the project. “It has been the rock behind our success because it sends a kind of soft signal,” Kairaitis stated.

Production at the Gladstone facility is expected to commence in 2026, with an annual output capacity exceeding 10,000 tonnes of ultra-high-purity aluminum products and premium aluminum materials. The facility is projected to create 300 construction jobs and 120 permanent operational roles.

Looking ahead, Alpha HPA is exploring opportunities to expand its operations into Canada, leveraging growing global demand driven by data centers and AI technology. Kairaitis highlighted that about 40% of electricity consumption in data centers is dedicated to cooling, underscoring the critical role of HPA in managing this energy demand.