How is HPA used?

  • The largest consumption of HPA by volume today is in the manufacture of synthetic sapphire, a super-hard material used as a substrate in LED and semi-conductor production. There is no known substitute for HPA in the production of artificial sapphire.
  • Demand for 4N HPA for LED production continues to grow as LEDs are more widely applied.
  • Demand for 5N+ HPA for sapphire glass production is growing rapidly as this becomes the material of choice in display screens for portable electronic devices such as cell phones and smartwatches.

Market size by purity level

 
 
 
 

What new opportunities are there for HPA?

  • A major growth area for HPA is in the production of separators for lithium Ion batteries. As these batteries are enlarged in size and capacity with corresponding increase in density to meet the ever-expanding demand for electric vehicles, the benefits of HPA in temperature control and safety are expected to drive demand far beyond current levels
 
 

 

End Product Current Share Growth Potential
LEDs >50% high
Semiconductors >15% good
Lithium Ion batteries >10% very high
Sapphire glass for displays >10% high
Medical components >10% good
Aerospace and other >10% good
  • Volume of lithium-ion battery separator used in one EV is said to be 100,000X more than that used in one smartphone.–W-Scope (Japanese manufacturer of separation membranes)

Demand growth forecasts

  • There is universal agreement among technology experts and market analysts that the global demand for HPA will accelerate
  • Here is a survey of recent published industry forecasts (see table below)
  • This survey shows a range of estimates for the compound annual growth rate for HPA over the coming years of 15 to 29%. A consensus projection based on these estimates would be about 20%
  • Some analysts have suggested these projections may prove overly conservative if the lithium ion battery demand accelerates faster. Some analysts have also suggested the demand growth in North America will likely be higher than the global average.
Company CAGR Note Period
Allied Market Research 20.7% 2017- 2023
CRU International 17.5% 2018-2025
Global Market Insights 15.8% Global 2020- 2025
18.0% North America 2020- 2025
Grand View Research 18.0% 2016- 2024
Market Research Future 18.6% 2016- 2022
Markets and Markets 20.1% 2015- 2020
Persistence Market Research 19.7% 2016- 2021
Polaris Market Research 16.5% 2018- 2026
Technavio 29.0% 2019- 2023
Transparency Market Research 15.4% 2018- 2026
  • HPA is a huge growth story… the eyes of the car companies turn from time to time and they’ve landed at the moment on HPA.–Toby Green, CRU International (global consultancy)

Yava’s HPA Opportunity

  • Demand for HPA is expected to grow faster than its supply
  • This will put upward pressure on HPA prices
  • Rising feedstock prices and environmental compliance costs will impact legacy producers
  • Economic and environmental factors indicate that increases in supply will come from new plants using new process technologies and lower cost feedstocks
  • Current HPA competition is concentrated in China, Japan and Korea, but is fragmented, with the largest of dozens of participant companies having only about a 17% share of the global market

The HPA market will be constrained by supply and cost, yielding a very attractive opportunity for new entrants that can add lower cost supply. Yava’s ability to produce very high quality 4N+ HPA will present exceptional opportunities to contribute to the rapidly expanding use of those materials in the lucrative Lithium Ion Battery and sapphire glass markets.