Gladstone, Queensland, is contributing to the global artificial intelligence (AI) industry through the production of high-purity alumina (HPA). This critical mineral is essential for cooling high-performance chips utilized by major technology companies like NVIDIA, Intel, and Amazon.
HPA's Role in AI Technology
High computing power in data centers generates substantial heat, which can impede the growth and performance of AI technologies. Alpha HPA, a Gladstone-based company, produces HPA, which is incorporated into modern semiconductors to dissipate heat from critical components. This function is crucial for maintaining optimal operating temperatures, as exceeding them can reduce performance and lead to component failure.
Experts note that contemporary computer chips generate significant heat due to the astronomical number of calculations they perform. HPA is effective as both an insulator and a conductor of heat, addressing a critical challenge in chip design.
Alpha HPA's Expansion and Support
Alpha HPA is constructing the world's largest facility for refining high-purity alumina in Gladstone. The company currently employs approximately 130 individuals and anticipates nearly doubling its workforce within the next year. It sources chemicals from Orica and alumina feedstock from Rio Tinto.
The demand for critical minerals like HPA, driven by the projected multi-trillion dollar AI sector by the 2030s, has accelerated Alpha HPA's expansion. The company has secured significant financial support, including a $30 million allocation from the Queensland Government's critical minerals and battery technology fund, and a $400 million financing package from the Federal Government's Export Finance Australia and the Northern Australia Infrastructure Facility.
Alpha HPA has commenced commercial sales of HPA to semiconductor manufacturers in Asia and the United States. The company holds letters of intent to supply up to 4,000 metric tonnes of HPA annually. Initially established as a nickel miner in New South Wales, Alpha HPA relocated to Gladstone in 2021 to leverage local access to necessary chemicals and feedstock for its proprietary technology.