Company Interview / Three small stocks with an edge

James Whelan from Barclay Pierce Capital highlights HPA’s role in LEDs, EV batteries, and semiconductors, making it vital in the geopolitical landscape. China dominates the market, but Australia is emerging as a key player.

Companies like Alpha HPA (ASX: A4N), Chemex Materials (ASX: CMC), and Impact Minerals (ASX: IPT) are leading the charge. IPT, with its aluminum clay deposits in WA, aims to be the world's lowest-cost HPA producer.

Investment risks exist, as many companies are still in early production stages, but government support, such as a $2.87 million grant for Impact Minerals, signals confidence. With a projected 20–25% CAGR and high production costs creating market barriers, HPA presents a niche investment opportunity. As global supply chains localize, exposure to HPA could be a strategic addition to portfolios.