The pilot plant venture is targeted to reduce scale-up operating risks, produce HPA the market approves-of, and investigate any additional materials the technology can produce.
HPA is a critical material used in lithium-ion batteries to manufacture ceramic separators, which provide increased thermal insulation for improved safety and charging.
It is also reportedly an irreplaceable ingredient in the production of synthetic sapphire, which is used in LEDs, semiconductors, and optical lenses.
ChemX recently said the market was valued at valued at US$1.8 billion and forecast to grow at 18% per annum for the next seven years.
A key competitive advantage claimed by ChemX is its processing technology not being tied to mine production, with the feedstock being a widely available chemical.
ChemX's other assets include its Kimba kaolin-halloysite and Jamieson Tank manganese project on South Australia's Eyre Peninsula.
ChemX had A$5.9 million at the end of June.
Shares in ChemX were up 17% to 21c in late trade on modest turnover, capitalising the company at $19 million.
