ABx Group Limited has provided an update regarding progress at its 83% owned subsidiary, ALCORE Limited, which is advancing a breakthrough technology that produces hydrogen fluoride and other industrial chemicals from aluminium smelter bath waste. This innovative process, which aims to enhance Australia’s sovereign capability in critical minerals production, received a total of $7.58 million in grant funding under the Federal Government’s Modern Manufacturing Initiative. This initiative supports the commercialisation of advanced manufacturing projects and integration into both domestic and international value chains. During 2023, ALCORE received two instalments amounting to $5.69 million. These funds have been used to support a progression from laboratory tests to the construction of a continuous pilot plant facility in Bell Bay, Tasmania. The facility, which is leased from Rio Tinto, is set to benefit further from an intended conditional loan of $1 million from the Tasmanian Government. Orders for all key equipment have now been placed and the project remains on track despite the Modern Manufacturing Initiative grant program concluding at the end of March 2025. Of the approved project expenditure totalling $7.44 million, $3.15 million originates from the Modern Manufacturing Initiative grant funds. However, there remains an unused balance of $2.53 million that, according to the Department of Industry, Science and Resources, is subject to repayment. Both ALCORE and the department are finalising an optimal repayment schedule, with assurances that this condition will not hinder the project’s development. The news presents a mixed sentiment for traders. On the bullish side, the significant financial support from the Federal Government underlines confidence in the potential of ALCORE’s proprietary process and its capacity to commercialise in Australia. The secured orders for pilot plant equipment and strategic associations with major players like Rio Tinto enhance the company’s growth prospects in critical industries such as rare earths and fluorine waste recycling. Conversely, the requirement to repay the $2.53 million unused grant funds introduces an element of financial uncertainty. For traders with a cautious outlook, the pending repayment arrangement and the inherent risks associated with forward-looking statements might suggest a need for vigilance as the project continues to evolve.