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Silex Systems Limited (ASX: SLX) has successfully completed another key milestone in its project to develop a process for the commercial production of high-purity ‘Zero-Spin Silicon’ (ZS-Si), using a variant of the SILEX laser isotope separation (LIS) technology.

The project is being undertaken in conjunction with project partners Silicon Quantum Computing Pty Ltd (SQC) and UNSW Sydney (UNSW).

The Silex LIS technology has the potential to produce ZS-Si efficiently and at scale to provide a secure supply of this key enabling material for the emerging silicon quantum computing market with initial sales targeted in 2023.

CEO, Dr Michael Goldsworthy, said the three-year project is scheduled to be completed at the end of CY2022 with the commissioning of a commercial pilot production plant, from which the initial output will be sold to SQC under a previously announced offtake agreement.

We launched this project in December 2019, as part of our strategy to commercialise the SILEX technology across multiple markets,” Dr Goldsworthy said.

“We are currently targeting two key global industries with our core SILEX technology, being the nuclear fuel industry and the emerging quantum computing industry.”

“This milestone represents an important achievement in the ZS-Si project, to develop a scalable and cost-effective technique to synthesize chemically pure feed material for the ZS- Si laser enrichment process.”

“There are no reports currently of the feed material being used in any other field and it is not commercially available, which we anticipate will further strengthen the project IP,” he added.

The work involved optimising the synthesis process for the feed material, to validate that it can be safely scaled-up to meet industrial production levels, while at the same time ensuring chemical purity and acceptable costs.

ZS-Si is a unique form of isotopically enriched silicon required for the fabrication of next- generation processor chips which will power silicon-based quantum computers. Quantum computers are expected to be thousands of times more powerful than the most advanced conventional computers in operation today, creating opportunities in several industries, including medicine, artificial intelligence, cybersecurity, and financial systems. Many governments around the world and key corporates such as Intel, Google, IBM, and Microsoft are vying for leadership in Quantum Computing development.

The three-year, three-stage project is due for completion at the end of CY2022 with the planned production of initial commercial quantities of ZS-Si from a SILEX pilot production facility. The first stage, completed in June 2020, involved a ‘proof-of-concept’ demonstration of the silicon enrichment process using laboratory-scale equipment, and initial optimisation of the process.

The second stage of the project, currently underway, involves the design, construction, and operation of scaled-up prototype equipment, including for the feed material synthesis as announced today, with the objective of validating the silicon LIS technology and scalability of the process. The second stage includes several more separate milestones due for completion by late CY2021.

The first batches of ZS-Si product will be purchased by SQC under an Offtake Agreement that was executed in December 2019, which includes SQC making three annual payments of $300,000, two of which have been received to date, as an offset against future purchases of ZS-Si produced by Silex. Current methods for production of enriched silicon are very limited and costly (even for lower purity material) with only a few kilograms produced annually, mostly using gas centrifuge technology.

Should the ZS-Si project be successful, it would enable Australia to establish itself as the world-leader in ZS-Si production, creating a new value-added export market. The project is also supported by a $3 million Federal Government funding grant from the CRC-P which was awarded in February 2020.

The project remains on track to achieve its objective of utilising the SILEX LIS technology to produce enriched silicon in the form of ZS-Si with sufficiently high purity, and to establish the manufacturing technology and capability to scale-up production as silicon-based quantum computing gains traction globally during the next decade. Silex will retain ownership of the ZS- Si production technology and related Intellectual Property developed through the project.

http://www.silex.com.au

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