Prosecutors have flagged the possibility of further charges against a South Australian man charged with possessing and manufacturing explosives, which were allegedly found in his garden shed last week.

Key points: Aaron Ellis was arrested on April 29 at his Davoren Park home

Aaron Ellis was arrested on April 29 at his Davoren Park home SA Police's bomb squad conducted four controlled explosions the following day

SA Police's bomb squad conducted four controlled explosions the following day Police prosecutors opposed his release on bail in court today

A large police operation was undertaken last Tuesday at a Davoren Park property — in Adelaide's northern suburbs — after authorities discovered the dangerous and highly-volatile material, known as "Mother of Satan".

Police said at the time the incident was not terrorism related, but detectives had been investigating anti-Muslim views the man had allegedly expressed earlier.

Aaron Ellis, 43, faced the Elizabeth Magistrates Court today for a bail application, which the prosecution opposed.

Police prosecutor Steve Arnold said two terabytes of computer data was now being analysed and could lead to further charges.

"This is only the beginning of what is likely to be an extremely protracted and ultimately resource-intensive investigation," he said.

"The prosecution is opposed to all forms of bail including home detention owing to this information.

"There's some significant amount of data to which the investigators are required to process which is potentially revealing further information that will ultimately lead to further charges down the road.

"This doesn't necessarily paint it as an isolated incident."

Magistrate Gary Gumpl said he wanted more information about any potential risk the defendant posed to the public and whether he had any mental health issues.

Lawyer says he had 'no malicious intent'

Mr Ellis's lawyer Stacey Carter told the court her client had fully cooperated with police when they raided his property and he had "no malicious intent".

"He has no malice at all, there's no malicious intent and that is something that is very strongly his instructions," she said.

Alleged explosive manufacturer Aaron Ellis has appeared in court. ( Supplied: Facebook )

The court heard Mr Ellis had a background of potential mental health issues and was vulnerable in custody because he lost a leg in a motor vehicle accident when he was young.

"What I'm concerned about is a man with one leg being kept in G Division because he's vulnerable in custody," Ms Carter said.

She said it might take some time for police to complete the computer analysis and her client could be released on bail in the meantime.

"I believe what my friend is alluding to is some research on the internet about these items … research on a laptop that was located, just like young kids googling how to do pipe bombs and researching instructions on how to put things together, that's what I understand," she said.

Magistrate Gary Gumpl said he was eager to determine the bail application "one way or another", but needed more information.

"If this chap does not pose a real risk to the public he should be a good candidate for home detention, particularly given the fact he's got no priors and given the fact he led the police to the material and given the fact that police immediately came out and said he's no real risk," Magistrate Gumpl said.

"Even if we don't have a terrorist potentially, we may have someone who has mental issues that could still be a harm to other individuals in the community."

Strict bail conditions being considered

Magistrate Gumpl said he would consider whether strict bail conditions could alleviate some of the concerns held by police.

"I think that the residents close by, in fact the public, could be assuaged of their concerns knowing that he's under the gaze of the court, the police and the department of corrections ultimately," he said.

"There may be a way of granting this man bail and still alleviate concerns that police might have, rather than have this chap remain in custody for an indeterminate period waiting for police to make up their mind what they want to do."

Magistrate Gumpl requested more information and adjourned the case to next week.

Last Wednesday, Mr Ellis' stepdaughter Maddi, who withheld her surname, said her stepfather was "not a terrorist" but a loving grandfather of four.

"He's just a loving grandad who loves his kids and his family," she said.

"We want him home. We want him to come home … no-one likes seeing their parents being arrested."