WA – Lithium Valley???
Phil Thick GM
29 January 2018
© Tianqi Lithium Australia Lithium Market
Roskill (June 2017) & Combined Lithium Demand Forecasts through 2026 by Leading Global Lithium Analysts, Investment Banks & Market Par cipants 1,200,000 2026 1,000kt LCE 1,000,000
800,000 2021 450kt LCE 600,000 LCE (ton) 400,000
200,000
- 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Average of CAGR Es mates (13.4% CAGR) Roskill 2017 (17.7% CAGR)
Source: Average of CAGR Es mates (Roskill, June 2017; Albemarle Investor Day Presenta on, 16 March 2017; SQM Investor Day Presenta on, 9 September 2017; Industrial Minerals Lithium Presenta on, 1 June 2017; Canaccord Genuity Lithium Market Update, 27 June 2017; Stormcrow Lithium Presenta on, 31 May 2017; Deutsche Bank Lithium Ion Age Report, 9 May 2016)
§ Roskill (June 2017) Base Case Forecast CAGR¹ (17.7%) / Consensus (13.4%) through 2026 § 4.2016 LCE Market² demand forecast to increase more than Update 3-5x from 200ktpa to 700-1,000ktpa by 2026 § Demand driven by the rechargeable ba ery sector which is supported by pro EV government policy and the introduc on of new EV models by automakers 2 Western Australian Lithium
Talison Lithium – Greenbushes • Tianqi Lithium own 51% of Talison Lithium who operate the Greenbushes mine in Western Australia
• 128 years of mining (Tin, Tantalum, Lithium)
• Commenced manufacturing lithium concentrate in 1985, experts in this field for >30 years
• World’s largest lithium producer (30-35% of the global lithium supply)
• Largest and highest grade mineral resource globally
• 2016 lithium proven and probable mineral reserves 86.40Mt at a grade of 2.35% Li2O (life of mine >60 years)
• Highly flexible operation, able to adjust production profile to meet market demand
3 Western Australian Lithium
Other Lithium Sources
– Pilgangoora – Pilbara Minerals – Pilgangoora – Altura Minerals – Wodgina – Mineral Resources – Mt Marion – Mineral Resources/Neometals – Mt Cattlin – Galaxy Resources – Bald Hill – Tawana Resources – Earl Grey – Kidman Resources
4 Tianqi Lithium Corporation
– Headquartered in Chengdu China, one of the 4 major global lithium companies – Listed on Shenzhen Stock Exchange market cap ~ US10 billion – Operates the two largest lithium carbonate plants in the world in China – Seeking expansion opportunities to meet rapidly rising global demand – Building new $400million plant in Kwinana – Fast tracked stage 2 of plant – another $320million already commenced – Expanding Greenbushes mine with $320million expansion
– Kwinana Lithium Hydroxide Processing Plant (LHPP) will be the largest in the world – 3 times size of next largest – Highest purity lithium hydroxide in the world
– Why Kwinana?
5 Kwinana – Multiple advantages
• Kwinana is the largest industrial area in WA with approximately 4,500 people directly employed and 25,000 secondary jobs arsing from the companies in the area • 65% of people employed in the KIC are from the local area, so ready source of qualified and trained people • Access to water, gas and electricity • Access to reagents • Access to top quality construction and maintenance facilities • Proximity to mine and container port
6 Simplified and integrated production and delivery logistics supply chain
Mine to chemical plant • Greenbushes to Kwinana • 250km, 3 hours by road Chemical plant to export port • Kwinana to Fremantle • 30km, 30 mins by road
Conver ng lithium ore to lithium chemicals in approximately 6 weeks (based on Tianqi’s produc on chain) 7 LHPP Update
• 100% Tianqi Lithium owned project currently under construction
• Capacity: 48,000tpa battery-grade lithium hydroxide
• World’s largest and first fully automated battery-grade lithium hydroxide facility
• Train 1 (24,000tpa) construction expected to be complete by the end of 2018
• Train 2 expected to add another 24,000tpa capacity by the end of 2019
• Converting Greenbushes spodumene into battery-grade lithium hydroxide for use in
the EV industry
• ~85% of contract spend awarded to local WA companies
8 October 2016
9 January 2018
10 Where to from here?
• Can WA/Kwinana become a key player in the global lithium market?
• Can we go further down the supply chain?
• Can we become a major battery producer?
• What would it take to make these things happen?
11