MADE in the USA Powering America’S Clean Energy Transition
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LITHIUM – MADE IN THE USA Powering America’s Clean Energy Transition :PLL :PLL ABN 50 002 664 495 September 2020 OUR PURPOSE CORPORATE SNAPSHOT To provide the domestic lithium required for PIEDMONT LITHIUM LIMITED America’s transition to a clean energy future Shares / ADRs (1 ADR = 100 Shares) 11.5 M 1,155.3 M Price (@ 8/28/20) $6.05 A$0.09 Average Daily Trading Volume (30-day) $620,000 A$103,000 Market Cap (@ 8/28/20) 1 $69 M A$99 M Founded in 2016 – Headquartered in Belmont, NC, USA Cash (@ 6/30/20) 1 $26 M A$36 M 1 – Pro forma for the placement which closed 8/4/20 Listed on NASDAQ and ASX – Symbol PLL KEY SHAREHOLDERS Australian Super 13% Fidelity 9% Plan to Produce Lithium Hydroxide from Spodumene Officers and Directors 8% United States ADR Program 24% Ideally Located to Address China’s Market Dominance BOARD OF DIRECTORS Ian Middlemas Australia Chairman Keith D. Phillips USA President & CEO World-Class Business in Scale and Economics Anastasios Arima USA Director Jeff Armstrong USA Director Jorge Beristain USA Director Strong Cash Position Levi Mochkin Australia Director RESEARCH COVERAGE Trading at Steep Discount to NPV and Peer Group 2 : PLL : PLL THE PIEDMONT VALUE PROPOSITION . Electric vehicle (EV) penetration projected to grow from ~3% to ~30% by 2030 Electric Vehicle Demand Accelerating . EV equities are at all-time highs as investors price in the electrification mega-trend . Volkswagen describes lithium as the ‘irreplaceable element of the electric era’ EVs Require Lithium . Other materials can vary but a relatively stable lithium content is required in all Li-ion batteries . Lithium hydroxide (LiOH) is required for high-nickel batteries in longer-range vehicles Lithium Hydroxide is Taking Share . LiOH demand expected to grow 21% per year through 2040 . Piedmont will produce LiOH from spodumene, the feedstock preferred by western OEMs Spodumene the Preferred Feedstock . Piedmont has a large, high-grade spodumene resource on the Carolina Tin-Spodumene Belt . China produces ~83% of the world’s lithium hydroxide OEMs Seeking Ex-China Supply . Piedmont is developing the only conventional lithium project in the United States . Project is world-class in terms of scale and economics with NPV of $1.1B for integrated project World-Class Project . Business model is uniquely scalable given US location and global availability of spodumene . PLL trades at <10% of net present value and at a significant discount to key comparables Piedmont is Attractively Valued . $26M cash position to drive project forward to construction LITHIUM HYDROXIDE…FROM SPODUMENE…IN THE UNITED STATES 3 : PLL : PLL ELECTRIFICATION IS A GLOBAL MEGA-TREND ELECTRIC VEHICLE PENETRATION 80.0% . EVs are superior vehicles 70.0% ‐ Smoother, quieter, faster 60.0% . EVs reduce emissions 50.0% ‐ 2/3 lower greenhouse gas emissions vs. ICEs 40.0% 30.0% . EVs are lower cost ‐ Far cheaper to fuel and 20.0% maintain 10.0% 0.0% Tesla Model 3 4 Source: Benchmark Minerals Intelligence : PLL : PLL EV DEMAND IS DRIVEN BY ECONOMICS LI-ION BATTERY COSTS DOWN 87% SINCE 2010 EV SELLING PRICES PROJECTED TO FALL DUE TO LOWER BATTERY COSTS (PACK PRICE - REAL 2019 $/KWH) $1,200 $45,000 250 Mile Range EV Price Toyota Camry MSRP $40,000 $1,000 -22% $35,000 $800 $30,000 -21% -8% $25,000 $600 -11% $20,000 $400 -35% $15,000 -23% -26% $10,000 -18% $200 -13% $5,000 $0 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2018 2020 2022 2024 : PLL : PLL 5 Source: Bloomberg New Energy Finance https://about.bnef.com/blog/behind-scenes-take-lithium-ion-battery-prices Source: ARK Innovation – Big Ideas 2020 SUPPORTIVE POLICY DRIVING EUROPEAN EV SALES EU CO2 EMISSIONS PENALTIES 2021 4 YEAR CONSUMER OWNERSHIP COSTS EV SALES GROWTH IN EUROPE $45.0 40,000 € 3,000 € 5,000 € 4,000 € bonus by JUNE YTD YTD YTD $39.1 $39.1 bonus by bonus by government 2020 2020 2019 CHANGE $40.0 government + 35,000 € government + 2,000 € + Sweden 26% 26% 11% 136% 6,000 € 1,000 € bonus by car 7,000 € 1,000 € bonus by bonus by car manufacturers $35.0 bonus by bonus by car government manufacturers government manufacturers Netherlands 16% 13% 9% 78% 30,000 € + $28.8 3,000 € $30.0 bonus by car Other 11% 11% 6% 83% manufacturers Australia Spain 25,000 € France Italy $25.0 $22.8 United Kingdom 10% 8% 2% 400% Germany BILLIONS $18.8 20,000 € $20.0 France 9% 9% 2% 350% $15.2 Germany 9% 8% 3% 200% $15.0 15,000 € $11.8 AVERAGE 8% 8% 3% 167% $10.0 $8.6 10,000 € $5.6 Belgium 7% 7% 3% 133% $5.0 $2.8 $1.5 Austria 6% 6% 3% 100% $0.6 5,000 € $0.0 Italy 3% 3% 1% 200% 0 € Spain 3% 3% 1% 200% VW e-Golf VW e-Golf VW e-Golf VW e-Golf VW e-Golf VW e-Golf VW e-Golf (Recovery (Recovery (Recovery (Recovery (Recovery Gasoline Poland 1% 1% 0% 100% Package) Package) Package) Package) Package) 6 Source: HSBC, Macquarie, JATO Source: International Council on Clean Transportation Source: International Council on Clean Transportation SUPPORTIVE POLICIES IN THE USA 7 : PLL : PLL TESLA MODEL 3 THE #1 SELLER IN THE UNITED STATES SMALL + MIDSIZE LUXURY CAR SALES - H1 2020 38,314 Tesla Model 3 38,195 BMW 2 + 3 + 4 + 5 Series 33,509 Mercedes C/CLA/CLS/E-Class 27,382 Audi A3 + A4 + A5 + A6 24,941 Lexus ES + GS + IS + RC 18,861 Tesla Model Y 11,043 Infiniti Q50 + Q60 + Q70 9,815 Acura RLX + TLX 9,043 Lincoln Continental MKZ 8,383 Chrysler 300 7,624 Volvo 60 + 90 6,615 Cadillac CT5 + CT6 + CTS + XTS 6,393 Genesis G70 + G80 3,451 Alfa Romeo Guilia 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Tesla Model 3 sales are a highly informed estimate : PLL : PLL 8 Chart: Clean Technica | Source: Automakers, Clean Technica VW ID.3 (2020) IT’S NOT JUST TESLA # OF EVS LAUNCHED BY 2025 . Major auto companies VW 80 are all-in on electric BMW 47 vehicles Geely 41 Mustang MachE ‐ 400+ new EV models coming (2021) to market by 2025 Changan 34 FCA 32 Rivian Trucks (2022) . Mass market vehicles SAIC 30 coming for the first time Ford 28 ‐ Ford to produce electric F-150 HMC-KIA 23 “before 2022” GM 20 ‐ VW ID.3 launching in 2020 RNM Alliance 12 ‐ Renault producing $9,000 EV Peugeot 11 Porsche Taycan for Indian market (2020) Toyota 10 Daimler 10 020406080 9 Source: Bloomberg New Energy Finance Electric Vehicle Outlook 2019 : PLL : PLL EQUITY MARKETS ARE PAYING UP FOR EV EQUITIES YTD SHARE PRICE PERFORMANCE . EV equities outperforming ‐ TSLA and others up >200% ytd 434% WKHS . EVs dominating the SPAC market 415% TSLA 397% NIO 302% NKLA . Private capital investing aggressively ‐ Rivian has raised $5.35B in past 18 months 299% FUV . Battery raw materials stocks lagging 287% BLNK ‐ LIT ETF up only 40% ytd, largely driven by TSLA 43% LIT 0% 100% 200% 300% 400% 500% 10 : PLL : PLL YOU CAN’T HAVE EVS WITHOUT LITHIUM “LITHIUM: THE IRREPLACEABLE ELEMENT OF THE ELECTRIC ERA” (VW) LITHIUM CHEMICAL DEMAND 2020-2040 6,000,000 LITHIUM Lithium Carbonate Demand (t/y) is the lightest and most energy-dense Lithium Hydroxide Demand (t/y) metal, making it ideal for energy 5,000,000 storage applications 4,000,000 LITHIUM HYDROXIDE is required in the high-nickel cathode materials used in longer-range EVs 3,000,000 2,000,000 LiOH SHORTAGES are expected by 2023 TONNES OF LITHIUM CARBONATE EQUIVALENT (LCE) OF TONNES 1,000,000 CHINA Produces the vast majority of the - world’s lithium hydroxide 2020 2025 2030 2035 2040 Source: Benchmark Mineral Intelligence 11 SPODUMENE THE PREFERRED FEEDSTOCK SPODUMENE IS THE LOW- MAJOR AUTO COMPANIES COST SOURCE FOR PREFER SPODUMENE- LITHIUM HYDROXIDE SOURCED HYDROXIDE Raw Material Carbonate Conversion Hydroxide Conversion 7,000 “Lithium extracted from mining … is commercially more attractive … more stable to 6,000 extract, easier to scale and generally more 5,000 2,000 sustainable.” VW –April 2019 4,000 2,100 3,000 “BMW signs contract with Ganfeng for 3,500 2,000 sustainable lithium from mines in Australia.” 3,000 BMW – November 2019 1,000 665 - Brine Spodumene Source: McKinsey & Co., costs represent indicative 2025 costs for typical South American brine operations and typical Western Australian spodumene operations. 12 WILMINGTON BALTIMORE PIEDMONT IDEALLY LOCATED IN THE WILMINGTON USA’S AUTO ALLEY… CHARLESTON SAVANNAH JACKSONVILLE HOUSTON NEW ORLEANS TAMPA BAY EVERGLADES 13 : PLL : PLL …AND CLOSE TO EUROPE’S GROWING BATTERY SUPPLY CHAIN 14 NORTH CAROLINA - THE CRADLE OF THE LITHIUM INDUSTRY USA #1 US State for PROJECT Business (Forbes ) 0% State Mining Royalties 23% Corporate Tax Rate ~100% of World Lithium Production from 1950s to the 1980s 15 : PLL : PLL TWO COMPLEMENTARY DEVELOPMENT SCENARIOS USA CHEMICAL PLANT PROJECT MERCHANT INTEGRATED Spodumene Supply Spodumene from Piedmont from the Market Mine / Concentrator Capacity of 22,700 t/y LiOH Capacity of 22,700 t/y LiOH 25 Year Chemical Plant Life 25 Year Mine & Chemical Plant Life World’s Lowest Cost Merchant Producer2 World’s Lowest Cost Producer2 $714M NPV – 26% IRR1 $1.1B NPV – 26% IRR1 $149M run rate EBITDA1 $218M run rate EBITDA1 Initial Capex – $377M1 Initial Capex - $545M1 1. Source: Estimated values previously announced in Company announcement “Chemical Plant PFS Demonstrates Exceptional Economics and Optionality of USA Location” dated May 26, 2020 2. Based on Roskill’s forecasted 2028 all-in sustaining cost curve for lithium hydroxide production : PLL : PLL 16 NC Advantage NORTH CAROLINA vs.