CHANGE THE WORLD WITH LITHIUM
APRIL 2016
CONFIDENTIAL INFORMATION
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Disclaimer
The information contained in this presentation has been provided by Tianqi Lithium Co., Ltd.("Tianqi Lithium") to the potential client or investor and is intended for the confidential and limited use of that potential client or investor only in connection with a proposed business partnership or investment.
The information in the Presentation may contain confidential and/or legally privileged material. The information and rights held in it is owned by Tianqi Lithium and its connected persons and is provided to the intended recipient. This Presentation must not be copied, reproduced, distributed or passed, in whole or in part, to any other person without the prior written consent of Tianqi Lithium.
Tianqi Lithium & its subsidiary companies accept no liability for any loss or damage resulting directly or indirectly from the use of the Presentation or the information contained within.
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CONTENTS
1) Tianqi Overview
2) Lithium Production Plants
3) Lithium Resources
4) Lithium Market Overview
5) APPENDIX
o
History of Development
o
Competitive Advantages
o
Technology Advantages
o
Lithium Industry Supply Chain
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Tianqi Overview
■ Founded in 1995, specialized in lithium for more than 20 years
■ Headquarters in Chengdu, Sichuan, China, with facilities and locations in Shanghai, Hong Kong,
Australia and UK
■ Listed on Shenzhen Stock Exchange (SZ: 002466) with a $US6.8 billion market capitalization (as of April 2016)
■ Employees: 1,000
■ Vertically integrated with high grade upstream lithium resources and high quality downstream production assets.
■ LCE Chemical Capacity: 33,000 MT/yr (lithium carbonate: 26,000 MT/yr, lithium hydroxide: 4,000 MT/yr, lithium chloride: 2,000 MT/yr, other speciality lithium products: 1,000 MT/yr )
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Global Footprint
■ Headquarters
•
Chengdu, Sichuan, China
■ Chemicals
•
Cananda‐Nemaska
Mineral (Spodumene mine)
Production facilities: 2 (100%)
■ Resources
•
Operating project:
Greenbushes, WA (51%)
•
Chengdu
Headquarter
Shehong
Chemical
Zhangjiagang
Chemical
Ganzi
Mineral (Spodumene mine)
Zhabuye
Mineral (Brine lake)
Australia ‐Talison
Mineral (Spodumene mine)
Exploration project: Cuola, Sichuan (100%)
•
Participating projects:
Zhabuye, Tibet (20%)
Whabouchi, Quebec (Tianqi Group, ~10%)
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Lithium Production Plants
Shehong Facility‐Sichuan China
■ Built in 1995, covering an area of 200,000m2
■ First plant producing battery grade lithium chemicals in China, long record for product quality and consistency
■ Capacity: 15,000 MT/yr lithium chemicals, including Li2CO3, LiOH, LiCl and Li metal
■ Developed many product & design patents ■ 7,139m2 professional Lab
■ 8,500m2 pilot workshop
■ ICP‐OES, LPS, AAS, Malvern, etc.
■ ISO14001 & ISO9001
■ BG28001
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Lithium Production Plants
facility
port
Zhangjiagang Facility‐Jiangsu China
■ 100% acquired by Tianqi in 2014
■ Automated production line powered by natural gas, close to port, acid and soda supply
■ Capacity: 17,000 MT/yr lithium carbonate (battery grade)
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Lithium Resources (Greenbushes‐Australia)
■ Highest grade lithium mineral resource in world
■ Explored and proven reserves of 118,400,000 MT, more than double all other global deposits
■ Located 250km south of Perth and 90km east of Bunbury, a major port in Southwest Australia with storage, sophisticated loading infrastructure and convenient logistics
■ Skilled workforce, significant technical expertise
■ Commenced manufacturing lithium concentrate in
1985, experts in this field for >30 years
■ Annual capacity: 740,000 MT (LCE 110,000MT)
■ Product category: technical grade (applied in basic chemical industries) and chemical grade (applied in lithium chemicals)
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Lithium Resources (Greenbushes‐Australia)
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Mid / Long term Strategies
• Significant lithium reserves increases in recent times
Greenbushes Lithium Operations
Lithium Mineral Resources & Reserves
– Reserves increased from 0.9Mt in March 2010 to 4.8Mt LCE in December 2014
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– Grade 2.4% Li2O
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– Substantial additional resources to extend life further
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– Supports future processing expansions
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LCE (Mt)
– This in turn supports future downstream capacity expansions by Tianqi 7
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4
3
2
1
0
Mar‐2010
Mar‐2011
Reserves
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Dec‐2012
Dec‐2014
Resources
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Lithium Resources (Greenbushes‐Australia)
Stable and secure location of supply
■ Australia is a politically stable country, with a strong rule of law
■ SW Australia is geographically stable with minimal risks of disruption to supply from seismic events
■ SW Australia not subject to inclement weather conditions that may reduce supply or interrupt transport with low rainfall and no snowfall
■ Supply from a completely different region to key existing supply points of lithium raw material, enhancing geographic diversification of supply for Tianqi customers
■ Logistically close to China, reducing time and cost for deliveries (approx 2 week transit time).
■ Low environmental impacts associated with spodumene production
■ Chemical composition of lithium ore body subject to less variation than lithium brine salar
■ Speed of production from lithium ore to downstream lithium products such as lithium chloride approximately 4‐6 weeks versus typical 18‐24 months for lithium brine
■ Significant spodumene storage capacities in Australia and in China
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Lithium Raw Material Storage
■
Significant spodumene (6% Li2O) storage capacities in:
‐ Australia (~50,000MT) ‐ China (~70,000MT). Shehong plant has a multiple warehouse, onsite storage capacity of ~50,000MT
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Lithium Resources (Jiajika‐China & Whaboushi‐Canada)
■ Part of Jiajika Mine, the largest spodumene deposit in Asia, locating in Sichuan Province
■ Deposit of 19,054,300 MT, with 223,400 MT Li2O, equivalent to 3,720,000 MT of SC6.0 lithium concentrates
■ 40‐year mine life at the current capacity
■ Exploration completed
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Lithium Resources (Zhabuye‐China)
■ Ranked as the second largest brine resource in the world, located in Tibit, 1,100km from Lhasa, at an altitude of 4,400 meters
■ This brine is rich in natural lithium carbonate
■ Explored lithium reserves encompassing the South Lake Surface brine, Intercrystal brine and North Lake Surface brine is 1,830,000 MT(as Li2CO3)
■ The magnesium to lithium ratio is 0.02; potash resources quantity as KCl is 15,920,000 MT, and 9,630,000 MT of B2O3 resources
■ The concentrate capacity (as Li2O, 6%) has increased from 6,087 MT in 2012 to 8,000 MT in 2014
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Lithium Market Overview
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Structure of the Lithium Market
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Lithium End Uses
Portable Electronics
–
–
–
–
38% of market
Growth +20% last 10 years
More functionality = more power
Continue to grow at similar levels
Transport/Mass Energy Storage
Minimal consumption at present
Strong growth forecast from 2017
Conventional
62% of market Growth ~ 5% last 10 years
• Growth drivers – demand for portable power (communications & power tools) & clean energy (EVs)
• Forecast Gro.wth ~10%pa through 2020
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Forecast Lithium Demand
Forecast LCE Demand
300,000
250,000
LCE Tonnes
200,000
150,000
100,000
50,000
0
2015f
2016f
2017f
2018f
2019f
2020f
Other
Aluminium smelting
Primary battery
Air treatment
Polymer
Metallurgical powders
Glass
Greases
Glass‐ceramics
Ceramics
Rechargeable batteries
Roskill Demand A
Source: Roskill 2015
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Lithium Ion Battery Demand
Explosive growth in the China EV
market commenced mid-late 2015
(passenger vehicles & buses)
xEV demand driven by growth in
HEV, PHEV and EV
2015-2025 CAGR of +21%
Lower cost xEV and more choice
= higher adoption rates
Source: Avicinne Energy 2016
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Thank you!
Further Information
Ron Mitchell
Sales and Marketing Manager Tianqi Lithium
Perth, Australia
P: +61 (0) 8 6241 4902
M: +61 (0) 407 726 325
F: +61 8 6241 4988
E: [email protected]
W: http://www.tianqilithium.com/en
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APPENDIX
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History of Development
■ Completed equity acquisition of Windfield, the holding company of Talison Lithium
■ acquired 20% share of Rikaze‐Zhabuye Lithium, starting brine resources layout
■ acquired 100% share of Galaxy Resources' Lithium Carbonate Plant in Jiangsu, China
■ Tianqi Group, the holding company of Tianqi Lithium acquired Talison Lithium, Australia
■ Acquired mining permit for Cuola Spodumene Deposit, Yajiang County, Sichuan Province
■ Invested in Shanghai Aerospace Power Technology Co., Ltd.
■ Selected as “National Hi‐Tech Industrialization Base for Magnesuim and Lithium Materials”
■ Listed on Shenzhen Stock Exchange
■ Acquired exploration license of Cuola Spoduemene Deposit, Yajiang County, Sichuan Province
■ Reorganized into Sichuan Tianqi Lithium Industries Inc.
■ Founded Ya’an Huahui Lithium, a 100% owned subsidiary
■ Acquired by Tianqi Group
■ Shehong Lithium founded as a state‐owned company
■ Construction of lithium carbonate production facilities started
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Competitive Advantages
Leading technology for
battery grade lithium chemical production
Strong marketing ability and robust sales network
■ Granted many ■ Renown as the patents on spodumene based
lithium chemical production
■ Participated in the national standard formulation for
Li2CO3‐ battery grade
■ R&D Centre establishment, forming long‐term relationships with a number of universities
reliable supplier to >50% anode & cathode material producers in the China domestic market
■ Occupy 80% share of glass and ceramic market
■ Export all over the world, particularly in the applications
of battery, grease,
alloy and glass, etc.
Diversified high grade resourses ■ Own:
ONE operating project:
Greenbushes, WA (51%)
ONE exploration project: Cuola, Sichuan (100%)
TWO participating projects:
Whabouchi, Quebec (Tianqi Group, ~10%)
Zhabuye, Tibet (20%)
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Mature manufacturing and successful capacity expansion experience
■ Largest Spodumene based
lithium chemicals producer in the world with >20 years experience
■ Sucessfull capacity expansions as the leading public listed company in China
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Technology Advantages
■ National Hi‐tech enterprise
Company standards recognized as national standards
■ Provincial technology center of industrialization base for magnesium‐
lithium new material and technology ■ Exclusively owning the core technology for manufacturing lithium carbonate National patents
battery grade and lithium chloride Patents for invention
anhydrous
■ 'Method for Producing Low Magnesium National key products
Battery Grade Lithium Carbonate with Lithium Sulfate Solution' has won the National Torch Plan projects
15th Wipo‐ Sipo Golden Award for Innovative Hi‐tech Products of Sichuan province
Chinese Outstanding Patented Progress Awards of Sichuan province
Invention. 1
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Golden Award for Outstanding Patented Inventation, China
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Lithium Industry Supply Chain
up‐
stream
mid‐
stream
industry subdivisions
products
applications
resourse exploitation
brine, spodumene and lithionite, etc.
chemical, metallurgy, ceramics and glass, etc.
chemicals production
Inorganic chemicals: lithium carbonate, lithium hydroxide and lithium chloride
Organic chemicals & specialities: butyl lithium & lithium metal
glass, ceramic, metallurgy, chemical, grease, pharmaceutical, battery material and construction, etc.
materials production
battery materials: LFP, LMO, LCO, NCM, NCA, LiPF and lithium metal, lithium battery, aviation, transportation and etc.
nuclear industry, etc.
aviation materials: lithium metal and lithium alloy
down‐
stream
battery assembly
■
primary battery and rechargable battery
military equipment, communications
products, smart phone/tablet, electronic products, electric tools, energy storage and electric vehicles, etc. Tianqi strategic orientation: up‐stream resourses + mid‐stream chemicals
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