Vulcan Energy Resources Ltd. · ASX:VUL
Vulcan Energy Resources — Investor Presentation (June 2020)
34 slides from Vulcan Energy Resources's investor presentation, Jun 1, 2020
Slide 1: Zero Carbon Lithium
Zero Carbon Lithium™ RESOURCES Zero Carbon Lithiu
Slide 2: Disclaimer
Disclaimer The information contained in this presentation has been differ materially from results ultimately achieved. COMPETENT PERSON STATEMENT prepared by Vulcan Energy Resources Ltd. This presentation is VUL does not make any representations and provides The information in this report that relat
Slide 3: Why Vulcan?
Why Vulcan? We exist First to decarbonise the currently para style C02 high carbon production footprint of lithium-ion batteries used in electric vehicles by producing a world-first That’s equivalent to the 1.05 Billion Zero Carbon Lithium™ hydroxide = annual emissions product from our geothermal li
Slide 4: Lithium exploitation is drying out the world's driest desert
“ Why Vulcan? Lithium exploitation is drying out the world’s driest desert The other current alternative source of lithium is The Acatama Desert in Chile, the world in South America via evaporation ponds, which ’s taxes our planet’s most precious resource: water. It also has a significant impact on
Slide 5: Why Vulcan? European lithium-ion battery cell production forecast to 2029
Why Vulcan? EUROPEAN LITHIUM-ION BATTERY CELL PRODUCTION FORECAST TO 2029 Europe First is undergoing a once-in-a-lifetime switch to electric vehicles. para style 2029 This has made it the fastest growing lithium-ion battery >415 GWh production centre in the world. It has ZERO local supply of lithium
Slide 6: Forecast Demand
Forecast Demand EU FORECAST LITHIUM HYDROXIDE DEMAND 450 400 LiOH THOUSAND TONNES 350 300 250 200 150 100 50 0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Compiled industry data based on cell and cathode production forecasts 6
Slide 7: The Vulcan Zero Carbon Lithium team: Board
The Vulcan Zero Carbon Lithium™ team: Board Lithium, Renewable Energy & Project Finance Experience Dr. Francis Dr. Horst Gavin Ranya Dr. Katharina Wedin Kreuter Rezos Alkadamani Gerber MANAGING DIRECTOR CO-FOUNDER & CHAIR – INVESTMENT NON-EXECUTIVE DIRECTOR – NON-EXECUTIVE DIRECTOR & FOUNDER-CEO EXE
Slide 8: Technical team & consultants
Technical team & consultants World-Renowned Geological & Engineering Expertise First para style Alex Grant CTO DIRECT LITHIUM EXTRACTION Co-founded Lilac Solutions, one of the world’s leading direct lithium extraction technology companies, which raised $20M from Bill Gates’s Breakthrough Energy Vent
Slide 9: Summary
Summary We exist to decarbonize the currently high carbon production footprint of lithium- ion batteries used in electric vehicles. We plan to produce a world-first Zero Carbon Lithium™ hydroxide product from our Vulcan geothermal lithium brine project. It is the largest lithium resource in Europe a
Slide 10: We scoured the globe to find the right project
We scoured the globe to find the right project 181 We had the lithium expertise to 181 know that Zero Carbon Lithium LITHIUM CONCENTRATION production was possible using modern IN BRINE (MG/L LI) extraction methods, provided a deep 77 geothermal brine reservoir could be found that had the following g
Slide 11: Birth of the Vulcan project
Birth of the Vulcan project 0 20 40km We used our geological expertise to pick out the best areas in the Upper Rhine Valley for sub-surface lithium grade and potential flow rate. Upper Rhine Valley, Germany We secured exclusive rights to these areas: a very large license package hundreds of square k
Slide 12: Largest in Europe
Largest in Europe 13.95 7.17 Growth to the largest lithium resource in Europe and the largest, in a low-risk jurisdiction, in the world. GERMANY Top 20 Best Countries for Business (Forbes) CZECHIA Top 10 Corruption Perceptions Index (Transparency International) 6.24 AAA Credit Rating (S&P) SERBIA CO
Slide 13: Our Zero Carbon Lithium process
Our Zero Carbon Lithium™ process Geothermal Brine for Re-Injection Brine (165°C) without Lithium (65°C) We will use renewable heat derived from the geothermal brine to drive the lithium extraction process, Conventional Organic Rankin Cycle with no fossil fuel consumption. Geothermal Energy Plant We
Slide 14: Carbon intensity
Carbon intensity 15 13-15 TONNES* (tC02/tLiOH•H20) INTENSITY CARBON 10 5 5 TONNES* 0 Hard-Rock Salar-Type Brines Spodumene Significant C02 High CO2 High water High OPEX consumption Vulcan Geothermal Brine *See Minviro LCA Study, The CO2 Impact of the 2020s Battery Quality Lithium Hydroxide Supply Ch
Slide 15: No evaporation, mining or fossil fuels
No evaporation, mining or fossil fuels Lithium extraction in South America evaporates large quantities of water in one of the driest places on earth. This stresses the environment and local communities. HARD-ROCK SPODUMENE SALAR-TYPE BRINES Hard rock mines for lithium in Europe are unpopular. Once y
Slide 16: Our way: Zero Carbon Lithium
Our way: Zero Carbon Lithium™ Plant shown is Insheim, neighbouring Vulcan’s own licenses, where Vulcan has an MoU agreement with operator Pfalzwerke geofuture, for a Joint Venture at the geothermal plant to produce lithium hydroxide. The Insheim renewable energy plant is a shining example of geother
Slide 17: What's our target market like?
What’s our target market like? China lithium-ion battery European lithium-ion battery Vulcan Energy Resources cell production to 2018 cell production forecast to 2029 target market In the 2010s, China experienced In the 2020s, the same is forecast to happen Vulcan will capitalise on the fastest the
Slide 18: Location: centre of fastest growing lithium market
Location: centre of fastest growing lithium market Vulcan’s negligible distance to markets is a cost advantage as well as carbon advantage Brandenburg, 2021 Skellefteå, 2021 CAPACITY UNKNOWN 32 GWh, LATER 40 GWh Salzgitter, 2024 Brandenburg 2021 16 GWh, LATER 24 GWh RAMP UP TO 8-12 GWh Erfurt, 2022
Slide 19: Cost advantage of geothermal lithium brines
Cost advantage of geothermal lithium brines Brine projects are the lowest cost method of lithium hydroxide production, typically around US$5-7,000/t. (Source: Canaccord). If you’re producing battery-quality lithium hydroxide chemicals, the price We have the added advantages environment is strong. Li
Slide 20: The Vulcan advantage: size, grade, heat, & jurisdiction
The Vulcan advantage: size, grade, heat, & jurisdiction Vulcan Controlled Thermal Standard Lake E3 Metals Resources Lithium Resources Size (Mt LCE) 13.95 2.7 3.1 6.7 4.4 Grade (mgLi/L) 181 181 168 73 211 Renewable Yes Yes No Yes No Heat Source? Jurisdiction Low Low Low Low High Risk Chart compares r
Slide 21: May '20: Agreement signed with EU-backed body
May ‘20: Agreement signed with EU-backed body to launch Vulcan Zero Carbon LithiumTM Project EIT InnoEnergy will marshal its ecosystem and significant EU-wide resources to launch the Zero Carbom LithiumTM Project forward: Securing project funding, including the use of applicable EU, national or regi
Slide 22: A perfect fit for the European Green Deal
A perfect fit for the European Green Deal Mobilising research and fostering innovation Transforming the Increasing the EU’s Climate EU’s economy for a A zero pollution ambition for ambition for 2030 and 2050 sustainable future a toxic-free environment Supplying clean, affordable Preserving and resto
Slide 23: Where to from here?
Where to from here? PRE- DEFINITIVE SCOPING FEASIBILITY PILOT FEASIBILITY GROWTH STUDY STUDY PLANT STUDY SCALE-UP WITH MARKET We just We have We’ll be In 2021 we want We then plan a We plan to grow completed our commenced our constructing our to complete sensible scale-up, with the European Scoping
Slide 24: Time to market
Time to market Maiden JORC Resource & MoU Agreement with German Plant Operator Scoping Study & LCA Completion Pilot Plant & PFS Permitting, Demo Plant, DFS Permitting, Financing, Construction Staged Commercial Operation 2020 2021 2022 2023-2024 24
Slide 25: Vulcan summary: best-in-class for the 2020s
Vulcan summary: best-in-class for the 2020s SIZE & QUALITY: LOCATION: WORLD’S 1ST POSITIVE EUROPE’S CENTRE OF LOCAL RAPIDLY & ONLY ZERO- SCOPING STUDY: LARGEST FASTEST PARTNERS & THE RIGHT ADVANCING CARBON LITHIUM™ DUAL REVENUE EU BACKING LITHIUM GROWING INFRASTRUCTURE TEAM FOR LITHIUM PROCESS POTEN
Slide 26: Appendix 1: capital structure
Appendix 1: capital structure INSTITUTIONAL 8% 28% ASX : VUL BOARD & MANAGEMENT 64% Shares on Issue 53,670,002 RETAIL Options (28.5c expiring in December 2020) 12,687,512 Performance Milestone Shares* 9,280,000 Performance Rights** 6,350,000 Market Capitalization at 36c (undiluted) ~$19.3M *Vendor P
Slide 27: Appendix 2: proud members of a leading-edge industry
Appendix 2: proud members of a leading-edge industry 27
Slide 28: Appendix 3: information for slide 12
Appendix 3: information for slide 12 Brine M3/Re- Resource Contained Company Code Project Stage Resource Category Information Source source Tonnes Grade LCE Tonnes Lithium NYSE:LAC Cauchari-Olaroz, Chile (50% own- Construction Measured, Indicated & Inferred 7.8 x 109 M3 592 mg/l Li 24.6 Resource Sta
Slide 29: Appendix 4: information for slides 10 & 19
Appendix 4: information for slides 10 & 19 Brine Volume Contained Company Project Stage Resource Category Resource Grade Information Source (km3) LCE Tonnes Controlled Thermal Resources Hell’s Kitchen PEA Complete Inferred Unknown 181 mg/l Li 2.7 Company Website Standard Lithium LANXESS (Joint Ventu
Slide 30: Appendix 5: positive Scoping Study
Appendix 5: positive Scoping Study Zero Carbon LithiumTM Process Electric Transport to Nearby EU Cathode Plants Zero Carbon LiOH - H2O Lithium Hydroxide Zero Carbon Production Heat & Power Plant Trucking of Lithium Lithium Stage Stage Chloride Liquor Zero Carbon 12 Hydroxide Impurity Impurity Heat &
Slide 31: Appendix 6: DLE - commercial future of lithium
Appendix 6: DLE - commercial future of lithium DLE plants: in development DLE plants: commercially operating now • 4 commercially operating DLE from brines used by • increasingly unstable climate. DLE plants operating at end of multiple commercially • Ability to produce consistent The Vulcan Project
Slide 32: Appendix 7: decarbonisation potential calculations
Appendix 7: decarbonisation potential calculations Decarbonisation potential for Zero Carbon Lithium process: Based on 50 kWh average lithium- ion battery size, with average of 0.9 kg LCE/kWh across different cathode chemistries. Total 1.4B vehicles in use worldwide C02 6 million C02 C02 (carsguide.
Slide 33: Appendix 8: aligned with UN Sustainable Development Goals
Appendix 8: aligned with UN Sustainable Development Goals Gender equality Affordable and clean energy Decent work and economic growth Industry, innovation and infrastructure Sustainable cities and communities Responsible consumption and production Climate action 33
Slide 34: Thank you
Thank you @VulcanEnergyRes V-er.com info@v-er.com ASX:VUL FRA:6KO 34
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