Lithium Universe Limited · ASX:LU7
Lithium Universe — Investor Presentation (October 2024)
43 slides from Lithium Universe's investor presentation, Oct 1, 2024
Slide 1: Lithium Conversion
SH =-LITHIUM CONVERSION im! use only
Slide 2: Upstream | Mine Supply
UPSTREAM | MINE SUPPLY For personal use only • +40 companies Quebec lithium exploration • Large +500Mt at +1% Li2O resource • Resource has doubled in the past year • Transatlantic supply – Canada, Brazil, Africa THE LITHIUM GAP
Slide 3: Downstream | Demand
DOWNSTREAM | DEMAND For personal use only • Nth America to surge in battery manufacturing • +20 manufacturers to add 1,000GW by 2028 • Tenfold increase in current capacity • Will need 850,000t LCE per year THE LITHIUM GAP
Slide 4: The Lithium Gap: Current Conversion
For personal use only THE LITHIUM GAP CURRENT CONVERSION
Slide 5: Downstream | Regulation
DOWNSTREAM | REGULATION For personal use only • US, Canada cut Chinese battery material reliance • Chinese firms ordered to exit from Canadian companies • Tariffs on Chinese processed LCE rise to 25% • Canadian developers need downstream solutions THE LITHIUM GAP
Slide 6: Midstream | Processing
For personal use only MIDSTREAM | PROCESSING • No current lithium converters in North America • Only 100 Ktpa of converters planned • No lithium refining experience or history • Massive GAP between supply and demand THE LITHIUM GAP
Slide 7: Closing
For personal use only CLOSING
Slide 8: Problems with Filling the Gap
PROBLEMS WITH FILLING THE GAP For personal use only • Complex chemical business • Many failures, and technical difficulties Proven Technology • Even with existing Lithium producers • Years to establish and ramp up Experienced Operators
Slide 9: Experienced Lithium Operators
EXPERIENCED LITHIUM OPERATORS For personal use only • Ran Greenbushes Li in 1995, commissioned Li Carb Plant • First mining executive - lithium-ion battery future • First large scale integrated mine to refinery project • Built Mt Cattlin Spodumene Mine (137 ktpa) • Built Jiangsu Lithium Carbonate Pl
Slide 10: Greenbushes Lithium Veteran, International Downstream Expert
For personal use only GREENBUSHES LITHIUM VETERAN INTERNATIONAL DOWNSTREAM EXPERT • Ran Greenbushes Mine for 25 • Ex-Galaxy GM Technology years • Leading technical expert in the • Oversaw expansion from 200 Ktpa Lithium Industry to 1.4 Mtpa • Designed & Operated world- • Largest spodumene & highest
Slide 11: The Lithium Dream Team
THE LITHIUM DREAM TEAM For personal use only Terry Stark Roger Pover John Loxton John Sobolewski Head of Mining Head of Processing Head of Li Refinery Chief Financial Officer Ex Galaxy GM Operations Ex Galaxy Plant Manager Ex Hatch Li Carb Plant Ex Galaxy CFO & Co Sec
Slide 12: Failed Canadian Li Projects
FAILED CANADIAN Li PROJECTS For personal use only North American Lithium Nemaska Lithium • Started 2014 – Shutdown 2015 • DFS completed 2018 • Spent circa CAD 250m • Spent CAD 411 m • Produced 109 t LC • Failed to start up 2019 THE COMPETITION
Slide 13: Troubled LiOH Plants
TROUBLED LiOH PLANTS For personal use only Tianqi Kwinana LiOH Albemarle Kemerton LiOH Alkaline Pressure Leach • 8 Years so far • 5 years so far • New Technology • Capital Cost Blowout • Still <20% of design rate • Unproven • > A$1 billion • Shut trains 2,3,4 • 1995 Greenbushes 5Ktpa • FY 23 - 8% of
Slide 14: Why Have These Projects Failed?
WHY HAVE THESE PROJECTS FAILED? For personal use only • Lack of operating direction at design • Limited commissioning experience • Use of unproven technology Our Lithium Dream Team are Operators DESIGN
Slide 15: Dream Team Track Record
DREAM TEAM TRACK RECORD Jiangsu Li Carbonate Plant For personal use only 2 Years to Commercial Production Ground Start of Project Breaking Construction Completion 21 Feb 2010 1 May 2010 6 Dec 2011 6 May 2012 (19 months) (6 months Commissioning) • Capital Cost – US$120 m • At design rate 20,000 tpa •
Slide 16: Jiangsu Lithium Carbonate Plant
For personal use only Jiangsu Lithium Carbonate Plant
Slide 17: Closing the Lithium Gap: The Refinery
CLOSING THE LITHIUM GAP BÉCANCOUR THE For personal use only REFINERY
Slide 18: Bécancour Lithium Refinery
BÉCANCOUR LITHIUM REFINERY For personal use only • 18,270 tpa green battery-grade lithium carbonate plant Canadian Source • Located in Bécancour, Quebec’s Battery Hub • Based on proven Jiangsu design Bécancour Lithium Refinery • Company has start-up experience of Jiangsu Worldwide Source • Same flow
Slide 19: Bécancour Lithium Refinery: Robust PFS
BECANCOUR LITHIUM REFINERY STRONG POSITIVE For personal use only ROBUST PFS 1. LU7 ASX Announcement 30 Sept 24 – “Strong Preliminary Feasibility for Becancour Lithium Refinery” 1. LU7 ASX Announcement 30 Sept 24 – “Strong Preliminary Feasibility for Becancour Lithium Refinery”
Slide 20: The Big Why's
THE BIG WHY’s For personal use only • Why build a plant in a depressed price environment? • Why build a plant when others are closing theirs? • Why build a plant when others have failed? • Why can you compete with China? • Why lithium carbonate not hydroxide? LU7 LITHIUM STRATEGY
Slide 21: Counter Cyclical Strategy
COUNTER CYCLICAL STRATEGY For personal use only Why build a plant in a depressed-price environment? • Been through 3-4 lithium cycles • Prices have and will always recover • Lithium demand from EVs and BESS growth strong • Cleaned out all the debris in the lithium supply • Develop a project ready fo
Slide 22: New Capacity Is Required
NEW CAPACITY IS REQUIRED For personal use only Why build a plant when others are closing theirs? • Over supply correction – higher costs closed • Operations not performing, shutting down • New efficient capacity is required for the growth • World requires non-Chinese conversion capacity • Location i
Slide 23: Proven Technology & Team
PROVEN TECHNOLOGY & TEAM For personal use only Why build a plant when others have failed? • Market has cleared out competition • Those that are shutdown – difficult to re-start • When price recovers – there will be shortage again • Companies with established technology will benefit • Companies with
Slide 24: Transatlantic Lithium Conversion Centre
TRANSATLANTIC LITHIUM CONVERSION CENTRE For personal use only Why can you compete with China? • Access to Cheap Green Power • Nearby feedstock - Canada, Brazil and Africa • Decrease in transport costs of spodumene • End market North America • Eliminate 25% tariff on Chinese Li chemicals • End user q
Slide 25: Québec Green Advantage
QUÉBEC GREEN ADVANTAGE For personal use only Why can you compete with China? • Cheap Green Power at 2.6c / kWh • Hydro Québec’s green energy reduces GHG by 95% • Energy costs are 5 times less than other jurisdictions • Strong operational cost advantage LU7 LITHIUM STRATEGY
Slide 26: Bécancour Cost Advantage
BÉCANCOUR COST ADVANTAGE For personal use only Why can you compete with China? Comparison to Chinese Conversion US$/t Canada Tariffs +US$960/t 15% CHEAPER Transport +US$600/t USA US$3,250 /t LU7 US$3,970 /t Africa Brazil LU7 LITHIUM STRATEGY
Slide 27: Li Carbonate Will Dominate
Li CARBONATE WILL DOMINATE For personal use only Why Lithium carbonate not hydroxide? • Proven track record in Li Carbonate • Li Carbonate feed for LFP lithium batteries • LFP battery demand growth due to safety and costs • LFP 67% of China EV installations in 2023 • LFP forecast 87% of ESS market i
Slide 28: Good Location: The Lithium Refinery
GOOD LOCATION For personal use only THE LITHIUM REFINERY
Slide 29: Good Location, Close to Infrastructure
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Slide 30: Good Location
GOOD LOCATION For personal use only 30,000 Spodumene Shipments Bécancour Lithium Refinery THE LITHIUM REFINERY
Slide 31: Lithium Refinery Flow Sheet
LITHIUM REFINERY FLOW SHEET Sulphuric Acid For personal use only Cooler Calciner Cooler Sulphating Hydrated Alpha Kiln Hydrated Beta Lime Spodumene Spodumene Lime Spodumene Ball Milling Water Filter Process Liquor Leaching Polishing Wash Tank Filter Mg Ca Water Alumina Precipitation Precipitation So
Slide 32: Lithium Refinery Design
LITHIUM REFINERY DESIGN For personal use only ß Spod Sulphation Calciner Spodumene Storage Kiln Storage Leaching Residue Sodium Storage Sulphate Plant Boilers Residue Cooling Processing Towers Process Water Treatment Product Warehouse Reagents LiC Production Storage & Purification Maintenance Buildi
Slide 33: Processes All Spodumene Types
PROCESSES ALL SPODUMENE TYPES For personal use only • Lithium Refinery to have robust capability • Samples - international sources of spodumene • Imports while Canadian Li industry develops • All programs achieve battery grade specs 99.5% Li2CO3 • Low critical impurities Na <100 ppm vs. <250 ppm (ST
Slide 34: Project Advancements
PROJECT ADVANCEMENTS For personal use only • Application to Hydro Quebec for 22.5 MW electricity • Completed environmental survey – no issues • Surface water hydrology study completed • Soil contamination desk top study completed • Co-operation with W8banaki First Nation commenced THE LITHIUM REFINE
Slide 35: Bécancour Lithium Refinery: Conservative Price Forecast
BECANCOUR LITHIUM REFINERY CONSERVATIVE For personal use only PRICE FORECAST SC6 US$1,170/t LC $20,970/t 1. LU7 ASX Announcement 30 Sept 24 – “Strong Preliminary Feasibility for Becancour Lithium Refinery”
Slide 36: Bécancour Lithium Refinery: Net Present Value
BECANCOUR LITHIUM REFINERY NET PRESENT VALUE 8% For personal use only US$ 779 MILLION 1. LU7 ASX Announcement 30 Sept 24 – “Strong Preliminary Feasibility for Becancour Lithium Refinery”
Slide 37: Bécancour Lithium Refinery: IRR and Payback
BECANCOUR LITHIUM REFINERY IRR PAYBACK For personal use only 23.5% 3.5 YEARS 1. LU7 ASX Announcement 30 Sept 24 – “Strong Preliminary Feasibility for Becancour Lithium Refinery”
Slide 38: Bécancour Lithium Refinery: EBITDA and Capex
BECANCOUR LITHIUM REFINERY EBITDA CAPEX For personal use only US$ 147M US$ 494M 500,000 Quebec Lithium Refinery Pre -Tax Cashflows 400,000 300,000 200,000 100,000 - US$'000 (100,000) (200,000) (300,000) (400,000) (500,000) (600,000) Capex Spodumene Costs Processing Costs Revenue Net Cashflow 1. LU7
Slide 39: Bécancour Lithium Refinery: Conversion Cost
BECANCOUR LITHIUM REFINERY CONVERSION COST For personal use only US$ 3,976 /t LC Natural Gas Electricity Other 4% 5% 30% Sulphuric acid 11% Sodium Labour carbonate 18% Limestone 26% 5% Caustic soda 1% 1. LU7 ASX Announcement 30 Sept 24 – “Strong Preliminary Feasibility for Becancour Lithium Refinery
Slide 40: All Upside – 25% Price Increase
BECANCOUR LITHIUM REFINERY ALL UPSIDE – 25% PRICE INC For personal use only NPV US$1.24 Billion EBITDA Sensitivity to Lithium Carbonate Price 600 500 EBITDA (US$ MILLIONS) 400 300 200 100 - $14,000 $16,000 $18,000 $20,000 $22,000 $24,000 $26,000 $28,000 $30,000 $32,000 $34,000 $36,000 $38,000 $40,00
Slide 41: DFS and Offtake Discussions
DFS AND OFFTAKE DISCUSSIONS For personal use only • Offtake Discussions with OEMs • Complete full Definitive Feasibility Study • Project Permitting • Funding Plan • Strategic Investors at Project Level THE LITHIUM REFINERY
Slide 42: Investor Highlights
For personal use only LITHIUM DREAM TEAM Proven Lithium Track Record PROVEN TECHNOLOGY Derisking Lithium Conversion Technology BÉCANCOUR LITHIUM REFINERY Closing the North American Conversion Gap INVESTOR HIGHLIGHTS
Slide 43: Cautionary Statements
CAUTIONARY STATEMENTS Information Required by Listing Rules For personal use only The Becancour Lithium Refinery Preliminary Feasibility Study (PFS) does not rely upon estimated ore reserves / and or mineral resources. The spodumene concentrate feedstock for the proposed refinery has been assumed to
Lithium Universe — Investor Presentation (October 2024) on 6ix